Cash is king in the world of real estate investing. Only 16 percent of homes are bought in cash, but most of these transactions involve non-investors.
Improve your chances of a quick sale by creating a win-win situation for both you and the buyer. Take a look at these 9 tips to sell a home quickly to cash buyers.
Why Sell a Home to a Cash Buyer?
A cash buyer is anyone who can purchase your home without the help of a loan. Since homes are expensive, cash transactions for real estate are less common than mortgage transactions.
You don’t exchange actual cash during a real estate transaction. In fact, buyers might not even use money from a checking account to close on the deal.
Some buyers use investment or retirement accounts to finance real estate transactions. Others might have access to equity from an existing deal.
During the closing process, you or your mortgage lender is paid off using certified funds. The main benefit of selling a home for cash is speed.
Buyers who need a traditional mortgage loan have to undergo a lengthy approval process to prove they can afford to repay the loan. There’s no guarantee that buyers will be approved at the end of that process.
In situations where closing takes several months, you are on the hook for paying the mortgage until the new buyer takes over. A loan denial puts you far behind your desired sale date unless a cash buyer comes along.
Take a look at these 9 ways you can speed up the sales process with a cash buyer.
1. Research
The first thing you need to do to prepare your home for sale is find out what’s happening in your market. Is it a buyer’s market or a seller’s market?
Knowing the difference between the two could make or break how quickly you find a buyer. A buyer’s market means there’s more inventory, or homes, available for sale than there are buyers interested in purchasing them.
A seller’s market means there are not enough homes available for the number of buyers looking to purchase. In each scenario, the buyer or the seller has the upper hand.
You’ll have far more flexibility in pricing with a seller’s market. Knowing market conditions can also help you set realistic expectations for your sale.
For example, if the average Days on Market (DOM) is 9 months, thinking you’ll sell your home in 8 weeks could set you up for disappointment.
2. Network
Next, you’ll want to expand your network to include real estate investors in your area. Visit your local real estate investors association chapter to meet potential buyers.
Before you present your deal to the group, you might consider attending a few meetings to learn who the investors are and the kinds of properties they look for.
Take your time building relationships to give yourself a chance to build mutual trust. You’ll learn nuances like whether these investors like making their own repairs or whether you should have the home in top shape before placing it up for sale.
3. Declutter
There are real estate investors that buy homes in any condition. But more often, you’ll need to at least pack and declutter your home before presenting it to potential buyers.
Some buyers want homes with little more than a few cosmetic repairs. Homes that are cluttered leave an impression of negligence.
Declutter your space before placing it up for sale so it looks move-in ready.
4. Inspect
Another way to sell a home quickly is to get a pre-inspection before listing it. This helps investors decide quickly whether or not to invest in the deal.
By having an inspection already done on the home, you’re saving time during the closing process.
5. Price
Compare your cash price to other cash prices for similar homes in your area. Chances are, there won’t be many to compare.
This is where having a network of investors to contact comes in handy. Don’t be shy about asking for advice about your listing price.
If there isn’t a real estate investors network in your area, consider calling a top real estate agent instead. Experienced realtors can usually help with cash transactions and can provide insight on the best cash price.
6. Market
List your property in places where cash buyers frequent. For example, real estate investor forums are a place where deals are sometimes presented.
You can also submit your home for offers on websites that promise you can sell house for cash.
7. Stage
Attract the attention of every type of buyer that might be interested in your home by staging it beautifully.
If it’s priced to sell quickly, you might be surprised to discover that owner-occupants are also interested in making offers. Staging your property presents it as a home instead of just a deal.
Real estate investors and traditional buyers can both see the value in a move-in ready house.
8. Hire
If you’re not getting any bites listing the home yourself after a few weeks, always contact a real estate agent. There might be something simple you’re missing about your market that an agent can quickly address.
Don’t assume you have to go the process alone to save money. Use the resources you need to get a buyer fast.
9. Incentivize
There’s safety in numbers when it comes to selling real estate quickly. Offer your friends and family a referral fee for helping to get the word out about your property.
You want as many interested buyers as possible to increase your chances of finding the right match. Many real estate agents build their career just from referrals. You can do the same and successfully sell your property quickly.
How to Sell a Home Without a Realtor
The best way to sell a home without a realtor is to have accurate research about your market. You’ll also need a solid network of buyers that you can build on your own by getting out and meeting investors.
Keep in mind that this process can take time. If you need an immediate sale, there are websites where you can get instant cash offers without waiting around for investors to show an interest in your deal.
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