Ready to sell your house for cash? Cash may be the answer—whether you need to sell your home fast, have a hard-to-sell property, or just want to simplify the selling process.
Companies that buy homes for cash present a valuable alternative to selling your home through a realtor. With cash on hand, they can close the deal fast while you skip all the hard work of preparing your house to go on the market. With one phone call, you can set the sale of your home in motion.
But you, as a seller, want to ensure you get a fair deal. How exactly will you know if the offer you get is a fair value for your home?
Selling to a Cash Buyer
After contacting a cash home buyer, they will come to your home to conduct a property valuation, prepare an offer, and give you their terms for the sale. Then, you can decide whether it’s an offer you’d like to accept.
Before you decide whether an offer is fair, you should understand how the buyer arrives at it. Understanding how buyers determine their offers is important. Determining a home’s value can be a complex equation, so let’s shed some light on how a home buyer will determine the amount they are willing to pay for your home.
When selling your home as-is to a cash buyer, expect an offer slightly lower than what other homes are going for in your neighborhood. The buyer assumes all of the risks and repairs of owning the house, and for the deal to make sense, they need to be able to turn a profit on your home.
In exchange, you don’t have to lift a finger to prepare your home for the market. After you close the sale, they will take on every repair and update your home needs, saving you time and money. This is a simple sale for you and a smart business move for them.
But how much lower? And how do you know if the offer is fair?
Top Factors That Affect Your Home’s Value
The math must add up before a cash buyer takes a chance on your house. They will examine various factors to determine the fair worth of buying your property. These include:
Current Market
The real estate market fluctuates with the economy. Home buyers constantly assess the current market to understand buyer demand and trends in home sales. These fluctuations impact the value of properties in your area.
Location
The lot your home sits on determines a significant portion of its value. Desirable locations will sell for higher prices, while properties on busy streets, near train tracks, or in run-down areas will likely fetch a lower price.
Neighborhood Comps
The price of recent home sales in your neighborhood will play a huge role in determining the value of your home. You can look up recent sales of homes that are similar in size and features of your home to get a ballpark price range. You’ll likely see a spectrum of prices based on square footage, bed and bath count, current condition, lot size, and specific features.
Cost to Renovate
Real estate experts can quickly gauge the cost of renovations for your property. Their offer will reflect the time and money they anticipate putting into the house before they can sell it for a profit.
Each factor will affect the value of your cash offer. A good investor can tell you exactly how each factor helped them determine the amount they are willing to pay for your home.
5 Perks of Selling for Cash
Why cash? There are five distinct reasons sellers choose to work with quick cash home buyers over traditionally listing homes:
1. No Up-Front Expenses
It can take money to sell a home. Repairs and updates are costly and labor-intensive. An as-is cash sale allows you to avoid spending a fortune just to sell your house.
2. It’s Fast
Selling for cash is quick; they can wrap the entire transaction up in as little as a week.
3. It’s Easy
No realtors. No showings. No repairs or updates.
4. No Realtor Fees
In-house experts will guide you through the transaction and help you avoid paying hefty realtor fees.
5. Increased Control
When you sell for cash, you gain control of your timeline. You decide when you are ready to move and choose your closing date.
Cash home buyers offer a compelling solution for people who need to sell fast due to job loss or divorce. They can also be a great option when selling a damaged home or one needing an extensive update.
If you are ready to tap into the value of your home, getting in touch with a fast cash buyer is your next move.
Infographic
To set realistic expectations when selling your home, it’s important to understand how buyers assess their offers. Cash buyers evaluate various factors to ensure their investment is profitable. Read on to learn more in this infographic.
