Getting a fair cash offer for your house is an enticing prospect. There is less of a chance of the deal falling through because your potential buyer could not get a mortgage loan and the entire process is much faster. However, as most real estate agents and investors know that you are looking for cash offers, do not be surprised if they try to low ball you.
That’s not to say that you shouldn’t look to get a cash offer on your house, just that you should be aware of who you are selling to. The first offer you get isn’t necessarily the best one. In this article we’ll cover the advantages of cash offers and how to get a fair one, but first, let’s cover the basics.
The answer to the question – what is a cash offer on a house – is straightforward. Your potential buyer is offering to buy your property for cash without any type of financing, such as a mortgage, involved.
The two primary advantages to a cash offer are: 1) the deal can’t fall through because of buyer financing; and 2) you usually close faster. The first advantage is obvious – the buyer has the cash on hand and doesn’t have to get a loan from a bank or other lender. If you come to an agreement, there’s no outside influence that can make the deal fail.
The other advantage is the closing time. For financed purchases, you can expect the closing time to be at least thirty days to upwards of a month and a half away. For cash offers, you can close in as little as in a week with the right buyer.
Additionally, for a buyer to get a loan, they will usually need to do a lender-mandated appraisal of your house. This can be a lengthy process that will extend the closing time. With a cash offer, it’s up to your buyer whether they want an appraisal done or not. If they do, it will usually be done quickly, as they have no interest in delaying the process.
It may be surprising, but cash offers are not that uncommon. Data regarding all-cash sales is hard to gather, so the numbers are not 100% accurate, but in the early years of the 2010s, all-cash offers made up around 30% of all purchases in California. According to most estimates, that number has gone down lately, but it’s still not that unlikely that you’ll get a cash offer.
Some of the most common buyers are real estate investors, private individuals who have sold their previous property and are looking to buy a new house, and retirees tapping into their savings accounts.
The issue with the first group is that they are looking to buy your house and quickly flip it. This means that they will push you as low as they possibly can so that they can turn a profit. The issue with the second and third groups is that they are often looking for something ‘perfect’, which makes it hard for them to commit.
However, a restoration company will buy your house in order to restore it, not flip it, and they don’t stress over repairs that need to be done, as a private buyer would. Because they cut out the middlemen and there are no commissions or fees involved, you can get a fair deal, regardless of the state your house is in.
Not necessarily. However, investors will lower their offer for any small repairs (not to mention large ones) that need to be made, while private buyers may not want to invest the time, effort, and money needed to get the house in order. If you are looking to sell a distressed property, selling to a restoration company may be your best course of action.
Yes, but under two conditions. First, negotiate a fair deal and don’t let the prospect of having cash in hand force you to make concessions you shouldn’t. Second, make sure the buyer has the money. Requesting your buyer to provide a proof of funds letter from their bank is a simple solution.
You can contact SleeveUp Homes and request a cash offer. SleeveUp Homes buys and restores distressed properties in Southern California, sparing you from having to make any repairs or dealing with realtors, all the while helping the community grow and helping a new family find a home.
SleeveUp Homes works with all types of homeowners, including distressed property owners and inheritors. We’re not realtors or wholesalers, we buy direct from you and we can give you a cash offer for your property. If you don’t want to go through the process of selling your home on your own, or you need to avoid foreclosure, SleeveUp Homes can help. We buy and rehab homes directly from homeowners, and we perform any repairs required to get a home into sale condition. We cut out the realtors and wholesalers so that we can pay top dollar for your house regardless of its condition.
If you’re ready to sell your home for a fair price without the hassle, contact us today to get an offer.