Ready to sell your home? We’ve all seen the ads by companies that claim they’ll save you the stress of inspections and showings and give you cash on the spot. So, is that a good deal or not? Maybe not…and only rarely “yes”.
Cash home buyer companies are investors…
Let’s be realistic. The only purpose of a cash-only company is to make money. They are not really there to “help out a seller” They focus on people in distressed situations who want a quick sale…either because they need to move quickly or have too much deferred home maintenance they don’t want to address.
A cash offer from one of these companies could be as much as 30% to 50% less than your house could sell for in a traditional listing and showing process. This because their goal is to buy homes for as little as possible and then quickly resell the property for a price much closer to its market value.
Additionally, watch out for bait and switch scammers! Is the price on the contract you’re asked to sign less than what you verbally agreed on? It’s also important before signing any contract to read carefully and ensure you understand all legal terms so you aren’t ‘tricked’ into additional charges and expenses. And, never hand your home title over to one of these firms until you understand everything in their contract and agree to proceed. Scams include refinancing your home without your knowledge and pocketing the equity money from the refinance and walking away with it.
When a cash offer might make sense
There may be instances when you don’t need or care to get the maximum value out of your home. Perhaps you are a surviving family member and just don’t want to have to go through all the steps of a traditional sale when there are other estate affairs to focus on. Or, maybe there are a lot of neglected home maintenance issues you don’t want to or have the time or money to fix. If this is the case, then a quick cash offer may be just right for you.
When and why to use a Real Estate Agent®
Experienced Real Estate agents consistently sell homes for much more than cash-offer companies do. And in today’s hot real estate market, that might be tens of thousands of dollars more than the selling price! The best/top Realtors® will have access to large support networks for sellers – from competent home contractors and maintenance professionals to downsizing and organizing pros. They are experienced at finding and identifying qualified buyers, as well as negotiation skills to obtain the highest possible offer for the seller.
INVESTOPEDIA identifies 8 key reasons for using a Real Agent to sell your home
Do your homework before accepting a cash offer
By talking to an experienced Real Estate Agent and getting a recommended selling price based on a legitimate market analysis, you be able to compare that to whatever cash offer you’ve gotten in order to decide if a cash offer is worth it.