A cash home buyer is a person or company that purchases homes for cash. Using the services of a cash buyer offers sellers several benefits, including no mortgage, no appraisal, no inspection, and, essentially, no hassle.
If you want to sell your home quickly, it is time to learn how to pick the right cash buyer. Some tips you can use to make this important decision can be found here. Being informed will help you pick the right cash buyer to sell your house to and ensure you are confident in the offer you accept.
How Selling to a Cash Buyer Works
Selling to a cash buyer means they will pay you the whole cost of the house. No mortgage or other type of financing will be needed or involved in the sale. Many buyers prefer cash offers, even if they are lower than the offer they would receive from a buyer who has been pre-approved for a mortgage.
Some of the main differences in selling to a cash buyer vs. a traditional buyer include:
- No need to hire a realtor
- No mortgage or financing needed
- No appraisal or inspection required
- No fees or commissions to payout
- No repairs have to be made (you can sell the house as-is)
Remember that while no appraisal is required to sell your house to a cash buyer(this is something mortgage companies require), you may still want to have one done. When you do this, you will know for sure that the offer you take for the purchase is fair. While it may not be as much as you would get from a traditional buyer, you still want to ensure the price makes sense based on the value of your home.
Selling To A Cash Buyer: A Faster Selling Process
When you choose to sell your house to a cash buyer, the entire process will sail along smoother and faster. Selling to a cash buyer also offers much less risk for the seller.
The mortgage underwriting process is one of the longest steps in the process of buying a house. It may take between 30 and 60 days to complete. There’s also the chance that the potential buyer’s financial situation will not suit the pre-approval requirements, causing the lender to deny the loan. When you can avoid the underwriting process for the mortgage, you can avoid these risks.
Selling To A Cash Buyer: Cash Offers Are Stronger Offers
Sellers can choose a cash offer over a mortgage offer even when the buyer with the mortgage is offering more money. The reason for this is simple – they receive the money faster. Also, there is a lower risk the deal will fall through without the appraisal and mortgage process.
Where to Find Cash Buyers
Cash buyers aren’t confined to a single industry or demographic. Anyone with extra money and who is interested in buying real estate can be considered a legitimate lead.
What this means is that you should not limit your search to just one type of buyer as this will limit the potential of the other buyers “out there.”
Some of the top options to pick the right cash buyer are listed here.
Looking online will help you find countless cash buyers. However, you have to be careful if this is how you search for the buyer for your property. Be sure to carefully vet the buyer you are considering using the other information on this list.
Check Public Records
Public records can provide you with several potential buyers that have purchased real estate in the past as an investment. This may be a good source of potential buyers for your property.
Ask Real Estate Agents for Referrals
Real estate agents know the industry, which means they can probably point you in the direction of a potential investor. You may want to ask a few real estate agents for investors that may be interested in purchasing your property.
Attend Auctions at the Courthouse
Real estate investors often go to property auctions trying to find good deals. They also typically have cash and will be ready to make a purchase. Unfortunately, due to the competitive nature of real estate auctions, many investors leave with cash in hand. This is your opportunity to introduce yourself and let them know you have a property for sale.
Find Landlords on Craigslist
You can use Craigslist to find landlords who may be interested in purchasing additional properties. Usually, landlords will post about available homes they have for rent or make posts that they are searching for homes to buy.
You can also use Craigslist to advertise your property as being sold “as is” or to sell your house to a cash buyer
Mrs. Property Solutions
Pick the right cash buyer, our team of cash buyers is ready to purchase the property you have for sale. We buy homes “as is” and offer fair valuations. All you have to do to get started with our services is to contact us. We can begin the buying process right away.
Things to Look Out for with a Cash Buyer
Any cash buyer is going to be able to prove they are serious about their offer. A few things to look out for can be found here.
Proof of Funds
You should also request proof of funds from the potential buyer. If the buyer cannot or will not provide this, it may be best to work with someone else.
As a savvy seller, you need to make sure the buyer you are working with has “skin in the game,” which means they have something to lose if the buyer doesn’t meet the stipulations in the contract. Usually, this is seen as an Earnest Money Deposit, which is expected to be sent into Escrow within 72 hours of an accepted offer. Escrow is sent to the seller if the buyer cancels the offer or doesn’t perform based on the contract.
The lower this escrow amount is, the less skin the buyer has in the buying game and the less incentive that a buyer has to meet the contract’s stipulations.
A few things about this you should keep in mind in selling to a cash buyer:
- 1% of the total purchase price is the industry standard
- Anything under that should be countered
If a buyer cannot submit enough money into escrow, they may not be able to bring the required funds to the closing, either.
How to Pick the Right Cash Buyer
When it is time to pick the right cash buyer, there are a few factors to consider. Remember, not all-cash buyers are created equal, sell your house to a cash buyer that best suits your needs and situation.
Someone Who Is Helpful to Your Needs
Sell your house to a cash buyer who understands your situation and is willing to work within the parameters of your needs. For example, if you need to sell quickly, they should take steps to accommodate that.
In most cases, you can determine how helpful and customer-centric a buyer is by speaking with them and asking questions. Taking the time to speak with several buyers will help ensure you find the right buyer for your situation and needs.
Get a Few Quotes
Get quotes from several potential buyers. When selling to a cash buyer be sure to compare the quotes to one another to find the one that offers the most value. Along with the price that the buyer is willing to pay, you need to ask about potential fees that may come out of the offered price.
Review Several Written Offers
Once you have a quote, you can ask for an offer in writing. Take time to review this carefully and read all the fine print. Review several of these to find one that meets your needs and provides a good value for the property you are selling.
The written offer should include the amount to be put in escrow, the total amount given to purchase the property, and other factors.
Before settling on an investor or selling to a cash buyer for your home and property, it’s a good idea to read past customer reviews. By doing this, you can gain insight into the process they use and determine how many sales were successful.
When reading reviews, be sure to check with sites like the Better Business Bureau and even Google review pages, where you can find off-site reviews about the buyer you are thinking about using.
The Bottom Line
When it comes time to pick the right best cash buyer, several factors must be considered. A good place to start is with the information above. Taking time to learn how and where to find a cash buyer is essential to ensure you have a positive experience with the cash selling process. Sell your house to a cash buyer that best suits your needs and situation.
If you want to ensure the buying process is as hassle-free and seamless as possible, Pick the right cash buyer and contact our team at Mrs. Property Solutions. We offer the cash buying services you need and will provide you with a competitive offer representing the value of the home you are selling. We are ready to buy, have proof of funds, and can answer any questions you may have about the buying process.