Enter “sell homes for cash” firms. These, and similar types of cash buyers, provide a quick solution for many homeowners facing foreclosure. They buy homes “as is,” which means, without any preparatory repairs or prep, for their present state. This presents both an immediate cash injection to the seller and an opportunity for the seller to come back with a higher offer. Here’s how they work.
Sellers who opt to sell homes for cash usually have a few options available to them when preparing for the closing process. They can accept the closing date as is, with the closing costs already factored in, or they can try to push the closing date back a bit, getting as much time as they need to make necessary repairs, etc. The first option eliminates one of the most common expenses for a short sale: have We Buy Houses Houston set up the deal. The second almost always involves some degree of expense to hire a realtor, especially if the neighborhood the house is in is a popular one where buyers search for a home.
Unfortunately, since buyers will not see the house before the closing date, sellers will almost always need to repair minor repairs before selling the house. This will run the seller into hundreds of dollars, potentially negating the homeowner’s amount for their house. To avoid these kinds of extra expenses, many homeowners sell their homes without repairing any problems themselves.
A good way to circumvent the need to repair something before selling is called “cleaning out.” The idea here is to allow the seller to clean out all of the major problems they have on hand before the property goes on the market. Some homeowners do this before selling, but many put it off until the last minute so that they can change things around to make them look better on the listing. For example, many people who buy houses clean out their kitchens and bathrooms before putting their property on the market so that potential buyers will see how clean they are.
Homebuyers who are thinking about buying a home in an affluent, stable, and well-kept city area should know that they should avoid any home they see that does not have at least some level of basic homebuyer repairs. Unfortunately, many people who buy houses in the city’s more affluent areas ignore this rule and end up paying thousands of dollars in unnecessary repairs after the home sells. The seller will not usually be this honest, but even a small, simple fix to a problem can cost you thousands of dollars in labor and materials. The simple truth is that you cannot expect to sell a home for under the fair market value if you have not taken care of basic issues like cracked foundations, exposed electrical wiring, or other problems that might need to be addressed before you list the home. As a result, homebuyers who list homes with minor or no repairs in good locations are setting themselves up for major losses if the house doesn’t sell at all.
The simple truth is that homebuyers willing to accept reasonable seller concessions should buy houses with fixings to reduce their potential loss. This is a brilliant strategy because it makes the seller much more willing to make repairs, which will increase the chances of selling the house at a profit. For example, if a house has substantial cracks, then a homebuyer may get away with just repairing the damage and listing the property for significantly less than the listing price. On the other hand, if a home has moderate and severe cracks, it will be nearly impossible to sell without some structural fix. Therefore, the more repairs a home requires before it goes on the market, the lower the seller concessions that homebuyers are likely to accept.
Another factor that affects the number of concessions that a seller will make relates to the amount of money that they will receive for selling the home. In many instances, sellers will be willing to drop several thousand dollars in down payment and closing costs in exchange for a cash buyer. Real estate professionals agree that cash buyers are almost always willing to pay a substantially higher price than they would have been willing to list the home for on their own. If you are a homebuyer in the know, you should ask your realtor which homes typically go for more in cash buyer deals (based on a comparison of similar homes within the area) and then compare them with the asking prices listed by different sellers in your area. You will quickly learn which sellers are offering the highest cash offers.
If you are a new home buyer or have never considered cash buying, you should definitely check out properties currently for sale by the owner. While it can take time and effort to learn the ropes, you will undoubtedly reap the rewards by becoming one of the savvy homebuyers who can quickly and easily flip an affordable city home into a much more lucrative investment. We buy houses for our own personal use and pleasure, but we also profit from our investments. By taking advantage of the opportunities that we are afforded, we ensure that future generations can enjoy the great city life as well as the comfort of owning their very own home.