It’s definitely tempting to think about selling your home for cash on a ‘We Buy Houses’ site, but is it really the best option? Before you move ahead with this plan for selling your home, there are some realities that you need to be aware of, to avoid scams and be sure that you get the deal that is the best for you. So before you get started, be sure you read this.
Know your audience
Before you even look at “we buy houses for cash” sites, you need to know who you are going to be selling to, because not all cash buyers are the same. So who are these people? The key is that unlike most home sales, when it comes to cash buyers, not all of them will be buying your house to live in it. iBuyers purchase homes in fairly good condition at a high volume, turn them around quickly, and then easily sell them online. There are also buy-and-hold investors that purchase properties to rent. Another potential buyer is the fix-and-flipper that renovates tear-downs and then resells them once they are ready for their next incarnation.
Evaluate your options
You are probably going the selling for cash route because you just want to get the transaction completed as soon as possible. But even if you are among first-time home sellers, take a step back first, because you want to be sure and do your research ahead of time — jumping into a deal without the full picture can lead to problems later. But you don’t only have scams to think about, selling for cash may also not be the best investment. Real estate experts have shared findings that investors that offer to buy homes quickly for cash usually offer around 65% – 94% of a home’s value. Remember that you don’t necessarily need to work with a houses for cash site to sell your home this way. A real estate agent can also get you in touch with an auction service or other route to selling your house for cash.
Go in with eyes wide open about scams
Scamming is a reality of houses for cash sites — like anything else in life, if something seems too good to be true, it probably is. The risks here go beyond not getting the full value of your home (and be sure you check that value with a home value estimator before getting started), and being aware of the potential scams can help you avoid them. One of the more common scams is a contract bait and switch. What usually happens is a buyer may say they’ll write up a verbal agreement, but what results is far from what you were expecting. A related scam preys on sellers who may not read contracts fully, and then end up signing a deal with altered info like sale price, ownership, and mortgage terms. Equity skimming is another one to watch for — a title is gained for your home, the home is refinanced, someone takes the equity and walks away.
With all of these factors to weigh, selling a house for cash may not be as speedy and as you might have hoped. The best strategy to sell your house for cash is to research your buyer and triple check your contracts — a trusted third party can help verify the legitimacy of the offer before you sign anything. With all of this in mind, you’ll have a positive outcome with cash proceeds from your home.