There comes a time in every person’s life when you have to move places of residence. It could be for work or to find a fresh start in a new place, but for homeowners, the process of moving out can get complicated.
Thousands of people put their houses on the market every year. In 2019, over 5.34 million houses were sold in the U.S, making competition fierce for hopeful house sellers. In an effort to get a sale, you may find it necessary to make structural or cosmetic renovations to your house. You would also have to account for your agent’s commissioning fee, inspection contingencies, appraisal concerns, as well as any financing issues you may have.
That is if you’re following the traditional route of selling with the help of a real estate agent.
More and more home sellers are opting to avoid the stress of a complicated selling process by selling directly to cash buyers or real estate investors, cutting down the time you spend waiting for the perfect buyer to come along. The quicker process could really come in handy if you’re in a hurry to move out and move on.
Opportunity investors such as these usually advertise the type of seller profiles they’re looking for: people who can’t put up listings, are going through a divorce, or are moving because of work.
But while selling to cash buyers makes house selling convenient, it certainly isn’t for everyone. Because cash buyers are typically real estate investors, they’re more invested in turning a higher profit with the property they buy. They would buy your house in the state it’s already in; no expensive renovations or upgrades are needed, mainly because they intend to make renovations to the estate themselves.
What it would mean for you as a seller is that it leaves little room for price negotiations. If you currently have a mortgage, cash buyers will likely want to be informed early on how much it is and would base their offer on it. It’s not uncommon for them to match their offer to whatever your remaining balance with your mortgage lender is without room for negotiating a higher or lower price. Most cash-for-homes companies only offer about 50% or 70% of a house’s actual market value, looking to spend as little as possible on a purchase in exchange for a quick, no-frills transaction.
This is why when you deal with cash buyers, it’s a good idea to have someone with your best interest at your side. You can limit the risk of your transactions by checking their credentials and looking for a well-established investor whose place of work is easy to verify if at all possible and check listings for any blacklisted or known scam buyers. But when conducting transactions, try not to make any before the closing date and always have a closing agent with you. If you can consult with an attorney throughout the process, you can avoid possible legal pitfalls and protect your interests.
Individual investors, in particular, don’t typically need licenses to legally operate. When dealing with a cash buyer not representing any kind of company, practice documenting everything and keeping receipts.
Whether you choose to sell with the help of a real estate agent or directly to a cash buyer, be thorough in your research so you can go with the method that best suits your needs. We buy houses at SnapCashOffers.com. For more information, contact us today.