What Is the Process of Selling My House for Cash?
What’s the most common misunderstanding about selling your house for cash?
It isn’t that purchasing a home with cash is only for private investors. And it isn’t just for people looking to cash in on the house-flipping craze. The biggest misconception is that a buyer will physically offer you hard cash automatically.
It’s a little more complex than that. What selling your house for cash technically means is that a property buyer will forego traditional financing options and use their own cash source to make an offer—even in a downward market.
But there’s a certain reason why property buyers and investors are willing to do so.
Long Term Resale Value
When a property buyer evaluates your home, they’re not necessarily concerned with either an immediate increase or decrease in its value. They’re thinking further down the road—in some cases, five years or more.
A legitimate home buying company, such as Enlight Homebuyers, will look at both the current fair market value of your home and weigh it against developing trends in both your neighborhood and surrounding communities. They’ll review both the current condition of your home as well as both the cost, labor and time involved in improvements. More importantly, they’ll frequently have the insight and experience to recognize any damage to a home’s integrity which owners may not even be aware of.
How Does the Process of Selling Your Home for Cash Work?
It frequently begins with sellers conducting research on their own into the current sale of homes in their neighborhood. For many sellers, this can be as simple as a review of online sites such as Zillow or Redfin.
However, some may choose to contact a professional appraisal service for a more informed opinion. Keep in mind that both options are simply ballpark estimates and may not reflect the actual value of your home.
The next step requires more discernment: finding the right home buying service. While national companies have a well-deserved reputation for being trustworthy, they frequently don’t have the specialized insight that regional property buyers do. More often than not, they’re placing your home’s value against the national median value—which is rarely an accurate reflection of sales in your neighborhood.
Be wary of any companies who have neither a professional website nor registration with the Better Business Bureau. They may claim to be independent contractors or investors, but they’re frequently fly by night scam artists. And under no circumstances will a legitimate property buyer request payment or a copy of your title in exchange for their evaluation!
Once you’ve narrowed down your choice of property buying services, the next step requires inviting them to evaluate your home. A property buyer will typically make a thorough examination of the condition of your home (they may choose to bring along a professional inspection service) and then weigh its value against current sales in your neighborhood and any cost of improvement. They’ll then make an offer, either directly onsite or offsite after further research. The entire process itself can frequently take as little as two weeks.
Unfortunately, many sellers can find the actual value of their home to be slightly less than they expected. While this can be the most disappointing part of the process, they haven’t considered:
- The fair market value vs the assessed value of a home.
- Both the current and historical amount of time similar homes have stayed on the market in their neighborhood.
- The actual condition of their home as well as the amount of time, labor and materials involved in any necessary improvement and maintenance.
- The length of time and costs involved in closing as well as lender approval.
- The average commission for a realtor is roughly 5 to 6 percent of a home’s final sales price. That’s after their clients have negotiated for a lower cost.
Many sellers may want estimates from multiple property buyers, and that’s actually recommended. But generally they find the estimates don’t differ too dramatically.
You’re Under No Obligation to Sell to a Cash Buyer
Each situation is unique when it comes to home sales. And while selling your home fast for cash may provide you with an immediate sale, it’s not for everyone. Many initially eager sellers choose to wait out dips in the market, frequently to their advantage.
You’re under no obligation to sell your home, either to a property buyer or through a traditional realtor. Nor should either try to pressure you into selling. But selling your home is as much of a life changing decision as purchasing. Make certain your decision is an informed one.
If It’s Right, Contact Enlight Homebuyers
If you do decide that selling your house for cash is the route you want to take, then contact Enlight Homebuyers today. We are the leading cash home buyers in your area and would love to help you out. Give us a call at 1-800-655-8322 or fill out the form below and we will get in touch with you as soon as we can!