Many homeowners dream of selling their house for cash, because home buyers with mortgages add additional risk to the home buying process. If the mortgage does not fund at the end of the transaction, the home buyer must back out of the contract without purchasing the home. This doesn't happen when selling a home to someone paying cash.
However, there can be dangers when selling a home to someone who pays in cash. Understanding the risks can help you decide whether you want to accept an offer from a cash buyer.
Know the Risks
Typically, cash buyers are investors, not homeowners. Investors buy homes to make a profit, often by purchasing fix-and-flip properties. In order to make money, the buyer must purchase the home for far less than they plan to sell it for after it's been remodeled.
This means that offers from cash buyers are often extra low. For a homeowner who is feeling impatient, this offer may be tempting, but it can also lead to a significant loss in profit. Some cash offers may even be scams. Shady deals can leave homeowners with significant profit losses.
Evaluate the Offer
Sellers who get a cash offer from a buyer should evaluate the contract closely. In addition to the price, the offer may have some contingencies that the seller should understand. Sellers who are not familiar with home purchase contracts and how they work should pair up with a real estate professional to ensure that the offer from the buyer is legitimate, fair, and profitable.
Stay Away from Buyers who Charge an Application Fee
There are many websites advertising for businesses that buy homes for cash. Often, these businesses require the homeowner to fill out an application. Home sellers should be wary of any home buyers that charge an application fee. This could be a scam or fraud. Before ever paying an application fee to a buyer, the seller should check with local real estate agents to find out if the buyer is legitimate.
Consult with an Experienced Real Estate Professional
Homeowners who sell their house for cash in a hurry often do so because they're feeling desperate. Typically, these homeowners do not start off working with a real estate professional, because they don't want to pay the agent's fees. They want to sell quickly, and for as much money as possible. Selling with a real estate professional could take more time.
Working with a real estate professional is important. With help from an expert, the homeowner can make better decisions.
Think Twice Before Selling Fast and Low
If you're a West Calgary homeowner thinking about selling your home for less than market value, think again. Selling a home to a more traditional buyer isn't that much slower, and it can yield a lot more money.
Working with a real estate professional can help. Real estate professionals, though they do charge a fee, can find a buyer willing to pay much more than some cash buyers. Contact a reputable real estate professional in your area to find out more about how you can turn selling your home into a profitable and rewarding venture.