You own a house. And you need to sell it ASAP.
Maybe a relative has died and you inherited the house. Maybe you had always planned to renovate but then you got that out-of-state job offer before you could. Heck, maybe a combination of both things happened.
But regardless of how you got there, you needed to offload this property yesterday. If this is you, cash house buying services could be a dream come true.
Should you be thinking about accepting a cash offer? Can you be sure that you’re making the right decision for your property and your wallet? Keep reading to see our list of factors to consider if you and your loved ones are thinking about selling houses for cash.
1. The Amount of Work Your House Needs
Be honest here.
Do the repairs on your house really require the skills of a general contractor? Or are you some tightened doorknobs and a fresh wallpapering away from putting your home on the market?
When you look through the generally accepted pros of selling homes as-is, the appeal is generally the fact that you can look at all the upgrading costs and labor required for your house and say, “I don’t need to do that.”. But the underlying assumption there is that your house is in serious need of repair.
Not everybody can fix up a house on short notice. And many people would struggle to take on a major renovation project. But if your house only needs a few tweaks here and there, you may be better off taking a weekend and making the changes yourself.
2. Your Selling Timeline
If there’s one thing that cash home buyers are known for, it’s the fact that they’re in the business of buying and selling homes quickly. What this means is that you can go from “I’d like to sell my house.” to “I’ve got the cash in my bank account.” in seven days or less.
Although sites like Zillow may be able to tell you how long houses stay on the market, the number they’re giving you is still just an average. You have no control over whether your home will be the one with multiple buyers out-bidding each other to snap up or if buyers will be overlooking your property until someone decides to make an offer.
For sellers who have a bit of time on their hands, maybe it’s worth holding out for the best offers available. But if you’re trying to offload your property in a hurry or you’re fighting down thoughts like, “I don’t want to pay for two mortgages at once!”, you might not have the luxury of waiting for five, six, or seven weeks.
The fast turnarounds associated with cash buyers are legit. But it may not be in your best interests.
3. Your Local Real Estate Market
Two buyers can have the exact same amount of money to spend on a property. But a budget that could buy you a comfortable home in Texas might not be able to buy you a cereal box in New York City.
Companies that make cash offers are looking for cheap homes for sale. In many ways, they have no incentive to do your market research for you. And what that means for sellers with a touch of won’t-somebody-please-buy-this-house-itis is that buyers don’t necessarily have an incentive to offer a fair house price.
Let’s say you’re in the market for an awesome new pair of running does. If you walked into a store and saw a pair of Nikes going for 80 percent off, would you give corporate HQ a call and say, “These sneakers are usually selling for $75 more than this.”?
Doubtful. At that point, you take the bargain and you quite literally run with it. And if you don’t know what houses are selling for in your community, you could find yourself selling your property for significantly less than its worth.
4. The Money You Can Afford to Spend
Everyone knows that buying a house is a major purchase. But nobody talks about how selling houses quickly can often cost you money upfront as well.
You’ve got staging costs to cover. There are expenses involved with repairs, consultations, and real estate fees. And if there’s more work that needs to be done to nudge buyers forward, you may have to put in even more money upfront.
If you’ve got extra funds sitting in the bank, investing in your property might not be a big deal for you. But if you’re strapped for cash as it is, the easy sale and the fact that you don’t have to pay to make your house market-ready can be very strong reasons for you to consider taking a cash offer.
5. The Reputation of the Company You’re Selling To
At the end of the day, anyone can put up a few signs and say that they’ll offer you a fair house price. But not every cash buyer will be able to deliver on the lofty promises they make.
Even if your property wouldn’t look out of place in a “cheap homes for sale” ad, your house and your land are easily worth six figures. You don’t want to sign a contract with a company that’s unstable or otherwise unable to pay you the agreed-upon price.
Thanks to the internet, you never have to go into real estate sale agreements blind. You can search online, see what people are saying, and get a sense of the trustworthiness of your buyer.
Are Cash House Buying Services Right for You?
In theory, there’s a lot to like about cash house buying services. You don’t have to fix up the house and you don’t have staging costs or real estate agent commissions. And depending on who you’re working with, you could have cash in your bank account as soon as next week.
But although cash buyers do have their appeal, it’s important to sit down and ask yourself whether or not these offers are the best way for you to offload your property. If you consider the factors we’ve just listed, however, you can have a clearer understanding of your selling options.
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