Selling your home to cash buyers properly requires knowing what not to do. Here are common mistakes with selling homes for cash and how to avoid them.
Selling Homes for Cash: Common Mistakes and How to Avoid Them
Every year, around 5.64 million homes are sold in America. So if you are planning to move, you shouldn't struggle to find a buyer!
This can take a while though, and you may have to carry out extensive work on your home to get a fair price for it. Fortunately, this is where selling homes for cash can help. Finding a cash buyer is a great way to sell your home quickly and get a great price for it.
Nevertheless, there are certain things you should avoid doing when selling your home for cash if you want to get value for it. Want to know more? Then you're in the right place!
Read on to find out common mistakes people make when selling homes for cash and how to avoid them.
Setting an Unrealistic Asking Price
The median home price in America is currently more than $428,000, but a lot can affect the value of your home. The asking price that you set will also affect how quickly you sell your home.
Some realtors may recommend setting a high asking price to help you negotiate with potential buyers further down the line.
However, overvaluing your home will always work against you when it comes to cash buyers. Most cash buyers view your property as an investment so they will not want to pay above its market value.
When setting a home price, you should consider:
- The condition of your property
- Its current market value
- How much you paid for it when you bought it
- Its location and amenities in the neighborhood
Setting a fair price will help you find a buyer much quicker.
Selling at the Wrong Time of Year
Did you know that the best time to buy a home in the US is during the late fall and winter? This is because the majority of people aren't interested in moving at this time. So it quickly becomes a buyer's market and property prices drop.
This is bad news for anyone selling their home. Putting your home on the market during the winter can significantly impact how much money you get for it.
In contrast, summer months in the United States are the most popular time for relocating.
Because of this, you should aim to sell your home during late spring and summer. You will get more interest in your home during this time and this gives you more negotiating power.
Spending a Lot on Home Repairs
Before selling a home, a lot of people invest time and money in getting the property up to scratch. This can help to improve its value, so you get a better asking price for it.
However, the majority of cash buyers aren't bothered about the condition of your property. Developers, for example, will already be planning to renovate your property and sell it for a profit.
So don't waste your time and money on home repairs when selling your home for cash. This will make the moving process much simpler for you.
Being Unprepared to Move Out
When it comes to selling your home for cash, there usually isn't a chain of sales to figure out.
This can be very liberating and gives you flexibility when it comes to finding your next home. It also means that cash sales will go through very quickly.
However, this also means that you should be prepared to move out once the sale has completed. If you don't have things organized, your buyer could lose interest and walk away from the deal. So make sure you have a move-out plan in place so you're ready to go!
Hiring a Realtor
A lot of people hire realtors when selling their homes. After all, realtors have specialist expertise in marketing homes for sale and negotiating great deals on them.
However, they also charge administrative fees and take a commission on their sales. If you are planning to sell your home for cash you can cut out the middle man and reach out to developers directly. This will save you a lot of money in the long run.
Getting Emotional About Negotiations
Selling your home can be an emotional time. However, it is important not to let this influence you when you are negotiating home prices.
While you can appreciate all of the wonderful aspects of your home, a developer won't see it in the same way. Instead, they will look at the practical potential of your property and its location.
Because of this, it is important to take a similar approach when you are negotiating a price for your property. Do your research and base your figures on local market trends and the value of new developments in your area.
A cash buyer is much more likely to respond to the financial potential in your home than the emotional value that you have attached to it.
Getting emotional about selling your home may also mean that you overlook your home's financial value. So make sure you arm yourself with facts and figures before going into a negotiation.
Get Help Selling Homes for Cash Today
Selling homes for cash is very different from selling them using a realtor. Because of this, it is important to approach the home selling process differently.
Be prepared to negotiate and accept that cash buyers are more interested in your home's potential than its current state. This will save you a lot of money when finding and accepting all-cash home offers.
Are you looking for a cash home buying service near you? Then get in touch with Legacy Investment Group today. We're happy to help.