Getting a cash offer on your home is easy you can call Mark Spain, Zillow, Offerpad, We Buy Ugly Houses, etc. But the question is will this be the offer you want or need?
Ok, so let's start from the beginning, With a cash offer you will get a quick sale.
Although, some companies never give you an offer. They just trick you into doing a regular sale. Which, a regular sale is fine but be honest, right?
Others will really offer cash but the cash offer will be well below market value.
So let's dig a litter deeper, below I am going to give you the pros and cons of working with a real estate agent versus getting a cash offer from an "investor". This is something to consider before you get a cash offer on your house.
The pros of a cash offer
- Homes quickly sells
- No showings
- No real estate agents
- No agent fees
- No closing costs
- Cash buyer
- No open house
- No mortgage lender is needed in a typical closing
The cons of a cash offer
- They give an initial cash offer that is market value but after all of their fees and estimated repairs, the offer is about 10-20% below market value. Who wouldn't buy your house for that price?
- You don't have to use a realtor but you may as well because their fees are higher than a realtor. The fees are around 7.5-10.5% average fees for both realtors are 6%.
- You may not be able to pay off your debt with their offer.
- You won't walk away with any cash in your pocket
- You have no leverage
- They leave no room for negotiations. It's a Take it or leaves it kind of deal.
- All they are going to do with your home is rent it out and make money from property management. Maybe let it sit on the market to attract home buyers and sell the leads to realtors. Or they may sell your house and get full price for it, they pocket your money.
The pros of using a realtor
- You get a personal touch
- You can count on amazing marketing. The house will be listed on over 600 sites.
- Someone who cares about your circumstance. A realtor is a person and they won't just treat you like another number.
- You have leverage
- You can negotiate so that you get the best deal possible
- You will get market value for your home
- You will close in 30 days if your home is priced right
- You will pay lower fees
The cons of using an agent
- You will have showings and the home will need to be show ready
- There will possibly be open houses
- It will not be considered a quick sale (meaning not a 2 week close) but you will definitely be under contract in 2 weeks if you price the home right.
- You will pay fees, the average is 6%
- You will have to deal with home buyers ( not directly but during negotiations through the realtor)
- You may have to pay closing costs
It makes the most sense to get the maximum amount of money out of your home. Unless you are in a bad predicament. Maybe you're behind on your mortgage payments or close to being behind, then I would suggest taking the cash offer. You don't want to ruin your credit by being greedy.
Although you should really list your home for sale with a real estate agent, it's totally understandable if you need to ditch the home fast. Save your sanity, peace of mind, and credit, by all means, take the cash offer.
So remember, the short amount of time that your home is on the market is nothing compared to losing all of the equity you paid into your home with your hard-earned dollars. If your home is in a good location, in good condition, and priced right then there is no reason for you to not get a quick sale. You never know you may even get a cash offer.
At the end of the day, it's up to you. You need to look closely at the pros and cons list and see if it would be better for you to take a cash offer that's below market value or get full market value for your home. The choice is yours.
But the most important part is you should get your money out of your house if you are in the right situation to do so. Now, before you go looking to get a cash offer for your home, ask Ritzberg Realty what we can do to sell your home for More Money in Less Time.
