However, there are cash buyers who would simply get your property under contract and shop around for deals where they can sell the property at a higher price. These types of cash buyers really intend to close quickly so they can sell the property the soonest they can and get their return of investment in no time. You are lucky if the investor has the money to close the sale. Now, let's say you feel like you were offered a good deal, so you accepted it. And I will leave it up to you to compute how much you'll be able to walk away with. What if you have a tax lien on the property? That will be another deduction. Probably, you'll walk away with 5000 or less in your pocket. What if, your house is still on a mortgage? The balance will be deducted from the offer. More or less, you'll be left with around 40,000. Less the profit margin that they would like to make, say 15-20% of the assessed value, and other expenses relative to the sale of the house. And it will take around 20,000 to bring it to its full potential to get sold in the market. Let's say, your property's assessed value is 75,000. And they will deduct the home improvement costs from the offer. Remember they promised that you do not need to spend anything on the house? That you don't need to fix it or do some upgrades? It is because they will do it themselves. Less the amount they would spend on repairs and renovation. The offer is usually based on your home's assessed value and not its market value. Most of them will give you an offer of 70-90% of your property's assessed value. Which means, these buyers are purchasing homes less than what it's actually worth. And as we all know, equity is the value of the property less any debts owed on the property. The listing price may not be as high as what you could get in a conventional loan market, but at least it would be higher than a cash offer value.Ĭurious how much these cash investors offer? At the start of this conversation, I mentioned that cash buyers were previously referred to as equity purchase companies. There are real estate agents who cater to quick sales if you are really in a rush to sell your property. Sounds like a really great deal, isn't it? But come to think of it, if it is your first time selling a home or if you do not have the time to research current home prices, how would you know if the offer is fair and acceptable? In cases like this, it is highly recommended that you get a professional representation or someone who knows the market well and can get you a great deal. These investors promise a no hassle, no commission type of transaction. They commonly target property owners that are in a rush to sell a property such as individuals in bankruptcy, spouses undergoing a divorce, a home in probate, homes in foreclosure, vacant houses, trashed properties, seniors, sellers with expired listings and homeowners who do not have enough cash to stage their homes. Some of them may have not experienced buying a home yet, but there are large companies that have gotten into the game like Zillow. Most of them were encouraged by the proliferation of TV shows about flipping houses and real estate wholesaling. Before the boom of social media, these cash buyers or investors are generally referred to as equity purchasers or EPs. Should you immediately grab the offer? Before you do, let me tell you more about cash buyers. So, you received an offer to buy your property for cash. Make sure to watch until the end of the video to take advantage of my 7tips to a fast sale. If you are a home seller, complete my online home seller's questionnaire. If you have plans of buying a home, complete my online homebuyers' questionnaire. Neighborhood tours and tips that are useful to first-time homebuyers, experienced homebuyers, home sellers, landlords, and renters who would like to relocate here in the Greater Houston area. I am Jennifer Yoingco of Texas Home Group. Who would NOT want a NO commission, NO obligations, NO staging FAST CASH offer?īut before you make that decision, let us talk about the pros and cons of selling to a cash buyer. If you are in desperate need of cash or if you want to sell fast, their offers are quite tempting. You can even see their large billboards along busy highways. Have you noticed a sudden spike of cold calls offering to buy your house for cash? Have you received several postcards lately offering the same? And I am sure you've seen several bandit signs saying We buy houses. I Want to Sell My House As Is Fast Buy My House Fast Sell House Fast Houston
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