How is a Cash Offer Price Determined?
Many people are led astray by the belief that selling a house through a real estate agent is the best—maybe the only—way to go. The truth is, you have numerous options for what to do with your unwanted property. You can keep it rent it out. You can sell it yourself (“For Sale By Owner”). You can also get a cash offer directly from a real estate investor.
Why to Sell Your House for Cash
At PropertyLark, we buy houses for cash and we want to give homeowners as much information as possible so that they can make smart selling decisions. People often frown upon the thought of selling for cash, but the truth is there are many distinct advantages to a cash home sale. It may depend on your financial situation and how much time you have to get the property sold. Often, it’s just a matter of personal preference for people who don’t want to go through all the hassles of a “traditional” real estate sale involving agents, brokers, lenders, home inspectors, and of course all those looky-loos who want to look at your home with no real intention of making an offer.
Will I Get Less Money?
The biggest concern most people have when considering a cash home sale is the selling price. They tend to think they will end up getting much less for their home. Though the final sales figure may be lower, that doesn’t necessarily mean you are walking away with less money. In some situations, a cash sale can be more profitable than a traditional one by the time you factor everything in. You have to add up the extra expenses such as repairs, agent/broker commissions, inspection fees and ownership costs you will still be paying during the time it will take to sell a home (property taxes, mortgage payments, insurance, utilities, etc.). A cash sale can be done in weeks whereas a standard sale usually takes months to complete.
How the Cash Offer Price is Determined
So, how is a cash offer price determined? Every investor may approach things a little differently, but we are glad to tell you exactly how we do it at PropertyLark.
First, we gather your house information. When you request a cash offer, you will be required to provide your contact information and the address of the property you wish to sell. We then look up the house and perform targeted research and analytics. We compare other properties in your neighborhood that may have sold recently. We look at overall pricing trends in your area. We look at the details of the property (square footage, yard space, rooms, features and more).
This research will allow us to set what we feel is a fair cash offer price that we will send to you within 24 hours of your request. However, it is very important to understand that the initial price we offer is contingent on an in-person inspection of the property. All those details will be specified in the offer contract itself. Every so often, we may buy a house sight unseen under special circumstances.
What if Repairs Are Needed?
We don’t expect every home to be perfect and you don’t have to worry about cleaning it or making the repairs. We just want to look at key structural elements and things that we may need to repair after we purchase it. We always expect there to be some work that needs to be done and we buy every property in as-is condition. If major repairs are needed beyond what was disclosed upfront when you requested the offer, then the price may need to be altered.
In most cases, however, the original offer will stand as long as there isn’t anything too significant found. It is best for you to be as upfront and honest as possible about the condition of your property when submitting your information. You can make additional notes when you fill out the offer form. This avoids any complications and makes sure the cash offer is set at the correct price from the start. This streamlines the process and helps the sale close as quickly as possible.
How Long Will it Take?
One last thing to note is that you are able to set your own closing date. That generally won’t affect the offer price at all, but it will impact how quickly we close on the property. If you need to sell the property as soon as possible, we can finalize the deal in as few as seven days. If you need more time to move out, just let us know and we’ll set a closing date that works for everyone.
If you are looking to sell your house, it never hurts to at least hear a cash offer from PropertyLark. You can ultimately choose to sell it however you want or not sell at all. There are no obligations and you can get a free cash offer within 24 hours. Why not try and see?