According to Zillow, the average home is on the market for approximately 68 days. In 2010, that number was 148 days. The time it takes for you to sell your home will vary based on its condition, location, and the amount of inventory (houses like yours) for sale.
There are situations when bad things happen to good people and you may need or want to sell your home quickly. In this case, you may want to explore cash home buyers as a solution.
Read on to learn how selling your house to a cash home buyer works to determine if this is the right solution for you.
How Do Cash Home Buyers Work?
There are situations when selling your house for home makes sense. You may have a rental property that is sitting vacant and you want the capital for something else. Sometimes you inherit the real estate from a loved one and want to sell quickly to settle the estate.
Often times you may have repairs that you don’t have the funds to address, or you have tried to sell your house and it has failed. All of these are common reasons to seek out a cash home buyer.
Below describes the typical process.
Consultation
Regardless of your situation, you are the customer and you should feel like you are treated fairly and with respect. Reputable cash home buyers typically speak with you over the phone to get all the basic information and then do a walk through of your home. The goal is to find the right solution for your unique needs.
The Proposal
After the initial consultation, you will be presented with a proposal. This will include the offer for your house and the speed of the house closing process. It typically 1 to 2 weeks to finalize the sale at which point you will receive the cash for your home’s sale. Reputable investors use title companies and standard sales contracts.
The Next Phase of Your Life
The next part is relatively easy. You will close on your house and get the cash you need to start the next chapter of your life.
Click here for some Frequently Asked Questions about how cash home buyers work.
Benefits of A Cash Sale
Below are some of the benefits that are associated with a cash sale.
No Fees
When you sell a house there are closing fees, title fees, survey fees, realtor fees, etc. When you sell your home to a cash buyer, they typically cover all the fees.
There May Be an Option To Rent
In some cases, you may have the ability to rent the home from the cash buyer after it is sold. This is called a lease-back and is for a predetermined amount of time. Lease-backs typically provide enough time for you to arrange movers and find a new place to live.
Sell The House As-Is
If for reason, your house needs significant repairs, this may be the right solution for you. Home repairs can be expensive and take time to complete. Selling the house in its current condition eliminates the hassles and costs of managing the repairs.
Speed
Selling your home on the real estate market can take time. If you are pressed for time, selling your home for cash is a much quicker route.
This may be important if you are facing financial hardship or if you need to relocate quickly and want the equity in your house for your move.
Convenience
In a traditional sale, you will spend time with real estate agents, financial companies, title companies, and the list goes on. In a cash sale, the entire process is managed by the buyer.
What to Look For In a Cash Home Buyer
Cash house sales are rising in popularity, so do your homework before you sign on the bottom line. More and more people are skipping the hassles of the “traditional selling process” and opting to work with investors instead of realtors. The following are things to investigate and red flags that should cause you to pause.
The Company’s Reputation
Check out reviews of the company online. Ask to speak to previous customers. do research with the Better Business Bureau. Although cash sales are often used because they are quick, take the time to do your research on the company you are working with. Just because you see a billboard or hear an ad on the radio doesn’t mean you’re dealing with a reputable person or business.
Unless you’re facing a pending foreclosure date, a reputable investor won’t rush you and their offer doesn’t expire at midnight. Foreclosure means you HAVE to act quickly and you must keep in mind that time is of the essence. Outside of foreclosure, a reputable investor won’t rush you into signing a contract. They will follow up with you from time to time, but they won’t pressure you into selling your house.
Red Flag – Buyers that Don’t Want to See Your House
This is a red flag. A reputable cash home buyer always wants to visually inspect the property.
Red Flag – No Worries, We Can Do All this by Email
This is a common scam run by individuals out of the United States. While it is common to talk to a cash home buyer over the phone or email as you finalize the deal. You should meet them in person before you sign on the bottom line.
Red Flag – An Offer That Sounds Too Good to Be True
We all know the saying, “if it sounds too good to be true it probably is.” This saying still rings true today. If someone is paying top dollar or their offer is significantly higher than everyone else’s, there is probably a reason. Often there are hidden fees, costly repairs or other reasons you may get a “too good to be true” offer.
Also, many investors shop the deal around once they’ve gotten you under contract. They don’t actually have the funds to close on your property so they look for someone to assign the contract to. If they can’t find someone, they will back out of your deal or try to negotiate a last minute price decrease. This often leaves the seller in distress and in a position where he/she can’t start over with someone else.
Trust Your Gut
Ever get a bad feeling about someone or something? Have you ever made a decision and then felt like you should have trusted your gut? Trust your gut when deciding on an investor. If they are fast-talkers or focus more on taking your house rather than solving your problem, it may be a red flag. Trust your gut and feel good about your decision.
Is A Cash Home Buyer the Right Solution for You?
You should be honest with yourself about your current situation. You should also take some time to do your research on all the options you have available.
Then grab a piece of paper and create a pro and con list for all your options. Cash home buyers are the solution for many people. However, before you sell your home to one, make sure you’ve done your homework.
Are You Ready to Sell your Home to A Cash Buyer?
We are cash home buyers – Veteran owned and a member of the BBB. We have great referrals and are happy to spend as much or as little time with you as needed. There are many reasons that you may need to sell your home quickly. Contact us, we would love to help you find the right solution for your needs.