So you have decided to sell your house directly to a cash house buyer here in Fountain! Well good for you! This blog post is for you
Selling your house directly to a cash house buyer instead of listing your house out on the open market has been more and more popular in the recent years. It really does save you a lot of money especially on real estate commissions or realtor fees. Another reason people tend to lean this way is just time.
More times than not, selling directly to a cash house buyer drastically cuts down your time. If you list the house with a real estate agent even if it does sell quick, the process usually takes about 30-60 days or longer especially if the seller is a stickler on price.Time could also be a factor in a recent divorce, job relocation or if you inherited a house and you live in another city or another state.
It only makes sense that you have concerns about making a mistake that could cost you profits, time or additional stress. After all you are selling for cash fast, to prevent headaches not make more of them.
By taking the time to understand the most common errors sellers make, you can put yourself in the driver’s seat and feel secure about the method you choose to sell your home. So read on as we explore three mistakes you should avoid when selling your house directly in Fountain.
Value
While the emotional value you personally place on your house is understandable, not very often does it equate to the current market vale which is the first very common mistake when selling your house directly in Fountain. Instead you can get a better idea of what houses are selling for here locally in Fountain by using Zillow or realtor.
You can get an idea of what houses similar to yours in square footage, age, condition are selling for. They have filters you can use as well. Generally it’s best to find sold houses similar to yours within the last 6 months to get an accurate value. If you can find houses that are usually within half mile away or houses that are within your same sub division that would be the most ideal.
Professional house buyers like us at Integrity Home Buyers Of Colorado want to be able to help sellers make an educated decision about the direct sale of their home here in Fountain. For example when we are giving you an offer we usually include what other buyers have sold for houses here recently similar to yours in cash sales.
It’s a way we can stay competitive in the market as well as you can make sure you are getting the most money even if you are selling for a slightly less price since its a cash sale.
The Contract
The other pretty important thing you should avoid when selling your house directly is not properly getting everything in writing. You would be surprised how often oral agreements do not make it to the official purchase agreement.
You want to make sure that the investor or cash home buyer gives you a purchase agreement that states the purchase price. If it is a cash or a hard money loan.You also want to get an idea on if there is an inspection period or if the offer is based off a partners approval or lender approval.
Not every cash house buyer pays with actual cash. Some use lines of credit, some hard money loans or some cash.
You just want to be clear on any hiccups or hang ups. Another pretty popular one is giving you an offer with an inspection period. And during that time the investor has a handyman, or a contractor of both come into the house, over estimate the repairs with the hopes of getting a price reduction.
They you will find out when the inspection period ends that not only are they not buying the house, they want a reduction in the price. You just have to be careful to get everything in writing and make sure all of your bases are covered. Remember this is usually the job of a real estate agent, so since you are not hiring them you have to do some of these things yourself.
The Buyer
Not taking your time to thoroughly vet and do your research about the potential cash home buyer you’re working with is the last mistake. It’s essential to know who it is that you are dealing with. Do they have an actual company name? Do they have any other reviews on Facebook or Google that tells you they have bought houses from other people?
You can get a good idea of the potential house buyers legitimacy by the type of offer that they make you. If they give you an offer that is not reliant on a a lengthy inspection period that is a pretty good sign.
You have to be somewhat careful about what the industry calls “wholesalers”. Wholesalers are basically middlemen. They act as though they are a cash buyer, they give you an offer with an inspection period of usually 7-21 days. This is pretty much the first red flag. You may be thinking to yourself this. If they give me an all cash offer what’s the point of the inspection period lasting 7-21 days?
Well it’s because they don’t actually have the money to close on your house. They rely on finding other cash buyers ( like us) to step into their contract with you. The actual cash buyer steps into the wholesalers contract and then closes on the sale. The buyers pays the wholesaler a fee, you sell the house, and the buyer gets a good deal.
Now we aren’t knocking the wholesaler. We are just saying to be careful and know what you are dealing with. It’s ok to be working with a wholesaler, just need to know the risk. If they can’t find a buyer for your house then they will back out. And you won’t really know they back out until the day or day before the inspection period ends.
It’s nice to just know what kind of options you have when selling a house directly in Fountain Colorado.