Dave Ramsey: Use Caution When Using a ‘We Buy Your House Now’ Company
“We Buy Your House Now” companies have been more and more abundant over the past few years, and while these organizations might be helpful for some sellers, financial expert and host Dave Ramsey urges caution when using them.
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When asked by a caller on his namesake financial show if these companies are a scam, Ramsay recommended other options instead — suggesting the caller would lose money with a “We Buy Your House Now” group.
“They’re not a scam, but they’re buying the home to resell it at a profit — which means they have to buy it from you at below retail,” Ramsey said in the October 2023 episode.
In turn, Ramsey told the caller that if he was not “desperate,” then he recommended not using one of these companies.
Instead, he suggested an alternative. “Here’s what you need to do, you just need to be patient and do a contingency sale,” said Ramsey.
As Ramsey explained in a Ramsey Solutions article, in some instances, sellers need to sell their house before they can buy a new one.
“That can be kind of rough for the seller, who might miss out on another offer while they’re waiting for you to close on your old house. Because of this, sellers usually attach a kick-out clause to this contingency. This is basically a sell-by date so the seller can move on if you can’t get your current house sold,” he wrote in the article.
In turn, Ramsey argued in the article that in some instances, it might make more financial sense to sell the house first, and then rent another for some time.
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“That way, you won’t wind up in a situation where you’re making two mortgage payments — and you won’t have to worry about this contingency at all! Win, win,” he added.
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