3 Things to Watch out For When Selling Your Home for Cash

While selling your home to an investor can have many advantages, it should also be considered carefully. While selling to an investor will alleviate a lot of stress, it is unlikely that you will receive more money than a traditional sale. You should always hire an attorney to look over the contract, make sure to have an escrow account set up, go through a thorough home inspection, and get a HUD settlement statement before closing. Then you’ll need to pack your belongings and move out of your home, sign closing papers, and load up your moving truck.

Setting a realistic price

To get the most value from your home, you must set a realistic price. Most smart buyers will negotiate, so it is important to set a realistic price. Most sellers want to list their homes for a price that will attract buyers, but also give them breathing room to negotiate. In such situations, setting a price below market value is an excellent strategy. However, it is important to note that underpricing your home may not always result in the most profit.

While the majority of buyers will use financing to purchase a home, it is important to remember that most sellers will lower their asking price more than once to make the sale. In fact, the Zillow Group’s Consumer Housing Trends Report says that a full 64 percent of sellers will lower the price a second time. Despite this reality, it is crucial to maintain a competitive asking price to increase your chances of getting top dollar.

Repairing issues before selling

Aside from the price difference, a seller can expect to receive up to 70% of the home’s market value after repairs. A cash investor can offer up to 60% more than a similar home if it needs some repairs. Most cash investors are local and can offer a better deal than a contract broker. Repairing issues before selling your home for cash can make it more appealing to buyers and increase its sale price.

While a buyer might not want to spend time and money fixing major issues before buying a home, a seller may offer to provide a repair credit. If a buyer requests repairs before they sign a contract, the seller can use that credit as a bargaining tool. Although this option can be risky, it is an option to consider if you’re not in a rush to sell your home. When evaluating whether to repair issues before selling your home for cash, make sure to weigh the cost against the value you expect to get.

Cost of closing costs

While you should expect to pay closing costs when selling your home for cash, you can still negotiate them. The fees paid to a real estate agent are typically negotiable. The commission is usually around 6 percent and is split between the listing and buyer’s brokers. On a $1 million apartment, this fee equals $60000. In addition, you may be eligible for a buyer’s rebate on your broker’s commission.

The commissions charged by listing and buyer’s agents are paid by the seller. While a real estate agent’s commission is not mandatory, they are highly recommended. You can save yourself hundreds of dollars by shopping around for a good real estate attorney. Ask friends and family for referrals and look up online reviews of potential attorneys. Make sure to ask about their rates and compensation policies. Finally, be sure to consider if you’ll need a real estate attorney or not.

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