In the current seller’s market, you are likely to receive multiple offers on your home if you have listed it for sale on different platforms. The offers can vary largely in terms of pricing and modes of payment.
While most people will opt for the traditional listing process, there are some sellers who urgently require cash or need to sell their property as soon as possible. If you are one of the sellers who want quick and hassle-free deals, selling your house for cash is the fastest way to go.
This is because the buyer will pay will the cash up front and time is saved on the financial and loan approval process. However, there are many important things to consider and know when taking shortcuts.
This article explores details on how you can sell your house fast and urgently for cash. In addition, it also covers all the key pointers you need to know to make a profitable deal. Let’s dive in.
How to Sell Your House Fast/Urgently for Cash?
There are many homebuyers on the market who are willing to pay in cash when buying real estate. This can include large real estate firms or even individuals who flip houses for a living.
Below are guided steps to aid you in the process of selling your house urgently for cash.
Step 1: Prepare and Move Out
Ensure that your house is in the best condition possible before initiating any kind of deal. Even small nuisances can cost you a lot in terms of money as they can be a negotiating factor for the buyer.
If the house needs major repairs, it is wise to make the repair first and then list your home for selling. However, this can be ignored if the case is really urgent.
You have to remove all your belonging and photographs from the home. Any buyer will try to visualize himself living in the home before buying it.
Personal belongings can prove to be a huge turnoff for potential buyers and it empowers the idea of the home already belonging to someone else. Also, make sure that there are no traces of dirt and garbage and that the home feels brand new even though you have lived on it for years.
Pro Tip: Presentation is vital in securing good deals for your home. You can also hire an interior designer as the ROI will be huge when the deal is finalized.
Step 2: Search and Choose Your Client
If you have set the pricing right, there should be no problems in receiving multiple offers. However, not everyone has instant cash to finance the house.
Thus, your options to choose the buyers can be limited. Below is the list of some potential buyers for your house.
· House Flippers
House flippers are desperate for great deals and may even resort to upfront payment in cash if the deal is lucrative for them. They can be a single person, a group of individuals, or a small company.
You can get in touch with your local flippers and ask them to quote their price. Flippers make money by purchasing houses that need repairs or renovations and selling them at an elevated price that covers all their costs and effort.
In some cases, you will also get price quotes from flippers before you even list your house anywhere. They can get this info from the for-sale sign or from close friends. This lets them have an advantage over their rival flippers.
Pro Tip: Unless you are in an emergency, it is best to consider and compare offers from multiple flippers. This can aid you in making a sound financial decision.
· Real Estate Companies
You might have seen advertisements on TV and social media of the companies mentioning that they will buy any house irrespective of the condition. Their taglines usually include phrases like ‘we buy worthless homes’ or ‘every home has a price and we are here to pay it.’
These advertisements can also be seen on roads and junctions that receive high traffic. While there are also scammers in this industry that you must be aware of, most will prove effective to sell your house quickly.
Real estate companies can also be helpful in determining the price of your house if you are unsure what price tag to set. They will do a thorough analysis and quote you a ‘take or reject’ offer.
One more thing to keep in mind is that selling your house urgently for cash will result in some financial loss as these companies keep huge profit margins when buying old houses.
Pro Tip: Make sure to only work with reputable companies when making huge financial decisions such as selling your home.
These tech businesses evaluate your home using advanced software. They are usually large real estate firms that send through an instant cash offer on any house they are interested in.
One downside of selling your home to iBuyers is that they take up to 3% commission on each deal. However, this is not a problem for most sellers who want some urgent cash.
· Leverage Social Media
Oftentimes, people do not realize and leverage the power of social media. It is such an amazing innovation that has contributed to the marketing and sales of all other industries.
Today, Facebook and Instagram ads are far more effective than any road signs or TV advertisements. Join a real estate group on social media that operates around the place you live in and post the details of your house and the type of deal you are looking for.
You can also go further to run paid advertisements targeting people around your city. This can work wonders because sites like Facebook and Instagram collect user information. And your advertisements will mostly go to people who are interested in buying and selling real estate.
Pro Tip: You can spend some hundred dollars on a marketing firm to run advertisements for your house on Facebook and Instagram. Also, make sure to hire a professional photographer to take compelling shots for thumbnails.
Reasons to Sell Your House for Cash
If you have ever been stuck in a loan approval process, you will know how convenient it is when you receive the cash upfront. There are usually minimal waiting times and very less chance for the deal to get canceled.
Below are some reasons to sell your house for cash.
Really, the most important reason to sell your house for cash is convenience. There are no lenders involved in the process which simplifies everything.
Also, many house deals that are financed by bank loans have a chance to fail because the loan might not be approved. Selling your house for cash helps to avoid the rigamarole of the loans and delayed payments.
As no lenders are required, the timeline is shortened significantly. There are no risks of financing and the deal has almost no chance of failing after you receive cash.
Usually, when buyers are willing to pay cash, they have all the money in their bank ready to be transferred to the previous homeowner. Thus, it is a really convenient process than juggling home offers and negotiating with multiple people.
Staging and Repairing
When going through the traditional listing process, there will be many cost and quality assessments of your home. This can be frustrating as more and more clients start finding faults in properly negotiating with you. In some cases, you are also entitled to repairs and maintenance work.
Real estate businesses that buy in cash will accept your house in its present condition. No repairs will be required as the house will be renovated completely before they flip it.
Thus, selling your house for cash also saves you from all the hassles and troubles of multiple negotiations and preparations.
Pro Tip: Selling in cash means there is no delay in payment and other processing. Thus, if you can compromise some real estate value for convenience and quick closure, selling in cash is wise.
Disadvantages of Selling Your House for Cash
1. ‘Take or Reject’ Deals
You must understand that there is a reason why not everyone sells their house for cash. For example, when selling for cash to large real estate firms, they offer a take or reject the deal.
Desperate homeowners who require some cash urgently, have no options other than to accept the deal because it might take them some time to find another one. And who knows if the next offer will be any better? This is especially considering the fact that you are asking for cash.
2. Missing Out on Better Deals
When a lender and loan process is involved, the buyer usually will have more cash to expend. This will be beneficial to you because you can easily strike a better deal with these buyers.
In the case of large real estate firms, the deals are almost non-negotiable. Furthermore, multiple buyers will bid for your house in the traditional process which will help you to accept the perfect deal.
3. Easy Deal, Less Value
It is a well-known fact that a person only looks for immediate money when he is in trouble or is eager to invest that money in something else. This usually calls for a desperate situation to sell your house.
Real estate businesses and house flippers know these things and thus will take advantage of your situation to land a better deal for them. Thus, even though your deal was smooth, you’ll more likely end up with less money.
Pro Tip: Selling in cash usually gets you only about 80% of your home’s true worth. Thus, if you can wait for payment and can handle the extra work, it is best to go with the traditional method.
Should You Hire an Agent When Selling Your House for Cash?
Why not? In fact, you should always hire an agent when selling your house whether it is for cash or something else. Buying and selling houses is a big financial transaction.
And thus, even small negotiations can result in big savings or big losses. Furthermore, real estate agents have lots of connections in the industry.
They can easily find good clients who are willing to buy your house. Thus, it can also help you save time in finding a potential client.
If you hire a real estate agent, they will charge a commission fee once the deal is complete. However, they have licensed professionals and they know what they are doing.
More often than not, they will not only hook you up with a better deal but also offer premium advice that can really change your perception when buying or selling a house. The cost that they save or make for you will be much more than what you will actually pay them.
Even if there is not much financial profit in hiring an agent, you will still have access to their insights and their years of experience in the industry. Thus, we always recommend hiring an agent when selling your house.
Pro Tip: There are many online sites that offer real estate advice for free. You can ask them about the deal if you are reluctant to hire an agent.