10 Practical & Expert Tips For Selling Your Home For Cash

More and more desperate, fed up, and stressed homeowners who are looking to sell their houses as quickly as possible are turning to the growing number of property investment companies who buy houses for cash.

Whether it’s the imminent threat of foreclosure, tenants not paying their rent, or for personal reasons, such as a divorce, a job relocation, or a dwindling bank account, many homeowners are heavily motivated by the sheer speed and simple convenience of a cash sale that these property investors can provide them.

In many respects, you can’t beat this for the convenience of selling your home: 

  • (1). Make a phone call; 
  • (2). Answer some questions; 
  • (3). Fill out a form; 
  • (4). Show a company representative around your home; 
  • (5). Agree to the offer made…

Yes, the whole process can really be that simple – especially as clients can have their cash in around 7 days.

If you have a bundle of questions about the entire cash purchase process that you need answering, or if you can’t believe something as important as a house sale can really be so simple or so quick, then read on…

Not only will this article inform you of everything you need to know to answer those questions, it will also include “10 Practical & Expert Tips For Selling Your Home For Cash” – gleaned from experienced real estate investors, as well as real-life homeowners who have actually sold their home for cash.

Who Will Purchase Your Home For Immediate Cash?

The growth in popularity of selling your home for cash has resulted, unsurprisingly, in many, many more property buying companies arriving on the online real estate scene. 

Cash buyers or house buying companies are either individual investors or businesses that will buy your house, without any need for lender financing – they have the cash reserves just waiting for the next “right” property to appear.

To put their business model into simple terms, these cash buyers will allow you to sell your home as-is, and without the continuous hassle of showings and open days. They can also arrange a far more flexible closing timeline to be fully “in-sync” with your next house purchase. 

However, the business model can change slightly from one type of property cash buying company to another. Here are the most common types of cash buyers operating in the real estate marketplace today:

Property Companies Who Buy Houses For Cash

Type of Cash BuyersBusiness Model
House Flippers:Real estate investors transform properties from basic homes into high-quality properties, increasing their equity for a quick sale.
Buy-and-Hold:“Buy-and-hold” companies purchase houses with the aim of renting them to tenants – or “holding” – rather than selling on. They, too, look for properties that offer enough potential equity or a quick cash flow.
Buy-and-hold companies use the “BRRRR” model, meaning “Buy, Rehab, Rent, Refinance, Repeat.”
iBuyers:“iBuyers” (also known as Instant Buyers) are predominantly online businesses that use real estate market digital data and technology to make immediate offers on houses, sight-unseen, following contact from the owner. Bear in mind:

– Most iBuyers are fee-based companies 
– Offer is normally competitive
– Repairs: If any repairs are needed, they usually insist on credit at closing
– Sellers need to be aware of other additional costs and fees
Trade-in Companies:“Trade-in” companies are variations of the same home-buying business model – to offer to buy your current home guaranteed, freeing up your funds, and removing any immediate need for a home sale
Local / National Investors:“Local Investors” tend to focus on purchasing houses in specific states or cities, as opposed to our family-run investment company – Better Off Home Buyers – as we provide a nationwide service (see below for more information)
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Real Estate Agency vs. Property Investor Paying Cash

For many homeowners, however, the reality is that they are selling the biggest investment yet that they have made themselves during their lifetime. Because of this, they are really looking to fully maximize any profit from the house they feel they are due.

For this reason, they’d rather stick with the more “traditional” route – hiring a real estate agent to market the property, the agent gets people through the door, and one of these visitors to your home makes an acceptable offer.

For those looking to sell their home as quickly as possible, however, the “traditional” real estate agency route can end up being extremely frustrating as they wait and wait for the right buyer to come along.

In fact, this is the pivotal point of choosing between these options in a nutshell: 

Can you afford to wait to sell your home?

Sale ActivityReal Estate AgencyProperty Investor
Inspection & Financing ContingencySales can and do fall through, so all sellers need a backup planNot required
Subject to AppraisalYes, the sale is normally subject to appraisalNo appraisal is required, as we make cash offers
Average Days Until Sold+/- 91 dayson averageImmediate cash offer, with closing in as little as 7 days
Number of In-Person Viewings20+ viewings on average1(just us)
Payment of Necessary RepairsYes, the seller’s responsibility – however, subject to negotiationNo, as we pay for all  necessary repairs
Commissions & Fees6% on average, paid by the seller if an agent is subsequently requiredNone
Closing Costs2-5% on average, paid by the sellerNone, as we pay all costs
Closing Date+/- 30-60 days after accepting a buyer’s offerThe date of your choice
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Selling Your Home For Cash: 10 Practical & Expert Tips

The “10 Practical & Expert Tips For Selling Your Home For Cash” provided below to help guide you in this type of house sale have been sourced from experienced real estate investors – yes, including ourselves – Better Off Home Buyers – as well as real-life homeowners who have actually gone through this process, and sold their home for cash.

#1. Ultimate Due Diligence

If you’re selling your house for cash – perhaps the most expensive item you have ever owned –  you must first apply your very best due diligence, and research the house buying companies available to you, before determining which one is best for the sale of your home and your personal situation.

As we have described previously, there are many house-buying companies around: some buy sight-unseen, some work mostly online, and some search for local homes, and then arrange walkthroughs before submitting their cash offer.

Here are several guidelines to apply to your research:

Check References, Reviews and Better Business Bureau Rating

It is critical that you fully evaluate a house-buying company before you work with them. To do this, you can:

  • Browse references from other sellers that have used their services – normally found online at business rating services, eg. Angie’s List or Yelp, and the company’s own website. 
  • Search Google and other search engines to find company reviews.
  • Ensure the company is an accredited Better Business Bureau (BBB) member. You can then check for their BBB reviews.

Request Proof of Funds

Cash buyers promote themselves on the basis that they have the readily available cash reserves to purchase properties outright. However, you should always obtain official documentation that the company or individual investor is (a). who they say they are, and (b). They have the necessary funds (and more) to complete a cash transaction of this size.

#2. Accurate Valuation: Know How Much Your Home is Worth

A house buying company is going to offer you something on the lower spectrum of the range of your house’s worth. This is predominantly because they are a for-profit business, but also because they buy property “as-is.”

However, it makes perfect sense that you already know your home’s value (as accurately as possible). Here are 3 ways to determine a relatively accurate house value:

  1. Online Real Estate Valuations: You can get free valuations from a number of websites, such as Trulia. Remember, they are estimates at best, and could be out by thousands of dollars.
  2. Real Estate Agent’s Market Analysis: Agents can provide a more detailed analysis of your home, and the accuracy of the figure will improve from an online valuation. However, even though they are usually free, the agent is hoping their valuation will encourage you to sell your home through their agency. In other words, you’ll get the full sales pitch, too.
  3. Licensed Appraiser: Professional appraisers normally provide the most accurate estimate of the value of your home, and it’s handy to use as a bargaining tool when negotiating the sale price with the buyers. The downside is the cost – appraisers charge around $300-$500 for a report, and it cannot be used as an appraisal for a mortgage application by the buyers.

#3. House Repairs & “Sprucing” (As-Is = As-Is)

For a cash house sale, you do not have to repaint your home, fix every little nagging plumbing issue, or get a brand-new carpet. House-buying companies buy property “as-is.”

There is no need to carry out any repairs or do any “sprucing up” whatsoever. For many homeowners looking to sell as quickly as possible, this in itself usually comes as a huge relief.

#4. Honesty: The Best Policy

One of the most important benefits of selling your house for cash is that house-buying companies generally do not particularly care what general condition a home is in. Bearing that in mind, then, there is no need to try to hide aesthetic problems or issues.

Honesty really is the best policy to use when dealing with cash buyers. They are the opposite of standard homebuyers who are looking for “move-in ready” properties. Cash buyers are purely focused on the potential of a property.

#5. Received an Offer? Do The Math

Once you have received an offer from the house-buying company, it’s time to do the math. Refer to the table above: Real Estate Agency vs. Property Investor Paying Cash, and calculate how much the agency fee, the additional fees, the repair costs, and mortgage payments for 3 months, and so on, would work out to be.

You’ll be surprised how close they really are, and, the real added bonus, consider the time you have saved, too. Only then can you decide if the offer from the cash buyer is a good one or not.

#6. Do Not Part with Money Upfront

Paying money upfront or in advance is something that scam artists – and only scam artists – will ask you to do. Under no circumstances whatsoever should you be the one handing over the cash – even if the reasons they give sound legitimate.

Any talk of an “application fee” (a common scam) is 100% fake – do not entertain anyone who tries to pull this stunt on you.

Cash buyers don’t need you to apply for anything – they will take care of the whole process. If they request money, find another property investor.

#7. Stay Local or Go National?

Like most products and services, local cash buyers tend to be in greater demand than the more distant competition. There’s an obvious reason why: People believe that local cash buyers would be able to provide a far more suitable offer as they should know the area.

However, although true to some extent, it’s not as important as you might think. If your house is in an area with a few known problems – issues that might lessen a property valuation – a national company may very well not know this.

In other words, it’s the proverbial swings-and-roundabouts. However, put simply, a company’s reputation really is far more important.

That said, sharing local knowledge with a cash buyer can smooth the water and provide a common link when meeting, assessing, and selling the property.

#8. Be Yourself

Cash buyers are professionals. They’re not interested in the fixtures or fittings in your home or the first impression a homeowner displays. They’re more interested in the willingness of the homeowner to sell.

Experienced house buying companies regularly speak to all kinds of homeowners, and they have no interest in judging you or your house. Just be yourself.

#9. If You Have Questions, Ask… Now

The house sale process with a cash buyer is a more simplified one compared to a sale handled through a real estate agent. However, you will still have questions, and it’s vital to ask them. Don’t be left in the dark about anything – they should be more than happy to explain and ensure you understand.

For example, filling out legal forms and working out a home’s accurate value can be challenging. If in doubt, ask. If you want to know why a cash buyer only offered a certain amount, they should be willing and able to inform you why.

#10. Sell Only When You 100% Trust the Company

As we mentioned earlier, a company’s reputation is extremely important – your interactions with them, based on this reputation, is how you build trust with that company and have the confidence to know they will deliver what they say.

Furthermore, professional cash buyers will work hard to ensure all the parties concerned are happy with the process.

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Better Off Home Buyers Buy Houses For Cash

At Better Off Home Buyers, we can make you an immediate offer for your house at a fair price, the whole process can take as little as 7 days, and you’ll receive the return on your house sale fully in cash.

When you add up the time you save by working with Better Off Home Buyers, the hassle-free experience, and the money you save on commissions, fees, and holding costs while you wait to sell your house yourself, selling to a professional house buyer could well be your best viable option.

Simply fill out the short form below or give us a call at 503-809-4855, and let’s learn more about each other. You will then receive a “no-obligation-no-pressure” offer for your property. 

Remember, our process is simple – you can even close on the date of your choice. You could potentially save thousands of dollars (as well as months and months of your time) by contacting us today.

Scott

Hi, I'm Scott Dalinger a real estate investor in Portland, Oregon. I focus on helping homeowners and rental property owners out of negative situations by offering cash for their property. I research and write about real estate on my business website.

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