More home buyers have embraced cash purchases, giving them an edge over mortgage buyers. An analysis of real estate records shows that 30 percent of home purchases up to July 2021 were all-cash, an increase from last year’s 25.3 percent.
Besides, finding cash home buyers is essential for house flippers and real estate investors who would like to move investment property faster and expand their businesses.
But, how do you find the right buyer? Here are a few strategies real estate brokers, homeowners, and investors can utilize to find cash buyers when selling a home.
Sell to a Cash Home Buyer Company
Companies that buy houses for cash can reduce the hassle of vetting several buyers to find the right one. These companies make instant offers helping you sell your house fast when working with a timeline.
When selling your house to a company, you may sell to We Buy Houses companies or iBuyers.
Most we buy houses companies specialize in house flipping. Thus, they are open to purchasing houses that need significant repairs.
On the other hand, iBuyers prefer homes that do not need a lot of fixing. When you approach an iBuyer for a home sale, they use automated valuation models to value your home and make a purchase offer.
When you sell your home to a company, you don’t have to worry about the sale falling through or the company rescinding its offer. Additionally, because these companies buy with cash, they will not use your timeline as leverage to make a lower offer.
Below are tips for choosing the best cash purchase company to sell your home to:
Research Home Buying Companies
Look for a trusted home buying company with a website and brick-and-mortar office. Do a background check to establish the company’s reputation. If you can, visit their offices and inquire about how they work.
Check for Accreditation
You can trust an accredited home buying company because experts have evaluated their practices. That means they apply industry best practices in their operations. Accredited companies have a good track record and won’t take advantage of you.
Check Online Reviews
Most reputable home buying companies have customer review sections on their websites. Check the reviews and see how former sellers describe their experience with the company. You may also check the company’s ratings on the Better Business Bureau and Yelp.
Inquire About Their Purchase Terms
Does the company require you to do repairs on your property, or will they buy it as is? It is a bonus if a company buys your property as it is. This is because, without having to do repairs to your home, you are sure to sell it within your projected timeline.
Avoid Faceless and Hard-to-Contact Companies
You can tell whether a home buying company is legitimate based on how easy it is to access it. Consider the following factors:
• Does the company have a phone number on its website?
• How promptly do they respond to inquiries?
• Have they listed an address on their website?
• Does the “About Us” page include pictures or names of the owners or company employees?
An experienced home buyer knows the legal implications of home purchases. Thus when you approach the company, they take care of all the paperwork and formalities, ensuring they do not delay the sale.
When interviewing home buying companies, ask how long they have been in business and how many properties they have bought. This information helps you to gauge their experience.
Some home buying companies may try to buy your home at a price that is way below the fair market value. Do not sell your house to a company if you feel their offer does not reflect your home’s value.
Before selling your house, have it appraised to determine its market value. That way, it becomes easy to know when a buyer offers a less than fair deal.
Selling to Individual Buyers
Perhaps you prefer to deal with individual buyers rather than companies. In most cases, you stand a chance of making more money off your sale if you sell directly to an individual.
Remember, house-buying companies want to turn the property around quickly. Because you are paying for the speedy sale, you may not get a very high price. However, individual cash home buyers will be willing to pay your offer price.
Below are tips for finding individual cash home buyers:
Search for Cash Home Buyers at Real Estate Auctions
When you want to sell your home, you go to places where you are likely to find your ideal buyer. There is no better place to find several cash buyers than at a real estate auction. During property auctions, the bidders that win are those willing to pay up immediately.
Most people who attend property auctions come prepared to make purchases on the spot. That means they have the cash required to buy a property. Check your local newspapers and websites for advertised property auctions and attend as many as possible.
Property auctions give you the platform to meet and network with cash home buyers. When attending these events, carry contact cards and prepare a pitch to convince your ideal buyer if you meet them.
Talk to Real Estate Agents
Real estate agents talk to many people searching for homes to buy. Thus, they know who is willing to buy a home for cash. Talk to local real estate agents and ask them to connect you to home buyers.
Once you connect with the buyers, engage with them on the sale and see if you can agree on a deal. You may have to pay a real estate a higher commission to get access to cash home buyers.
Put up a House for Sale Sign
A simple way to get cash buyers is to put up a for-sale sign specifying “cash buyers only.” Put the sign somewhere where anyone driving by your home can see it. That way, anyone who wants to buy your home can reach out.
However, putting up a sign may not be ideal for selling your home fast because you have to hope that someone who sees the sign has the cash to buy it.
Check Public Records
Browsing public records for people who have recently completed cash sales is a more direct way to find cash home buyers. You may have to visit your local clerk’s office to check public property records.
When buyers purchase a property through financing, the county records the deed and lien from the loan. Therefore, check for recent property title changes without a mortgage lien to identify cash purchases.
Reach out to cash buyers you identify on public records, and ask them if they’d like to buy your home for cash.
Today, you can browse nationwide public records on the internet. Some services browse public records and sell you lists of cash home buyers. The downside to browsing public records for cash home buyers is that it may take a while to find the right one.
List Your House on Craigslist
To increase your chances of finding home buyers on Craigslist, review other property listings to see how other sellers have advertised their properties. There are two ways to find buyers on Craigslist.
First, list your property in the real estate for sale category and wait for buyers to reach out. Keep renewing your post regularly until it expires to get a lot of attention on it. If you do not find a buyer by the time your post expires, post again until you find one.
The second way to find home buyers on Craigslist is to visit the housing category and ask the landlords if they are looking to buy a home for cash. Alternatively, reach out to the people in the selling listings and offer them your home for cash.
Most people in the selling listings and apt/housing category are investors and may be looking for cash purchase deals.
Search on Google
Many real estate investors who buy houses for cash have websites with SEO leads on keywords related to cash deals. You can find these websites easily by typing in terms like “sell my house” or “sell my home fast,” with your location included.
You will probably find several wholesalers on Google. But, some of these wholesalers are buy-and-hold investors and house-flippers. Thus, they may be interested in buying your home.
Once you find potential buyers, contact them and make their acquaintance. Then, ask them if they would be interested in a cash sale deal.
List Your House on an MLS
Listing your house on a Multiple Listing Service (MLS) gives you access to thousands of home buyers. People who search the MLS are serious about buying a home. Thus, there is a high chance of finding cash home buyers there.
When your house is on the MLS, it is more visible to local real estate agents and gives you credibility. Real estate agents know you want to sell your home fast, so they direct cash buyers to you.
Since the MLS is a public listing, many people have access and can make an offer.
Be keen when evaluating cash offers to find the right buyer. Remember to indicate your offer is for cash buyers only in the property description. That way, you can ensure that most people who reach out to you want to buy for cash.
Factors to Consider When Choosing a Cash Home Buyer
Whether you want to sell your house to a company or an individual buyer, there are a few things to consider if you want a smooth deal. Below are essential factors that lead you to the right buyer:
Willingness to Provide Proof of Funds
It is essential to ascertain that a prospective home buyer has the cash needed to close the deal. Seeing proof of funds assures you of the buyer’s ability to act on their promise to buy your home. That way, you do not take your property off the market without the certainty that a buyer can afford it.
Documents that qualify as proof of funds include:
- Proof of funds letter with a bank’s letterhead, indicating the account holder’s name and bank balance signed by a bank official
- A recent bank statement
- A security or custody statement provided by the buyer’s bank or other financial institution
Be wary of buyers who are reluctant to provide proof of funds.
Perhaps you are in a hurry to sell your home due to an impending foreclosure, relocation, or divorce. In that case, you need a buyer who can work with a short timeline.
Home buying companies are the best option in this case because they are easy to find and are always ready to buy properties for cash. Additionally, these companies buy homes as-is, so you will not waste time and money on repairs.
Remember, you are in charge when it comes to home sale decisions. Thus, do not feel pressurized to sell to a buyer. Avoid buyers who pressure you to make a decision quickly. A trustworthy person lets you take the time to evaluate your options.
Trust your gut when deciding who to sell your home to. It also helps to work with a buyer with a website or physical address as you can follow up on them in case anything goes wrong.
Get Your Home Off the Market Fast
Now that you know what to look for in cash home buyers, you will feel more confident putting your house up for sale. Selling your home for cash saves you the hassle of following up on sales for long periods.
If you want to sell your home in Pueblo for cash, I Buy Pueblo Houses is your best bet for a quick home sale. We are Pueblo residents and believe in contributing gainfully to the community. So, you can trust us to have your best interests at heart.
Contact us today to learn more about our services.