5 Tips for a Better Cash Home Sale
Whether you are in a state of financial distress, have a personal situation that calls for a quick home sale and move or you just don’t want to deal with the time and hassle of a “traditional” home sale, you may be considering selling your house for cash. There are plenty of cash home buyers and investment companies out there. How do you ensure you are making the right decisions during your cash home sale?
Here are a few helpful tips from PropertyLark:
1. Know What Your Home is Worth
Though you will not necessarily get top dollar from a cash home sale, there are many benefits that you may prefer. In some cases, you may still come out further ahead financially by eliminating the time and expenses of a traditional sale through a real estate agent. Still, it’s a good idea to do some research on your own and get a basic understanding of your house’s market value. Zillow is definitely a good place to start, but it’s not always 100% accurate or realistic to current market conditions. Look at recent sales in your neighborhood and comparable homes in your city. Get a general idea of your house’s open market value and that will help you make smarter decisions in a cash sale.
2. Do the Math
Once you have an idea of your house’s value, you can actually run some numbers. You can usually expect 4-6% of the final selling price to go to real estate agent and brokerage commissions. There are other standard closing costs, inspection fees and selling expenses that you can research and add up. If repairs are needed before you can sell the property for max value, factor those costs into your totals. In addition, you have to project the sale to take at the very least 2-3 months to complete (usually closer to 6 months on average). You’ll have homeownership expenses during that period, including mortgage payments, insurance premiums, utilities and property taxes. Add up all these totals and subtract that from a conservative open market selling price estimate. Then, get no-obligation cash offers from cash buyers like PropertyLark to see your real-world cash value. Do the math and compare the results. You might be surprised at how a cash sale at a lower price compares to a traditional sale at max market value.
3. Understand the Time
As we mentioned, the average home sale through a real estate agent will take upwards of 4-6 months. This includes prep time, repairs, marketing, reviewing offers and the final escrow process. If time is not on your side, then a quick cash deal may make more sense. A cash deal can be completed in days or weeks rather than several months. Get a full understanding of your situation and figure out your ideal timing to get your home sale completed.
4. Do Your Research
There are many cash home buyers out there, from professional companies with big marketing campaigns to the small local investors with hand-written sides on the side of the road. Research these buyers and find one that you are most comfortable working with. Even in a simplified cash deal, trust is so important. You don’t have to accept the first offer that comes your way. If any cash buyer asks for money upfront (an application fee or something like that), do not pay it. A cash deal should not require any additional expenses out of your pocket.
5. Consider Home Repairs
Most cash home buyers are looking for investment properties to fix up and flip or buy and hold as rentals. Therefore, they are willing to buy houses in as-is condition. They are paying a little less because they have their own plans for the property, whereas an open market buyer will offer more for a house that is fixed up and looks great. If you are planning to sell for top dollar, expect to make any necessary repairs to get the best return on your investment. If your house needs a lot of work and you don’t want to invest that time and money to fix it up, then a cash home sale may be your best option.
If you are looking to sell your house and are interested in a cash offer from a reputable home buying company, just fill out the contact form on any page of the PropertyLark website. We can get you a no-obligation cash offer within 24 hours, and we can also help you explore other selling or seller financing options if a cash deal doesn’t make the most sense for your situation. We’re here to help you make smart home selling decisions.