Real estate remains to be a solid investment. People buy properties because it comes with pride in ownership. It also portrays a sense of stability and security. On top of that, a property’s value appreciates over time. So, should you decide to sell it in the future, you can still earn a good amount of money from it.
The concept of selling houses is not new. Although most families yearn to own a house, some may eventually see the need to sell it. As per the National Association of Realtors data, there were over 6 million existing homes sold in the US as of March 2021. If you’re also one of those who want to sell a house fast for cash, this article is for you.
Deciding How You’re Going to Sell Your House
There are different tactics you can follow when it comes to selling your home. Whatever method you choose will determine your entire game plan, the selling price, and all the other preparations you need to do.
The most common strategy is to work with a real estate agent. They handle everything, from marketing your home and preparing the paperwork to liaising with the buyer’s agent and closing the sale.
You can also do the work alone in the For Sale By Owner (FSBO) way. But if you want to sell a house fast for cash, you should go with home-buying companies.
What Is a Home-Buying Company?
Home buying companies are sometimes known as investors that buy houses with a good cause. They help home sellers who want to get rid of their property quickly. These companies pay sellers cash for as-is properties. This means that, unlike the traditional way of selling a house, there’s no need for you to have your home repaired or renovated just to attract a potential buyer.
Scenarios Wherein Relying on Cash Home Buyers Is a Good Idea
House-buying companies are most helpful for people entangled in certain difficult situations. Here are a few examples:
- Companies that buy houses for sale are a good option for those who need to let go of property immediately, perhaps due to divorce or job relocation.
- If you have an extra property or inherited one and you’re not interested in keeping it, working with house-buying companies is an easy way to turn it into cash.
- Those facing foreclosure can sell their houses to cash home buyers and prevent a devastating hit to their credit score.
- If the house is in a bad condition that you think it’s already useless, you can still try to contact a home-buying company to check if they’re willing to buy it from you.
The Typical Process of Selling Your House As-Is for Cash
Yes, “we buy any house in any condition” is the slogan of cash home buyers. But it doesn’t work as if you’re just selling chocolate from a candy shop. It still has a process to follow.
Of course, the first step is to contact the company, and you’ll receive a response from one of their representatives. They will schedule a visit to your home and ask for details about its condition. After getting answers from you, they will make a cash offer for your house.
If the cash offer sounds good to you, just sign the deal and choose your preferred closing date. Closing usually takes about seven to 90 days.
Know the details of this easy process at propertyescape.net.
How Much Can You Get from House-Buying Companies?
Alt-text: a representation of selling a house fast for cash
Remember that if you want to sell a house fast for cash with home-buying companies, you may not be able to get the standard market value for your property. Of course, you can haggle on the cash offer. But the business model of cash home buyers relies on their turnaround of properties for a profit.
House-buying companies follow a certain rule when it comes to their cash offers. For a buyer to get a decent profit, they shouldn’t pay more than 70% of a home’s after repair value (ARV). The formula is the amount of the property’s ARV multiplied by 70% and then deduct the needed repairs.
For instance, a house in good condition is valued at $200,000, but it needs to undergo renovation work that will amount to $20,000. In this case, $200,000 multiplied by 70%, which is $140,000. Then, deduct the estimated amount of repairs which is $20,000. The total amount, $120,000, is the expected cash offer from the home-buying company.
Tips to Remember on Finding Companies That Buy Houses for Cash
While there are a lot of legit companies that buy houses for cash, there are still others that take advantage of you during the deal. Take note of some of these tips so you can avoid falling into their trap.
Check the Company’s Credentials
Start by searching the company online. If that’s not enough, you should be able to get information by contacting the company itself. Check the company’s name if they are indeed a registered business. Ask the name of the owner and the representative you’re talking to, so you can identify whether they are truly connected with the company. Most importantly, search if there are any lawsuits involving the company’s name.
Find Proof of Funds
As investors, cash home buyers need to have a pool of funds to buy houses for sale in cash. If possible, inquire where their funds are coming from. Ask to see an open line of credit, bank statement, or any certified financial statement. The document should contain the date it was issued (and shouldn’t be expired), the name of the account holder (should match the names on the company’s credentials), and the balance of funds on deposit.
Get Legal Advice
Protect yourself from shady companies by working with a real estate attorney. They can represent you throughout the sales process. Contracts can get complicated, most especially for those who don’t have any legal knowledge. A lawyer’s assistance will prevent you from overlooking or misunderstanding some legal details.
No matter what situation you’re in and you want to sell your house immediately, dealing with reputable cash home buyers is a good choice. You can get rid of your house in just a short period of time and get paid in cash. Plus, you don’t need to have the house repaired because these buyers will purchase it as-is. Just make sure that you’re dealing with a legit investor before start negotiating the deal.
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