Selling a home for cash to home investors is a smart move for most homeowners. You can avoid the circus in the market listings that can have your property unsold for months on end. You also enjoy the full amount of the proceeds from the fast home sales.
While house sales without an agent are quite enticing, there are several pitfalls that homeowners can fall into if they fail to do their due diligence. As a savvy home seller, here are five mistakes that you will want to avoid when selling a house for cash.
1. Not Qualifying the Cash Home Investors
Reporting to your new workstation or returning home after inheriting a property can push you to sell your house fast. You may end up skimping on researching your home buyer, which may prove costly in the long run. You need to take time and conduct background checks on the private investor. Let them provide a proof-of-cash letter before agreeing to the offer provided. An excellent way to find the right homebuyers is to ask for references and reading reviews from past clients.
2. Spending Money and Time on Repairs
The traditional realtor route may push you to carry out expensive upgrades and repairs to make the property attractive to homebuyers. Some homeowners carry over this notion when selling a home for cash. Most cash home investors buy the property on an ‘as-is’ basis, meaning there’s no need for repairs or home inspections. As a general rule, you can only recoup 70 to 80% return for the improvements made. Selling without an agent allows you to save much-needed cash.
3. Signing Up a Real Estate Agent
Most homeowners wrongfully list their homes under a real estate agent before starting their search for a home investor. You will have to sign a listing agreement with the realtor. You may have to pay up the agent’s commissions (approximately 3% to 6% of final costs), even if you found the home investors yourself. Selling without an agent sets you free, allowing you to enjoy the full amount. Besides, you can close on the property faster. The traditional home selling option may take an average of 30 to 90 days from the time you accept a buyer’s offer.
4. Overvaluing of the Property
Cash home offers may not always match the market value. However, you are guaranteed a fair price. You do not have to carry out expensive repairs or set aside funds for listing, staging, and photography. You also won’t have to part with the commissions. However, you may need to set realistic expectations for the value of your house. Overpricing your property can make you lose potential cash home investors.
5. Having an Emotional Attachment to the Home
While you may have fond memories of the home, bringing emotions to the table can cloud your judgment. You may need to adjust your frame of mind, viewing your house as a property. That’s how the cash home investors will see it.
Cash home buyers carry out house sales with a quick turnaround time, providing home sellers with an instant, fair offer for their homes. You may need to maintain a sober mindset to avoid falling into such pitfalls. If you need additional information on the home selling process, reach out to us today.