If you’re selling your home to a cash buyer for cash you may be weary, wondering if you are in fact getting a good deal.
Luckily, there’s a way to squash the uncertainty.
Here are a few things you need to look at in order to determine if you’re getting a good deal when selling your home to a cash buyer.
A lot of people look at the listing price of similar homes when trying to figure out the value of their home. Some even use price estimator tools on online sites, which tend not to be very accurate.
But the best way to figure out what your home should be priced at is to look at the market value, which can be determined by looking at what similar houses sold for in the area.
After you know the market value of your home, you need to think about what you’ll actually net (the amount remaining after expenses and fees) rather than what you’ll gross (the total amount before anything is deducted).
If you need to replace the roof or the plumbing, that could certainly affect the dollar amount you’ll be left with.
Plus, you have to factor in things like real estate commissions (about 5-6%), escrow fees, staging costs, seller concessions, and title fees.
What a Deal Means to You
Often times, there are things that can sweeten the deal beyond cash. And a good deal for you may be different for someone else.
If you’re going through probate or relocating and need to sell quickly, being able to close as quick as seven days, which is what most real estate investors buying with cash can offer, might be pretty helpful.
Or if you have terrible tenants and the real estate investor is willing to buy your property with them still in place, that’s one big headache off your hands.
Be sure to let them know what would make the deal great for you. They will often oblige.
Cash Buyer Credibility
It’s also a good idea to look at the real estate investor’s website.
If they’re transparent about their process, provide a lot of valuable information, and have a lot of good testimonials, they’re probably pretty credible, making it likely they’re looking to make it a win-win deal.