What Are House Buying Companies and What Do They Do?

what is cash home buying company
  • By My Tennessee Home Solution
  • 20 Mar, 2025

What Are House Buying Companies and What Do They Do?

Selling a home can be stressful, especially if you need to sell quickly or your property requires extensive repairs. Many homeowners in Nashville and Middle Tennessee face unexpected situations that lead them to search for alternatives to the traditional home-selling process. Whether you are dealing with financial hardship, relocating for a job, inheriting a property, or simply wanting to avoid the hassle of selling on the open market, a house-buying company may be the right solution for you.

YouTube video

Companies that buy houses, also known as cash home buyers, specialize in purchasing homes directly from homeowners without requiring repairs, inspections, or long waiting periods. These companies provide a fast and convenient way to sell your house as-is while offering a guaranteed price and closing date. Homeowners who choose this route can avoid:

  • The uncertainty of waiting for an offer on the open market
  • Expensive real estate agent fees and commissions
  • The hassle of making repairs or renovations
  • The frustration of buyer financing falling through at the last minute

If you need to sell your house fast in Nashville, learn more about how My Tennessee Home Solution buys houses for cash and helps homeowners move forward quickly.

Who Are House Buying Companies Best For?

House-buying companies are best suited for homeowners who need to sell their property quickly and with minimal hassle. Selling a home the traditional way often requires costly repairs, multiple showings, and negotiations, which may not be feasible for every homeowner.

If you are facing any of the following situations, working with a cash home buyer could be a great option:

  • Job relocation – You need to move quickly and don’t have time to wait for a traditional sale.
  • Too many repairs – The home requires major updates, and you don’t want to invest more money.
  • Inherited properties – You don’t want to deal with managing or maintaining a home you’ve inherited.
  • Foreclosure concerns – You’re behind on mortgage payments and want to sell before it impacts your credit.
  • Tired landlords – You no longer want the responsibility of rental properties.
  • Divorce or life changes – You need to sell quickly due to a major life transition.

Learn more about selling a house in Tennessee without making repairs and how we can help.

Why Don’t House Buying Companies Pay Full Market Value?

A common misconception is that companies that buy houses are a substitute for real estate agents and that homeowners should expect full market value simply because they are avoiding agent commissions. However, this is not the case. House-buying companies operate differently from traditional real estate transactions because they take on significant costs, risks, and responsibilities.

Homeowners looking for a cash offer should understand that house-buying companies are typically seeking 25% to 30% equity in the property to make a profit—either by reselling the home after renovations or holding it as a rental investment. Because of this, home-buying companies are not the right fit for every seller. Those looking to get the highest possible price for their home may find that listing on the open market with a real estate agent is a better option.

When a house-buying company purchases a property, they are responsible for:

  • Renovation and repair costs – Many homes require significant updates before resale. Learn about the top home improvements that increase property value.
  • Holding costs – Utilities, insurance, and property taxes while the home is being prepared for the market.
  • Commissions and closing costs – If the company resells the home through an agent.
  • Market risks – Fluctuations in home values and unpredictable delays.

For example, if a home is valued at $400,000, a home-buying company might offer $280,000. While some homeowners assume this means the company makes a $120,000 profit, that is far from the truth. After factoring in renovation costs, labor, commissions, and holding expenses, the actual profit may be closer to $45,000—which is a reasonable return for the risk and investment involved.

Curious about the Nashville housing market trends? Check out our Nashville Housing Market Guide to understand how market conditions can affect home values.

Why Do People Choose Cash Home Buying Companies?

For many homeowners, selling their house for cash offers speed, convenience, and peace of mind. Traditional home sales can take months, involve unpredictable negotiations, and sometimes fall through due to financing issues. Working with a home-buying company eliminates these concerns.

Key Benefits of Selling to a House-Buying Company

  • Sell in as little as 7 to 14 days – No waiting months for a buyer.
  • Avoid costly repairs – Sell your home exactly as it is, without fixing a thing.
  • No commissions or hidden fees – Keep 100% of the cash offer without surprises.
  • Guaranteed closing date – Know exactly when your home will sell.
  • Stress-free process – No open houses, no negotiations, and no uncertainty.

For homeowners facing financial challenges, life changes, or properties in poor condition, the ability to sell quickly and easily is often more valuable than holding out for a higher offer on the open market.

How to Choose a Reputable House Buying Company

Not all cash home buyers are the same. Unfortunately, some companies engage in unethical practices, leaving homeowners in difficult situations. Here are three important things to consider when selecting a company to work with:

  1. Proof of Funds – Can they actually afford to buy your house, or will they back out? Always ask for verification.
  2. Reputation and Reviews – Look for 5-star ratings and testimonials to ensure a company follows through on its promises.
  3. No Bait-and-Switch Tactics – Some companies offer a high price upfront, only to lower it last-minute before closing. A reputable company will honor their original offer unless unexpected structural issues arise.

At My Tennessee Home Solution, we are a veteran-owned, 5-star rated company that values integrity, transparency, and fair offers. We stand by our word and ensure homeowners have a hassle-free and straightforward selling experience.

Sell Your House Fast with My Tennessee Home Solution

If you need to sell your home quickly and without the hassle of repairs, showings, or negotiations, My Tennessee Home Solution is here to help. Get a no-obligation cash offer today!

Wait!

Don't You want a CASH offer on your home?

You are under no obligation to accept our offer!  We are here to take the hassle out of selling your home!