It happens for all kinds of reasons: job layoff or relocation, mortgage payments just becoming too much to handle, the need to downsize. Whatever the reason, you may now be in the position of needing to sell your house fast for cash.
If you want or need to sell your home sooner rather than later, a cash buyer may be someone you actively want to seek out. Understanding the process and how cash investors often work can help.
How to Sell A House Quickly For Cash
There are different kinds of cash buyers. Retail cash buyers will typically work through real estate agents. They’ll simply make the offer in the usual manner with the help of their realtor, indicating they have cash to make the purchase and don’t need to get financing through a 3rd party lender. Real estate investors, on the other hand, are a different kind of cash buyer. They usually prefer to buy properties directly, rather than with the help of a realtor, which allows them to avoid paying the commissions associated with using a realtor. This short blog focuses on selling your house to a cash investor.
Title/Deed
If your home piques the interest of a cash buyer investor, they’ll want to draw up some sort of purchase-and-sale agreement that states they intend to purchase the property at a certain price, and close on a specific date. They’re likely to reach out to a title company in order to conduct a title search to make sure the property title is clear, with no liens or other encumbrances.
Offer
A buyer offering cash will feel they have more bargaining power because the sale doesn’t depend on a 3rd party loan, and the inevitable wait time that comes with financing approval. There’s less risk in the deal falling through if the buyer is bringing cash to the sale. Remember, as the seller, you can always make a counteroffer if the first offer doesn’t suit you. Good cash buyer investors will want you to be pleased with their offer and will be seeking a win-win deal. Obviously, it has to be a good investment for them, but most investors do want to have the buyer be happy about the offer and the conditions.
Inspection/Appraisal
If an offer is accepted, the person buying the house from you may want an inspection and possibly an appraisal done to make ensure there are no big problems, and that property is worth the amount close to the amount they’re paying for it. Most cash buyer investors have good experience assessing property conditions, and they may feel they don’t need to request inspections or appraisals. Some are open to taking on more risk themselves by not requiring inspections, allowing for the sale to happen more quickly and easily. But, others may want to take this step to have a more thorough understanding of the property before making the purchase. As you might expect, different investors operate differently!
Closing
Since this is a cash deal, you and the buyer can set the closing for a date when it’s most convenient for both of you since the deal isn’t dependent on outside financing. Most cash investors are pretty flexible and will do what they can to accommodate your schedule.
Here are a few steps you can take before selling your house for cash.
Price
Pricing your house correctly is perhaps the best move you can make toward making a fast home sale for cash. Sales price is a key factor in attracting the attention of your target market. If the price is too low, buyers will think something is wrong with the house. If it’s priced too high, it may sit unsold for a long period with the same result. It pays, then, to check out comparable house values in the area, and price accordingly!
Keep in mind that since cash investors don’t always use realtors, they usually expect to reap the benefit of not having to pay realtor commissions. And, they are often most interested in buying homes they can add value to before they resell or rent the property; so if your home needs any significant updates or repairs, they’ll probably be quite delighted to purchase the property as it is, saving you time and money in making the repairs, while allowing them to add value by doing the upgrades themselves before they rent or resell it.
Curb Appeal
The story that your home tells from its street outside can make a big difference in the sales price you’re able to get. It’s well know that curb appeal creates the critical first impression and causes potential buyers to stop, look, and hopefully, eventually, come in the door. Sprucing up the yard and the home’s exterior can be worth your time and even some expense. It doesn’t always take a lot, really – maybe just some lawn clean-up and minor landscaping, a little roof repair, touching up paint, and dressing the windows. If you want a higher offer for your home, especially if you’re targeting retail cash buyers, give this some serious consideration. If time and money are issues, selling to a non-retail investor may be a great option. As we’ve mentioned before, they like to add value to the property by doing that work themselves.
Deal Sweeteners
Sometimes it pays (literally!) to sweeten the deal to make your house more attractive to buyers. The tried-and-true principle of reciprocity tells us people are willing to give more (with the sale price) if they feel they are getting something in return (the deal sweeteners). For example, you might want to consider paying some or all of the closing costs. Or you could offer to provide a transferable home warranty, which may cover major appliances and/or the HVAC systems.
If you need to sell your house quickly, hopefully some of these tips and steps will help you close a cash deal. There are professional home buying companies like ours who have financing lined up in advance and/or prefer to use cash for purchases. We always appreciate knowing about homes that may be coming up for sale, especially those we can add value to by making updates and repairs, and taking that work off the seller’s hands. March 2021 is definitely a seller’s market, so you have a good opportunity to sell your home for a good price right now. Depending on your situation, it’s great to know your options, whether it’s a traditional path with a realtor or a less traditional path of selling to a cash investor. In either case, we wish you every success!