Tips For Selling A House Fast!
What does selling for cash mean?
First off, it usually does not mean that the buyer is bringing a briefcase full of cash to closing. Typically selling for cash means that the buyer is not getting traditional financing. The buyer may or may not have the cash available in the bank. If the “cash buyer” does not have the cash in the bank, he will likely have relationships with private lenders or hard money lenders who can fund the deal quickly and without having to get any sort of approval from a traditional bank.
The buyer may also have relationships with other investors with whom they can partner to get the deal done. Most of the time dealing with a cash buyer means dealing with fewer contingencies and quicker closings. Selling your Birmingham or Huntsville home to a “cash buyer” can be much quicker and easier than the traditional way of selling a house.
Why might a seller need to use a real estate investor?
There are many reasons why it may benefit a homeowner to sell to a real estate investor. Huntsville Real estate investors are usually much more flexible than an owner occupant buyer. An investor will likely be willing and able to work on the seller’s time frame. Many times the seller will need to close quickly to get cash for another immediate need or even to avoid foreclosure.
On the other hand, sometimes a seller will need to delay closing due to title issues (which the investor may be able to help with), moving timeline, tenant issues, issues related to estates and inherited homes, among other things. Real estate investors are much more likely than an owner occupant buyer to help with solutions and work with sellers on the sellers timeline.
What are the pros to selling to an investor for cash?
As mentioned above, the real estate investor will likely be flexible on timelines and may be able to offer a unique solution for the homeowner. Most of the time a real estate investor expects to pay the closing costs which can save the seller thousands of dollars. Although investors do work with realtors, an investor is likely happy to work directly with the home seller. With no realtor involved it can save the seller thousands in commissions.
Do the math. If you are looking to sell your house fast to a real estate investor, know that the investors’ offer will likely be lower than what you could get on the open market. That does not mean that you will make more money by listing your house with an agent. Consider the following and add up the costs: The cost of the repairs to get your house ready to sell at the top of the market. Paying a realtor a 6% commission. Paying closing costs which can add up to another 5% of the sales price. The interest you will be paying on your loan while you fix the property up and wait for it to sell. The cost of taxes, insurance, utilities, property upkeep while you own the property. The time you spend on the property you could be spending on other revenue generating activities (or better yet- joyful activities). Once you add up all the costs and subtract them from the total sales price you may or may not net more money by fixing the property and selling it on the open market. If you will net out more money by doing all this yourself, ask yourself if that amount of money is worth doing it yourself.
What tips would you offer a homeowner needing to sell their house fast? Do not do any repairs. When the investor looks at the house he will make you an as-is offer. He will factor in the cost of the repairs. The investor will likely have relationships with contractors and suppliers so that he can get the work done for less than you can, For example, the investor may look at the property and determine it needs a new roof. He may budget $4000 for a new roof because he has relationships where he gets discounts on materials and labor. If you go out and get a quote on a roof it will likely cost you more than $4000, therefore costing you money – not to mention the headache of dealing with contractors.
What tips would you offer a homeowner needing to sell their house fast?
Do not do any repairs. When the investor looks at the house he will make you an as-is offer. He will factor in the cost of the repairs. The investor will likely have relationships with contractors and suppliers so that he can get the work done for less than you can, For example, the investor may look at the property and determine it needs a new roof. He may budget $4000 for a new roof because he has relationships where he gets discounts on materials and labor. If you go out and get a quote on a roof it will likely cost you more than $4000, therefore costing you money – not to mention the headache of dealing with contractors.