In the past decade, technological advances have allowed us to take on industries in a much different way. For real estate and selling houses, we’ve been able to use technology to our advantage to accomplish goals in ways that simply weren’t possible in the past. Selling houses for cash is one of the newer methods that is driven by new technology. Companies are able to use their software and platforms to make offers on a wide range of homes and purchase them as is for cash. If you’re considering this as an option in lieu of putting your property on the market, here are some tips for selling a home for cash.
Understand Who These Buyers Are
There are a few different groups who will make cash offers on your home: house flippers, buy-and-hold investors, and iBuyers. House Flippers are usually on the lookout for homes that require a lot of work and that don’t cost a lot. If your home is up to date and doesn’t need a lot of work, then you likely wouldn’t sell to a house flipper. Investment companies and iBuyers, on the other hand, will likely make a higher offer on your home.
Buy-and-hold investors are groups who purchase homes with the intent of using them for rental properties. They’re looking for properties that don’t require a lot of updates and renovations.
The third group, iBuyers, are more intertwined with technology. They use software to purchase a large volume of homes for close to what those homes are valued as–– assuming they are in good condition. They will then use their software to sell your house at a higher price. iBuyers are becoming increasingly popular and are proving to be a good and useful alternative to traditionally selling a home, even when the market is hot.
Familiarize Yourself with the Process
The biggest perk of going with a cash buyer is the much shorter time it takes for them to close on the house. You will start the process by contacting them to request an offer. Then, they will do an evaluation and inspection before making an offer. If you accept, they will start the closing process which will be much shorter since they won’t need to be approved for a mortgage. Once the house is closed on and the title is cleared, you will receive your payment.
Understand the Risks
Sometimes, if something seems too good to be true, it is. When researching cash buyers, do a lot of digging to make sure that they are legitimate. See if they are registered with the BBB and read up on all of their reviews. When you are going through the process of accepting an offer, ask for proof of funds from the buyer before signing any contracts!
Weigh Your Options
Nowadays, cash buyers can make significant offers on your home that are close to your home’s value. Putting your home on the market will take a lot longer to sell, but you might be able to make more money on the sale. Additionally, browse different companies and see which would be the best fit. We suggest using a home value estimator and looking into how much different iBuyer companies are willing to offer. At the end of the day, you’ll want to choose the option that is going to be most beneficial for you!