So you've finally decided to sell your house. After many sleepless nights tossing and turning unable to shut your brain off you've decided 'this is it, I'm ready to move on.'
You're ready for greener pastures.
Not so fast, just yet...
You need a plan first, right?
You need to jot down some questions and get some answers before you make a phone call to a cash investor wanting to buy your property.
Some questions such as:
-Is your house a distressed property? Does it need a bunch of repairs and you're in no financial position to, nor do you want to deal with it? Or is it generally in good condition and just needs some updating?
-What are you going to do once you sell? Pay off bills and be debt free? Want to move to someplace where it's warm like Florida?
-Where do you want to go? What's keeping you here? Family? Friends? Nobody?
-How much do you need? What do you have to have to get a fresh start? A new place to live? Moving expenses? Downtime till you land another job.
-How soon do you need to sell? ASAP? No hurry, time isn't a factor?
-What do you need to do beforehand? What loose ends do you need to get squared away first before you uproot? Do you need to have a yard sale to raise some cash and get rid of some of your stuff?
-How much do you owe? Is your property paid off or do you still owe on it? That'll affect the offer a cash investor gives you.
-Is there any liens on the property that you forgot about? A city lien? A contractor lien? If so, how much?
-Is your property in selling condition? (with a cash buyer that's not necessary)
Got your list together? Answers to your questions? Good, because you don't want to fly blind. Pilots use instruments to get to destinations, builders use blueprints when building a structure. Just as you need to have an outline on what your Plan B is once you sell your distressed property to a cash investor.
Unlike the traditional way of selling a house through a real estate agent whereas you might have 6 months to get ready being it might take that long for an agent to find a buyer who is qualified for a bank loan, termite inspections, water inspections, heating/cooling inspections, electrical inspections (generally an overall property inspection top to bottom), whereas with a cash buyer 30 days at the most (often less) and you need to be ready to exit the premises (unless prior arrangements have been made with the cash buyer).
Things move much faster with a cash buyer, in a matter of weeks versus several months with an agent. So you need to be ready and have your 'ducks-in-a-row'.
Sell My House for Cash Now
So you sit down and Google 'sell my house for cash now' seeking out some cash investor to make you an offer.
One thing to keep in mind is you'll generally get much less for your distressed property with cash but you'll be done with it and can move on much sooner, whereas, with 'selling with terms' such as on a land contract you'll get a better price but it'll be down the road a ways, as in 5-7 years down the road.
A cash investor will follow-up with you over the phone and ask you a bunch of questions before he makes a trip out to your house. He's generally not going to just throw out some random number to you without doing some due diligence first, usually online.
There is different software programs and websites a cash home buyer investor will check out that will tell him what the property taxes are, the fair market value, the surrounding properties for sale, how long they've been for sale, the overall neighborhood in general, the amount of foreclosures in the area (which affect property values), the crime rate, etc.
All the above due diligence, and then some, will give the cash investor (like us) a snapshot of whether your particular property is actually something they'll want to pursue further. If that's the case, they'll set up an appointment to walk-through the property, take some photos, measurements, etc and probably make you a cash offer depending on all those factors he's previously researched before coming out to your house.
Or, after all the due diligence, quite possibly your distressed property in Charlotte, or wherever town you are, doesn't meet the investors criteria for one reason or another and they'll pass on it.
Cash for My House
Here's a newsflash for ya:
If you really think a cash investor is going to whip out his checkbook and pay you the price you think your distressed home is worth, you're sadly mistaken.
There is a rare exception to that but it is very rare.
The reality is no cash investor will pay you the retail value of your home. Very, very, very rarely will you even get fair market value for your home from a cash buyer. A cash buyer is buying your home 'as-is' and there is way too many variables that can spring up costing thousands of dollars once the paperwork is signed and it's a done deal and you're on down the road riding into the sunset with pockets full of cash.
-holding costs. It might take months before the house is cleaned up, rented or sold.
-mechanicals. The furnace might go haywire, costing $1000's.
-septic system. Might need to be replaced. Costing $1000's
-foundation issues. BIG buck$ to take care of especially if heavy equipment is brought in
-roof. Could very well need replacing. Cost: $1000's
-infestation. Termites, Bed bugs. You name it.
-mold issues. Again BIG buck$.
-code violations. Red tape = delays = $
The above list is just a general smidgen of expensive repairs that could get very costly and need to be figured in when making a cash offer to a seller.
There are so many things that could possibly be very costly that are hidden beneath the surface and not seen by the naked eye that a cash investor has to figure in his offer to you-just in case-when he makes you an as-is cash offer. Especially on an older home.
If you're looking to get the maximum price for your home, then you want a real estate agent, not a cash buyer. Just be prepared for the long haul instead of a quick exit to your fresh new start on life riding into the sunset you'd have with a cash buyer.