In the world we live in today, most of the time, if something sounds too good to be true- it is! There are so many ways that people are being taken advantage of that it can be a challenge to discern what is legit and what isn’t. When people decide to sell their home, they typically take time to consider the various ways to get the best deal. Many wonder if cash offer home buyers are a scam, the answer is no.
Getting a cash offer couldn’t be easier than it is now. As soon as you google sell my home, a list of ads pops up offering cash deals on your home. The process is so straight forward it gives people pause, wondering if there’s a catch.
Will I get a fair price on my home?
If you want to be sure that you are getting a fair price on your home, your best option is to first get an appraisal. When you get your home appraised, you can compare the valuation to the offers you receive from cash buyers. In general, most investors use the 70% rule. The formula is ARV (after rehab value) x 70% -ERV (estimated rehab value). If investors can make the deal work in their favor they’ll buy the home but if the math is off, they won’t.
Who should sell to cash offer home buyers?
Cash buyers usually target distressed properties. Homes that owners cannot afford to make repairs or owners that have no interest in a rehab project. If your home is updated and in good condition, you may prefer to go the traditional route to sell. Investors buy to make a profit, so it is unlikely that you’ll get the cash value on a home that doesn’t need work. If you are a motivated seller with a property that needs work, sell your home to a cash buyer.
What is the process, how does it work?
Selling to a cash buyer is much easier than selling to anyone else. Investors are just as eager to find new deals as you are to get rid of your property. They make the process very simple for the sellers. Once you find a buyer you are comfortable with, they will come and view the house to work up an offer for you. If you like the price, the buyer will write up a contract for you to review and sign. After the contract is signed the transaction should happen fairly quickly. In ordinary real estate deals, the financing aspect is what takes the most time. In cash sales, there is no need for underwriting which can delay closing.
Zillow reports that you can close in as little as two weeks! If you have been procrastinating because you think that it might take too long, it doesn’t. Also, there is very little that the seller needs to do other than showing the house. Cash buyers understand that these owners are busy and prefer a hassle-free experience. So, no more excuses! Do your research, sell your home, and get paid.