Cash is king, especially when it comes to selling your home. A cash offer allows you to speed things along with less red tape and is more reliable than an offer contingent on financing. But if you are lucky enough to receive a cash offer on your house, proceed with caution. While a cash offer is the gold standard, not all are created equal. Before moving forward, know what to avoid by reviewing these critical mistakes.
Mistake #1: Accepting a Cash Offer from Just Anyone
When you sell a home, it’s important to take the time to learn what you can about a cash home buyer. Unfortunately, some buyers attempt to scam sellers under the guise of a lucrative cash offer. You can avoid this mistake with a bit of due diligence. Always do a quick Google search on the person or company offering you cash. Be cautious if someone offers to buy your house 1) without seeing it, 2) from a foreign country, or 3) at a price that seems too good to be true.
If you sell to a real estate investment company, check with the Better Business Bureau to find out their rating. This will give you a really good idea of how reputable they are and how satisfied people are working with them. Not all investors are created equal, so choose someone who promises to treat you well and has the reviews to back up that promise.
Mistake #2: Not Verifying the Funds of the Buyer
If someone has the cash to buy your home, they can prove it. Money can be a taboo topic, and it might feel awkward to demand to know how much cash someone has. Rest assured, it is standard in a cash transaction to ask for proof of funds before accepting an offer.
If someone does not have the cash to close the deal, you should look for a new buyer. This is yet another tactic that people use to take advantage of homeowners, especially those looking to sell a house as-is for cash. There are excellent fast cash home buyers out there, but there are also those who imitate them to pull a fast one on sellers. Make sure you work with reliable ones who can put their money where their mouth is.
Mistake #3: Pricing Your Home Too High
If a cash offer appeals to you because you want to sell fast, your home has to be priced right to ensure a quick close. Pricing your home too high will result in it sitting without offers. This is, again, something that you can avoid by understanding how cash offers work.
When you sell to a real estate investor, they typically offer you the chance to sell your home as-is. They will offer you a price for your home that reflects the work they need to put into it before selling it for a profit. It is common for people to overvalue their homes and spend valuable time looking for more money. But remember that when you sell your home for cash to an investor, you avoid closing costs like realtor fees. So, while the sales price may be lower, you are avoiding some hefty costs associated with selling through other methods.
Mistake #4: Involving a Realtor
Real estate agents come at a cost. The standard fee for working through realtors is 6%, split between the buyer and seller’s agents. This can add up to a lot of money that comes right out of the profits.
One of the perks of selling to an investor is that they have in-house professionals who can close the deal without charging you all of those fees. An investor will make money off of your home by updating it and selling it at a higher cost than they paid for it. When they do these enough times, they will have a team that can execute the transaction at a cost savings for both parties.
Mistake #5: Spending Lots of Money Preparing to Sell
Selling for cash to an investor is truly the easiest way to sell your home. If you think this is the route you want to go, save yourself the headache of putting work into your home before you reach out for an offer. An investor will do all of the work after they close, so there is no need to lift a finger.
Repairs and updates don’t always increase a home’s value, which can lead to frustration when it comes time to sell. If you are looking for a fast transaction cash offer, you do not need to improve your home to try and get a better price. Save yourself the time, money, hard work, and frustration, and let the professional cash home buyers take care of it. All you have to do is pick a closing date, pack your things, and they will handle the rest. You get all the benefits of a simple transaction, and there’s no easier way to sell your home.
Video
Infographic
A cash offer can speed up the selling process with less hassle and is often more reliable than a financed offer. However, if you receive a cash offer, proceed with caution. Explore this infographic to avoid common mistakes.
