Do you feel stuck in your rundown house? Maybe you’d like to list it, but all the repairs you need to list it are overwhelming.
Have you inherited a rundown house? The sooner you can be done with it the better!
There’s a way to free yourself from the burden of that rundown property. Here’s a closer look at the benefits of selling your house for cash.
Why Should I Sell My House for Cash?
Just as individual situations vary, so do reasons for selling homes for cash.
Maybe you are falling behind on your mortgage payments and need to sell your house fast.
Others want to sell their house for cash to avoid the hassle of listing it. Many people don’t like the idea of strangers traipsing through their home during showings and open houses.
If your house is in need of repairs, cash buyers can relieve you of a LOT of work! Instead of investing time and money to get your home ready to sell, you can sell it as-is to a cash buyer.
Some individuals inherit property they don’t want. If it’s located far away a cash buyer is a quick and hassle-free way to offload it.
How Does It Work?
First, you need to find a cash home buyer. Some cash buyers are individual real estate investors. Others are larger companies. Let’s take a closer look at different types of cash buyers.
Wholesalers won’t keep your house. They’ll find a house flipper or a cash buyer for you. A wholesaler will offer you a fair price for your home in as-is condition. As-is means you won’t have to fix it up before you sell it!
Once you’ve entered into a contract with the wholesaler, the wholesaler finds a buyer. The buyer purchases the home from you and gives the wholesaler a finder’s fee. Think of wholesalers as a cash buying middle-man (or woman).
Selling to a wholesaler is a great way to get rid of your rundown house quickly without any bank involvement. Wholesalers are always looking for a bargain. You’ll likely get 60 – 70 cents on the dollar for your home.
Wholesalers advertise via yard signs and mailers. If you’ve read “Sell Your House Fast for Cash“, you’ve seen them. Be certain the wholesaler you’re working with is a legitimate business person before entering into a contract.
If you’ve turned on HGTV or perused a Target Magnolia aisle lately, you know who these people are. They purchase rundown houses, fix them up, and re-sell for much more money.
House flippers are looking for a bargain. The less they spend on your house, the more they make. If you have an excellent location, house flippers may be willing to pay a little more for your home.
You can expect house flippers to offer 50% to 70% of your home’s actual value.
Not all house flippers sell right away. Some people enjoy living in houses while fixing them up. If they like it, they may decide to stay there for a while.
Buy and Hold Buyers
These people want to buy your house for cash and keep it for rental property. Buy and holders could be individuals or large companies.
Nope, they aren’t robots, but they use robots…kind of. iBuyers (instant buyers) are new to the cash real estate game. They use automated valuation models to estimate the resale value of each property they buy.
Because they’re more volume focused, iBuyers like to buy homes that don’t need a lot of work. If you have a rundown house you’ll likely be better off with another option.
Placing your house up for auction is a great way to be rid of it fast for cash.
Benefits of Selling a House for Cash
It’s important to consider if cash selling is a good option for you. Let’s explore some benefits of selling your house for cash.
Most home buyers will be taking out a mortgage. Banks and financial institutions require homes to meet certain standards before they lend to buyers.
Almost all banks require completion of a home inspection and a home appraisal. This process takes time. If an inspection uncovers something the buyer doesn’t like, they can ask for repairs.
If buyer financing falls through, you are stuck with your house again. This wastes valuable time that could have been used to show your house to other potential buyers.
While you may not get top dollar for your home through a cash home buyer, you shouldn’t have to spend a dime.
Since you aren’t working with banks for credit unions, you won’t have to closing costs.
You’ll also be avoiding a 3%-6% realtor fee by using a cash buyer.
By selling your house as-is, you are avoiding costly repairs and updates. You can let the buyer remove that floral 1989 wallpaper from the laundry room.
Any cash buyer who asks you for money upfront shouldn’t be trusted. Check with the Better Business Bureau if you’re unsure about a potential cash home buyer.
There are so many steps to selling your house in a traditional manner. First, find a realtor. Next, make all necessary fixes and updates to get your house show-ready.
Now you have to find somewhere to be when people want to see your house. This might be fun for a little while, but getting the boot from our own home can get old fast.
Once you get an offer, you need to decide if you want to take it. If you can agree on a purchase price you are still dependent on buyer financing. If a buyer changes their mind or financing falls through, you’re back at square one.
Selling your home for cash is hassle-free in comparison!
Many legitimate professionals make an honest living buying homes for cash. Unfortunately, the cash for homes market isn’t scammer free.
Cash home buyers don’t need to hold any certifications or licenses. It’s up to the home seller(s) to vet their audience.
It’s a Scam If…
If you are feeling pressured to sell your home, take a step back and research the cash buyer.
If a buyer asks for personal information upfront, run away, hang up, and report them to your state’s attorney general.
If a home cash buyer comes up with a reason you need to pay them, they are not legitimate.
If a potential buyer spills a lot of detailed financial or personal information to you, it’s probably a scam.
It’s Legit If…
A legitimate cash buyer should let you have a say in your moving date and closing date. They should work to customize the sale to your needs.
A legitimate cash home buyer will give you the time you need to make important decisions.
Trust your gut. Like the guy who refused to use band-aids…avoid a ripoff!
A great way to make sure you’re dealing with a scrupulous cash buyer: as questions! Most scammers will become impatient or inconsistent when presented with a lot of questions.
Ask for references. Your cash buyer should be happy to direct you to happy clients.
Ask why they’re in the business. Real estate investing is a money maker. That doesn’t mean your cash home buyer doesn’t care.
Many cash buyers enjoyed getting to know their sellers and genuinely want to help. Don’t let one bad apple keep you from the orchard. There are still good people out in the real estate world!
Sell Your Rundown House for Cash
Now that you know the ins and outs of cash home buying you can make an informed decision.
Selling your house for cash doesn’t have to be complicated. Many individuals and companies advertise they buy homes for cash.
Are you ready to sell your house for cash? Give us a call or fill out the form below. We’d love to partner with you.
Maybe you’re thinking, “I’m not sure I want to sell my house fast.” No problem! We’re here to answer any questions you have about selling your home for cash.