As of August 2020, most homes in the US stayed on the market for 56 days, from listing to closing. That may still have been 8 percent faster than a year prior, but it doesn’t mean you can’t upload your home even faster. One way to do so is to look for an all-cash offer for your home.
Opting to sell your house for cash means working with entities who buy your home outright and all at once and without needing lender financing. These types of deals are on the rise in America, with 25 percent of all house sales in April 2021 being all-cash deals. That’s 15 percent more than a year ago.
If you’ve been considering selling your home for cash, there are a few things you need to do so you get everything right. Here are five of them.
Know Your House’s Value
It’s difficult to know how to maximize profit when selling your home without first knowing its true value. Fortunately, there are plenty of sites that can help you determine your home’s value.
Note that different websites will most likely give you different figures for your house. However, these amounts won’t vary considerably, and they give you a good idea of your home’s value.
Of course, you can still opt to work with a real estate agent to get a more accurate idea of your home’s value, based on comparable homes recently sold in your area.
Once you sell your house to a ‘we buy homes’ company, expect them to make an offer that’s on the lower end of your price range. That’s because they’ll most likely be buying your home ‘as-is’ and need to sell the home fast for a discounted price.
Determine Whether to Sell ‘As-Is’
Most companies who offer cash for homes buy the home ‘as-is’. That means that the buyer buys your home in its current state, and the deal doesn’t include you fixing any issues in the house.
Of course, you still have a responsibility to disclose any known problems with your house. The laws about disclosure may, however, vary depending on state. But you’re mandated by law to answer questions about your home honestly.
You may opt to fix certain issues with your home, such as asbestos, a leaky roof, or structural problems to improve your home’s value. But that means slowing down the overall selling process. It also means you’ll be putting money into your house before you sell it.
If selling your home fast is your priority, avoid the hassle and expense of fixing, list it ‘as-is’.
Research House Buying Companies
One of the first things you’ll realize when you opt to sell your house for cash is that there’s a multitude of companies out there who can buy it. But not all house buying companies are equal. Some of them are bad apples out to take advantage of unsuspecting sellers.
That’s why you need to take your time to research home buying companies before you decide to work with one. Generally, you want to work with a reputable company that offers you a reasonable price for your property. You also want the company to pay for your home within a timeline that makes sense to you.
Avoid Contingency Clauses
Many house contracts have contingencies. These back-out clauses are meant to protect the buyer but can be bad for you, the seller.
An example of a contingency clause is that the offer is only valid provided the buyer’s home sells within two months. Another example is that the offer is only valid if the home inspection doesn’t reveal a cracked foundation.
A real estate deal with contingencies has a chance of falling out of contract. One of the best things about selling your house for cash is that you get to avoid this extra obstacle, depending on the specific buyer you’re selling to.
Know the Common Scams To Avoid
Unfortunately, scams can happen when you’re trying to sell your home for cash.
Many sellers who are looking to sell their homes quickly are doing so because of circumstances or life events that push them to do so. It could be that you’re facing a foreclosure, bankruptcy, or going through a divorce and need a quick, no-fuss deal on your home. Home buying companies realize this, and some may look to cash in on your circumstances and scam you.
As we pointed out earlier, you need to do your homework on your potential buyer before making a commitment. Realize that an investor doesn’t require a license to operate. Research a company’s reputation to stay safe.
Be on the lookout for scams like being asked to pay any money upfront. If the company requires you to pay an application fee before they do business with you, it’s a major red flag.
Monitor your credit history carefully to ensure no one takes a second mortgage on your property. Some shady companies have been known to take away the seller’s equity and disappear without a trace. That leaves the seller in a more desperate state than they were when they opted for a cash option.
Sell Your House for Cash Without Hassles
Selling your house for cash can help you skip hassles that come with stagings and showings. It ensures you get the property off your hands as quickly as possible. Do enough research on your home’s value, as well as the company you’re selling to so that you get the best deal possible for your home.
Are you interested in selling your home for cash? Please, contact us today and get the best offer in the region.