What to Look for in a Cash Offer For Your Home
Aug 23, 2019 | Hometown Development
If you’ve decided that accepting a cash offer is the best way to sell your home, you’re likely already familiar with the benefits. You don’t have to make repairs, you don’t have to worry about inspections, and you should be able to move on from your home quickly. But, what about accepting that cash offer?
There are indeed shady investors out there. It’s tough to trust every cash offer you see, which is why we always encourage homeowners to do a little bit of homework before they accept an all-cash offer for their home. If you’re ready to accept a cash offer for your home as-is, here are a few things to look for from the person or company who will be purchasing your home:
No Upfront Fees
One big red flag to take note of is if the buyer asks for any fees or cash from you upfront. If they have an application fee or require money from you in any way before they purchase your home, you have a right to be wary. Most professional real estate investors don’t require an application fee, and in fact, cover the majority of extraneous fees involved with the home sale process. That brings us to our next point:
No Additional Closing Costs or Fees
Most reputable real estate investors don’t require you to pay anything. They’ll subtract any necessary transfer taxes and the cost of the title insurance from your offer, but otherwise, you shouldn’t have to pay anything.
If someone is offering you cash but requires a number of fees and closing costs upfront first, you may want to look for a different buyer. Reputable developers and investors will work to make the closing process as simple and as inexpensive as possible for you. If you feel you’re getting nickel and dimed on a bunch of fees that you’ve never heard of, you might want to do a little more research on your buyer.
The nature of an as-is cash offer is that the buyer is purchasing your home as-is. That means there should be no purchasing contingencies based on the condition of your home. Ask your buyer to explain their offer thoroughly.
How did they arrive at the number they’re offering you? And is there any reason their offer wouldn’t go through?
Reputable real estate investors will tell you that your offer is based on the market value of your home, and since they’re purchasing your home as-is, nothing regarding its condition should be grounds for terminating the sale.
Closing On Your Schedule
Another key benefit of accepting an as-is, cash offer for your home is that you should be able to close in a time frame that’s convenient for you. Reputable real estate investors can help you close in as little as five days, so long as there aren’t several outstanding liens on your home.
Quality cash buyers will work with you to make the closing process as easily as possible. If your buyer isn’t willing to work with your schedule and seems inflexible about your options in the closing process, you might want to reconsider their offer.
A Legitimate Business
The best way to protect yourself from a scam or a bad offer is to do as much research as you can on the buyer. If you can find a website and reviews about their company, both on their website and on sites like Google, then you know they’re a legitimate business with a reputable history. If all you have is a phone number for the buyer, do a little more digging. If you still can’t find anything on them, you might want to look for other offers from established companies you can trust to deliver on their offers.
Accepting a cash offer for your home is a great way to move on from a troublesome property with minimal hassle. It’s just important to remember to do your research before you accept a cash offer. There are many legitimate real estate investors out there who are sure to be interested in your property — you don’t have to settle for an offer that doesn’t seem quite right.
For a cash offer you can trust, call Hometown Development. We’re purchasing and remodeling homes in the West Michigan neighborhoods we love, and we’d be happy to make a fair cash offer for your home. To talk about a cash offer for your home, get in touch with us online or give us a call at 616-379-3090 today.