​Have you ever wondered what the "We Buy Houses" sign is all about?

What are these "We Buy Houses" signs everywhere? In nearly every city in the USA, the "We Buy Houses" signs stuck in the ground on street corners? Well, stop questioning, this is what they are and why you keep seeing them. Sit back and relax!

Recently, I watched a video on YouTube that broke this down into small bite-size pieces. Therefore, I thought this would make a great Blog post to break it down for people to understand what these "We Buy Houses" signs are.

The reason for these signs is to attract people who NEED to sell fast their house fast. These signs are called Bandit Signs. These signs are likely to find distressed sellers or people who don't want to sell the traditional way. The purpose of the "We Buy Houses" signs is to attract sellers who are eager to sell and don't mind taking a discount to sell quickly.

But whoʼs buying these properties? These are the three main types of buyers:

First, the wholesaler. They will evaluate the property and negotiate a price to buy the house, usually put an assignment clause, allowing them to transfer/assign the deal and charge a fee for being a middleman.

The second type of buyer is the individual investor. These are people like We Buy Houses Arizona, who often cut out the middle man and cut out the competition. These sign are designed to drive phone and website traffic. They place these "We Buy Houses" signs to buy properties directly from the homeowner, saving them time, commission, and hassle of selling and listing the property. The homeowner will sell the property at a discount because they have the convenience of not dealing with a Realtor and paying 6% plus waiting for a buyer, appraisals, repair request, home inspections, etc. etc. etc. The investor can save on all of those costs by making the sale as efficient as possible without unnecessary expenses.

The third type of "We buy houses" signs are larger companies who typically give a quick close, cash offer and want to turn a fast buck. They can usually provide a cash offer within 48 hours and close within a week or two. In exchange, theyʼll typically want a discount of 10-40% of the market price. Once they buy the property, theyʼll renovate the property and put it back on the market for a quick profit. These companies are often very organized, and system minded when it comes to locating properties and making offers. Some of these larger companies are under scrutiny these days, as their business model does not protect their shareholder/investors.

Like them or hate them, these little plastic signs help put food on the table for some eager real estate investor. The "WE BUY HOUSES" signs are simply a tool to find motivated seller leads. And that is precisely why you see "WE BUY HOUSES" signs posted around your neighborhoods and street corners.