We have worked with many sellers over the past few years and can honestly say that for some folks, selling their house fast has been extremely important. Even though we work with homeowners in all sorts of situations, we always look for what the homeowner NEEDS to get out of the home sale. Sometimes it’s cash or time or a variety of other things. Our goal is to assemble a deal that works for everyone involved. Below are a few key questions based on what we have learned while working with sellers.
What does selling your house for cash mean?
This essentially means that the buyer/investor does not need to get approved for a conventional loan. A conventional loan can take several weeks for approval which usually will not work for a homeowner who needs to sell their house quickly. Also, there are several other conditions that come with a conventional loan. For example, the house must appraise for the loan amount (or better) and the house must be insurable. This isn’t always the case with homeowners looking to sell their house quickly. This is because the house is often in need of repairs and will not get the appraisal priced needed for a conventional loan. Such repairs may also prevent the buyer from getting insurance. The buyer of a cash sale will either have the needed amount sitting in an account or he/she may use a hard money or private money lender. Both hard and private money lenders lend using the property as collateral and consider the After Repair Value (ARV) of the property instead of the current state of the property. Obtain hard and private money loans is generally very quick. Funding can occur within a couple of days. Whether it is cash, hard money or private money, the result is the same: a fast closing!
Why Would a Homeowner Sell to an Investor?
- The seller may have a property in need of a lot of repairs and may not have the time or money to fix up the house in which case working with a real estate investor would be the best option since like many investors, we buy houses as is. Again, obtaining a conventional loan and insurance on such a property could be challenging. We buy houses in As-Is condition and so we don’t really care about the condition of the property since we will likely be fixing it up anyway.
- The seller may need to move quickly and must sell their house fast. Therefore, they do not have time to wait for a traditional sale. Selling with a real estate agent may take several months or more. With a real estate agent, the seller is at the mercy of finding the right buyer who is able to qualify for a mortgage. Many homeowners choose to sell their house fast for cash to an investor.
- The property owner may have inherited a house and does not want to be a landlord or pay for another mortgage, taxes or insurance on another property. Selling to a real estate investor would solve these problems instantly. We buy inherited houses and some we understand and can work with the seller and the title company to navigate the probate process.
- A property owner is behind on payments and is facing foreclosure. We encounter this very often and. Property owners get behind on mortgage payments or on their taxes and cannot get caught up. This is going to become a massive problem in the coming months once foreclosures start happening again. As investors, we can work with the seller and their mortgage company to either get their mortgage current or payoff of the mortgage when we take title to the property. Having said that, we buy houses that are facing foreclosure and have helped several sellers avoid foreclosure.
- Some property owners need cash quickly and have no choice but to sell. Since we buy San Antonio fast for cash, we can often get the cash the seller needs very quickly.
- There are a variety of other reasons why a homeowner would sell to an investor but these are the most common.
What are the Pros of Selling to an Investor? There are several…
- The transaction can take place very quickly. Closing can often occur in less than a week if necessary.
- The property owner doesn’t need to make any repairs since houses are bought in as-is condition.
- The seller doesn’t have to clean the house.
- The seller doesn’t have to deal with the inconvenience of showings with a realtor.
- The seller often doesn’t have to pay closing costs or commissions. Our services are free!
- The seller doesn’t have to deal with the emotional roller coaster that accompanies a traditional sale. It is heartbreaking to receive a good offer for the property only to find out that the buyer either cannot obtain financing or decided to terminate the contract for some other reason. Then it’s back to square one. This doesn’t ever look good on the Multiple Listing Service (MLS).
What are some tips for those who need to sell their house fast?
- I would definitely recommend that the seller does his/her homework when choosing a cash buyer to work with. Ensure that the company is reputable, professional and trustworthy.
- Be wary of high offers. Some investors make insanely high offers in order to get the property under contract then either come back to renegotiate (iBuyers tend to do this) or they intend to wholesale the property and cannot find an end buyer at this price. This will cause them to either renegotiate a lower price or terminate the contract.
- Get multiple offers. This will give you a few different prices to consider but also different companies and personalities to consider. Go with the offer that feels best in your gut. This is big decision to make and sometimes the best offer may not be the highest price.
- Ask questions! Do no worry about being a pain. It is important that you understand and are comfortable with every step from contract to close. A reputable investor will take the time to explain everything to you.