More than ever before, the traditional real estate market has been turned on its head. Gone are days of realtors serving as gatekeepers to listings and buyers: online and commission-free listings continue to create a transparent, consumer-driven market.
Traditional transactions, involving mortgage brokers and banks, are no longer a given. Many buyers are turning to non-bank lenders and are becoming more and more open to cash transactions.
Selling your home for cash is a great way to move it quickly without getting tied up in red tape. If you are interested in selling your home for cash, here are a few tips.
Don’t Pour Money into Renovations
When you sell your house on the traditional market, either through a realtor or through public listings, you typically want your home to look its best and be in the top condition to attract potential buyers. Simply staging a home with nice furniture and a fresh coat of paint can drive up the price. Making sure major repairs and renovations are complete can be the difference between selling right away and having your home sit on the market for months.
However, this isn’t necessarily the case with cash sales, especially when you are selling to an organization that specializes in buying homes for cash. Though it may not hurt to spruce up your home for a cash buyer, it’s often not necessary; those buyers are often willing—or even consciously looking—to fix the home up a bit or do a complete flip to save money or to turn a profit. Before you spend precious time and cash on renovating your home to sell it, consider instead opting for a deep clean and an honest assessment of its condition by a potential cash buyer.
Sell Within Your Community
Sometimes, when taking part in a cash sale, homeowners end up fielding insultingly low offers, either because buyers feel that paying cash entitles them to an unrealistic discount, or because the buyers are from a large organization with headquarters in a different area, so their offers aren’t calibrated to the local community.
When selling your home for cash, do your best to find a local buyer. They will be more familiar with the local market and will have a better handle on the value of your home, so you won’t be wasting your time on inappropriate offers. A local buyer is also invested in the community and their reputation within it, so you’re more likely to receive better service and a more cooperative transaction.
Find a Buyer Who Works with You
As mentioned, some cash buyers think that because they are paying cash, you should be willing to accept a fraction of the value of your home. Though you can expect a cash buyer to make a slightly lower offer, which is completely worth your while if the turnaround time on the transaction is fast, the offer shouldn’t be unreasonably low.
Find a buyer who won’t hold their cash over your head and try to use it to treat you unfairly. Your buyer should be fair and willing to work with you, not against you.