There are several reasons a homeowner may want to sell their home to a cash home buyer and avoid traditional real estate methods.
For one thing, realtors can be incredibly expensive. In most real estate transactions, the seller pays for their realtor and the buyer’s realtor. Each agent charges about 3% of the home’s value for their services.
If you sell your home for $200,000, that means you’re paying $12,000 in realtor fees.
Alternatively, in time-sensitive situations, homeowners can’t afford to spend months prepping their home for sale, listing it on the market, negotiating with buyers, and waiting for the deal to close.
Regardless of why you might be looking at using a cash home buyer, there’s one important question you need to ask: How do you choose the right one?
Not sure where to begin? We’re here to help. Keep reading for the top seven factors to consider when choosing a cash home buyer.
1. What Type of Houses They Buy
First, it’s important to understand what types of homes cash home buyers are willing to buy.
For example, if you’re avoiding listing your home traditionally because the home is in disrepair and you don’t have the time and/or money to do anything about it, find out if they buy as-is houses.
Typically, this is one of the biggest perks of selling to a cash home buyer. However, not every cash buyer will make an offer on a house that’s in poor condition or has major issues.
Research each potential company to find out what types of houses they buy. You can find more details on their website or contact them directly.
2. How Quickly They’ll Give You an Offer and Close on Your House
As noted above, many homeowners selling houses for cash are doing so because time is of the essence. A traditional home sale can take months, even if everything goes smoothly and they find a buyer in the first couple of days of listing their home.
Furthermore, a traditional home sale has the potential to fall through at any point in the closing process. It’s not unheard of for something to come up in underwriting that negates the contract days before closing on a sale.
As such, one of the most important factors to consider before choosing a cash home buyer is how quickly they can get things done. How soon will they inspect the house and provide an offer? If you accept their offer, how soon will they be able to close on your house?
3. How Much Money They’re Offering
Let’s talk about the big one: money. Finding the right cash home buyer may come down to choosing the company that’s willing to give you the most money.
When using a cash buyer, you need to accept that you probably won’t get as much for your home as you would using a realtor and selling the house traditionally. However, that doesn’t mean you need to give away the farm.
Find a cash buyer who will give you a fair offer based on the condition of your home, your neighborhood, and the current real estate market.
4. References and Reviews From Previous Homeowners
When using credible companies, selling houses for cash can be a wonderful, convenient solution to your problems. However, there are also dishonest companies and individuals out there looking to take advantage of desperate homeowners.
To avoid falling for a scam or entering into a contract with an untrustworthy buyer, do a little research to find reviews and testimonials from other homeowners. Find out what they have to say about their experience working with the cash home buyer in question.
These reviews will do two things. First, they’ll verify that the company is legitimate. Second, they’ll give you insight into the company’s customer service skills and whether or not their customers walk away happy.
5. Consider Experience and Credentials
Another important factor for choosing a cash home buyer is their real estate experience. How long have they been buying homes for cash? How long have they been serving homeowners in your area?
When working with companies that have been in business for a while, you don’t have to worry about a deal falling through for unexplained reasons. You can also take a little more comfort in the company’s credibility. Furthermore, an experienced company will be more likely to value your home at a fair price.
You should also see if the cash home buyer is accredited through the Better Business Bureau or any other agencies that can verify their credibility.
6. Which Cities They Serve
Finding the right company to buy your home for cash also comes down to logistics, like availability and location. Most cash home buyers operate within a specific area(s). Before hiring a company, make sure you know which cities they serve.
The last thing you want to do is vet all of your options and end up choosing a company that doesn’t cater to your area. We Buy House Memphis serves multiple cities in Mississippi and Tennessee.
7. Circumstances That Could Inhibit a Sale
Finally, when choosing a cash home buyer, make sure your current circumstances won’t get in the way of the sale. As we mentioned earlier, this could pertain to the condition of the home.
For example, the company may (or may not) buy the house if:
- There are major structural issues
- There is mold
- There is a pest infestation
- The home has undergone major damages from a fire, flood, or another natural disaster
However, damages may not be the only limiting factor. What if your home is being foreclosed on by the bank? When will it be too late to sell to a cash home buyer?
To ensure a smooth sale, make sure you’re completely upfront with whatever company you choose to buy your home.
Looking for a Cash Home Buyer in Tennessee?
Want to sell your home quickly? Wouldn’t it be nice to avoid realtor fees and months of haggling with potential buyers?
We can help. We Buy Houses Memphis specializes in serving homeowners by providing fair offers for their houses. We are cash home buyers who got into the business to help homeowners, not take advantage of them.
Contact us today to get your free cash offer!