So, you need to sell your house fast for cash? While selling for cash might mean selling for cheap in the past, that connotation has changed in recent years with newly emerged real estate buying strategies. Powered by AI-based pricing evaluation, streamlined iBuying processes, and diversified business goals, a new generation of cash buyers started to buy properties at a large scale, racking up thousands of transactions per month and growing at a breakneck speed. By finding the right buyer, selling for cash no longer requires the steep discounts we’ve been led to expect in the past. In this article, we are going to break down the major ways to sell a house for cash in this new world so you can fetch the highest cash offer possible.
When it comes to selling a house fast for cash, going without a traditional real estate agent is usually your best bet. While a traditional agent comes with many benefits such as marketing exposure, it’s not for everyone. To start, it takes longer to close a transaction with multiple strings attached during the process such as contingencies on buyer financing, inspection, and appraisal. According to the National Association of Realtors, the national average for a house to be sold on the open market is 62 days, with 29% of the transactions needing to either be delayed or canceled with no fault on the seller. This is before we add up the various costs associated with selling the traditional way such as staging, vacancy, and seller concessions/repairs. Cash buyers, on the other hand, take most of the uncertainties away with upfront cost schedules and guaranteed closing. But what’s the catch? You might ask. Well, while not as steep of a discount, an offer from those new generation of cash buyers might still come in lower, ranging from 70% to 98% of the fair market value. To learn more about the major types of cash buyers, read on.
iBuying is a new concept being implemented by big and small companies alike such as Zillow, Offerpad, and Opendoor. Collectively referred to as iBuyers, they use technology to make an all-cash offer on your house instantly. They typically charge a transaction fee of 7%-10% plus the cost of selected repairs. Pricing strategy is tailored to each iBuyer’s goal and is highly variable, up to 98% of fair market value. With more and more iBuyers coming into the market every single month, it’s important to compare as many iBuyer offers as possible to avoid leaving money on the table. Additionally, to get the most accurate offers, make an effort to fill out each iBuyer’s offer request with as many details as possible. Plan on spending at least half an hour per iBuyer filling their initial offer request. Read on to learn more about how BustOffer’s offer matching program helps put your property in front of all potential iBuyers.
While iBuyers price their offer based on expected profit they could make by reselling it on the open market after repairs, buy-and-hold investors seek to rent out the properties. Unlike iBuyers, they use expected rental cash flow to evaluate property value and can come up with a very different offer price. Similar to iBuyers, technology advancements enabled the new generation of buy-and-hold investors to scale their business to a new level, with many providing instant offer evaluation throughout the United States. Because of their different pricing models, selling to a iBuyer without checking with buy-and-hold investors could mean missing out on a higher offer. How do you find them? Buy-and-hold investors do not usually advertise themselves to individual sellers. They prefer long-term business relationships and tend to work with larger institutional sellers and cash buyer networks to maximize volume. Read on to learn about how BustOffer can help present your house to dozens of large buy-and-hold investors with the click of a button.
Flippers and Wholesalers
Ever see ads in your neighborhood or online on “We Buy Ugly Houses, Any Conditions”? We are talking about flippers and wholesalers. Flippers buy distressed properties with good bones at a deep discount and make a profit by selling it after a complete remodel. Wholesalers on the other hand try to sell their purchase contract to another buyer who’s willing to pay a higher price, pocketing the difference. Both flippers and wholesalers tend to be smaller players in a local market, and their offers usually come in lower than the other types of cash buyers. Nonetheless, BustOffer has dozens flippers and wholesalers on its network, see below for details on how we help sellers find the best cash offer.
3 More Things You Should Know Before Selling Your House For Cash
1. BustOffer is a leading cash buyer network that aggregates local and national cash buyers.
We provide a one-stop-shop solution that helps sellers find the cash buyer that best fits their needs. Within 24 hours of submission of the offer request, sellers will receive a report on all matching cash buyers and their corresponding terms and offer price. Submit your offer request today to find out the best all-cash offer on your house.
2. Having as many offers as possible to choose from is key to fetching your best cash offer.
Accepting an offer without requesting multiple offers from different types of cash buyers might result in leaving free money on the table. As investors ourselves at BustOffer, we went through the arduous process of vetting and integrating with more than 100 cash buyers so you don’t have to. As we expand our cash buyer network every single week, sellers can rest assured that their houses are getting the largest possible exposure to potential buyers, resulting in a higher offer price.
3. Selling might not be the only option.
Another option worth considering is to rent out your house. Depending on location, you might be able to rent it out either to long-term tenants or as short-term vacation rentals via services like Airbnb, VRBO. Have a separate entry for a mother-in-law unit? Hosting services like Loftium might be worth considering to increase your monthly income even higher. Want an even better deal? Try negotiate a rent-to-own agreement with your tenant, which could find you a trouble-free tenant for years to come.
To Sum Up
Real estate is inherently illiquid and the process of selling a house usually comes with a large amount of uncertainties depending on location and market condition. As a result, more and more sellers opt to lower their target price slightly in exchange for convenience and reduced-uncertainty. When it comes to fetching the highest all-cash offer, it’s very important to expose your property to as many cash buyers as possible. For that, BustOffer provides the industry-leading solution to simplify your selling process, to get started, submit a no-obligation offer request today.