Things To Know Before You Sell Your House For Cash
Cash home buyers are not a new thing, traditionally they were located by real estate agents or connections, sometimes having a reputation as an easy to reach and interested buyer for a specific neighborhood. In time when technology and marketing creativity grew.
The cash home buyer has appeared into the forefront of buying and selling real estate.
From “we buy ugly houses” signs and stickers near traffic lights to websites and facebook pages, some are even bold enough to call your phone and leave messages, ringless messages or texts to attempt to get you a cash offer for your home.
While some of these annoying and illegal methods of contact shouldn’t be tolerated. The upside to home sellers is that they can now seek options before paying big commissions. Its always nice to have options.
The Original CarMax – The Cash For Houses Operator
The cash buyer, now often a cash buyer investment group are individuals or companies that buy your house for cash. Without loans, appraisals and all the items that bring the speed of a traditional sale to a slow crawl at best. The process is fast, and without much drama on the buyers part.
Think of these companies like when you want to turn a car into CarMax. They take it with the sticky seats and bumper dings, for a small discount. The convenience and their ability to do repairs in a scaled and cost effective manner allows them to profit from these volume deals with low margins.
Disclaimer* It’s not for everyone
If your home is beautifully updated, in great working order and generally would be a great home for someone to buy and move right into. Chances are selling your house for cash will not get you a higher value for your home.
Cash buyers are looking for properties to make improvements, to upgrade the property and increase the value of their investment.
If your home isn’t a fixer upper property. You might not want to sell it for cash.
The iBuyer has existed since the start of real estate but the name and title has been placed onto the large Wall St. backed companies like Redfin, OfferPad, Zillow and Homelight. Each have their own models but they have large sums of Wall St. cash ready to deploy once they understand a market and feel ready.
These buyers tend to pay a great price for the specific properties they want, and will not even make an offer if the home is outside of their buying criteria.
This can be great if you have what they want, but things get quiet if you don’t. They tend to be ran regionally by offices that are former staff members of the big money backed house flipping groups that came through markets in 2009-2014.
The Local Buyer
This buyer is focused on their market and is working hard to be visible, see deals, make offers and buy homes fast. They could be focused on several investment models.
For long term holds and being used as rental properties or as a short term flip. Ready to be back on the market after a complete renovation.
Each individual local home buyer will have different types of homes they are hoping to buy. In some cases if you have a very unique property, it could be best to list the home on the open market to command the most attention.
Understand How It Works, Selling Your House For Cash
Cash Buyers Will Buy Your House In As-Is Condition
This has to be one of the best features to selling your home to a cash buyer. You don’t have to make repairs. They want to buy an outdated house and improve it.
So they don’t want you making any updates, they are going to take care of everything and will also buy your house without you taking out the trash!
Occupants and Value…
Tenants can be one factor that is a case by case basis for many cash home buyers. With current rules and restrictions on evictions. Buyer are being much more careful in what they buy and who is still there.
Tenant occupancy is likely the largest determining factor in the value of many properties simply due to the costs and challenges a property owner can face evicting a bad tenant.
Fast Inspections and Decisions
The inspection process is very straightforward. In most cases a cash buyer can produce an offer within hours of inspecting a property.
The instances where that isn’t possible is usually when there is a serious issue that requires a specialist, something like a cracked foundation or plumbing issues come to mind.
No One To Slow Us Down
There are no appraisals or hoops to jump through to complete financing. When you sell a home for cash there are no lenders, banks, appraisers or underwriters to slow the process down. This feature is by far one of the most convenient to a cash sale of your house. Banks can really drag things out.
Contingencies Are Short
The contingency period is typically measured in hours, if not days when dealing with cash for houses in San Diego. A good cash home buyer can create an offer within hours of visiting a property.
During that same visit, they can usually complete all their required inspections to be satisfied in writing a no contingency offer.
This means the “dating” process of the sale is incredibly fast. Within hours of writing a contract a seller could agree to sell and be in the final stages of clearing title and funding escrow. That is awfully nice and convenient.
Its Fast, Really Fast To Sell Your House For Cash
Taking what is normally a four to eight week process and diluting it down to buy a house fast for cash in a week is impressive. To do this, house buying companies are experts in their market and construction costs.
Typically buying and renovating many homes at the same time. They have economies of scale and expertise in estimating repair costs.
That allows them to be very competitive in their offers and also very accurate.
Know Your Options
While its not for everyone, when wondering, should I sell my home for cash if you have a fixer upper house and you can locate a cash buyer. It can often be similar to selling your car used versus trading it in.
Since you found the buyer you don’t have to pay any commissions.
The beauty of the internet and its ability to connect people has created a wonderful situation where buyer and seller can locate each other without needing the middleman