Sell My House Now, Fast for Cash?
Sell My House Now!
With home prices peaking and beginning to flatten, and with the economy showing some weakness, quite a few homeowners are wondering if right now is the best time to sell their house or condo.
Selling your house fast for cash has always held connotations, but recently, the business model of companies that buy houses for cash has changed. They’ve improved their offer and it may include no commissions, no fees, no appraisals, no repairs, and they can close fast. You have to wonder if this trend will spread like wildfire.
Contrast selling your home this way with the process of hiring a Realtor and taking months to close and pay big commissions, and you can see why there is a rising tide to selling good and bad houses this way. Of course, selling strategically with a Realtor who knows his marketing and sales, could generate a much higher price, maybe even market value.
Tarek el Moussa of Flip or Flop TV fame is one of these instant buyers. His company in Los Angeles, California called Tarek Buys Houses is just one of many companies that will buy your house now for cash. A guaranteed offer, no commission and he may pay for some of your moving expenses means Los Angeles area sellers might get a sweet deal close to market value.
With housing shortages so severe, Millennial buyers so persistent, and mortgage rates at record lows, the demand for homes is still intense. Selling direct to a fast cash buyer means you may be able to skip hiring a Realtor and sell the house for cash on your own. You can get much more of the potential price. Selling a house for cash fast bypasses all the traditional pains of listing, showing, negotiating, and closing.
There is a growing number of cash buyers out there desperate for homes. You can view the list of cash buying companies throughout the US and Canada below. There are many and you’ll still need to do your due diligence about them.
They need properties to sell (or flip) and going right after seller leads is a great choice for them because seller leads are very hard to get. Yes, Realtors, brokers, house flippers and corporate real estate investors will offer you a great price fast in cash! Let’s look more deeply at the process of selling to them and what you need to know below.
Faster, Less Work, and You’ll Probably Get Your Price
So within this arrangement of selling your house yourself to these professional buyers, you’re getting this stressful process of selling out of the way. A lot of sellers fear the process more than losing a few thousand dollars. But if you sell the home directly to these people, you may not be paying commissions and fees.
People may not realize it, but in this era of digital real estate marketing, selling fast yourself might be the next evolution of real estate sales. This process answers a lot of seller needs including:
- avoiding having days or weeks of window shopping buyers coming through your house
- save your time
- avoiding big Realtor commissions
- negotiating with regular home buyers
- it’s fast and can be done online (at least initiated, as selling right away online is possible but not wise)
Professional Cash Buyers are Willing to Pay High Prices
You’ll need to get your house appraised and contact several cash buyers to get the most competitive offer. The alternative to selling to them, is also explained below. Read on and see just how many options you really have. It comes down to how much energy and time you have.
Selling fast: A few homeowners want to, or need to sell now for reasons discussed below. Yes, selling fast could mean you’re leaving money on the table for buyers, possibly getting gouged, or suckered in on a bad deal. Despite that, fast selling is a process many sellers demand due to divorce, death, market timing, career moves, inheritance settlements, tax settlements, and more.
Plenty of Sell for Cash Options
There are sell it yourself FSBO options, sell to cash buyers in your city alternatives, sell via Internet-based buyers, and you might use a Realtor to list on the MLS. Obviously, selling on the MLS is not speedy, so you might cross that one off your list if you need cash soon. Hopefully, you’ve checked out whether you can borrow on your property, receive enough to meet your obligations, while you strategize selling your home (bidding war) for much more. A better price might offset any big interest charges from your bank or financing company.
Using marketing and strategy with a marketing oriented Realtor to get a much better price is kind of the opposite of the fast cash route. With demand so intense, it’s an environment perfect for ultra high prices, which is why you have seen garages and shacks sold for ridiculous prices, over asking price.
Given you’re getting such an amazing price, perhaps you’re not concerned about losing $20k to $200k on the sale.
Sell Your House Fast to iBuyers?
Right off the bat, there are what are known as instant home buyers. Companies such as Redfin, Offerpad, and Opendoor use computer algorithms to generate a fast cash offer, perhaps within one day. That’s quick!
Just like a good real estate agent they have the power of good real estate marketing and reach to buyers to help them sell it for a profit. They’re more creative and can do more than you can with the property.
If you used a Realtor your sales commission costs can vary from 4.5-7% of the final sale price, and you may have to pay closing cost (2% to 5% of the home’s sale price). With an iBuyer however, your cost could range from 6% to 14% of the final sale price. iBuyer selling fees, convenience fees, and repair fees may range from 5% to 13%. And there will be closing costs of 1% to 2% of final selling price. That’s the cost of convenience and speed.
It isn’t a cheap alternative, but more homeowners are choosing this route to sell their property quick.
Redfin is buying houses in Boston, Austin, Dallas, Denver, San Antonio, Las Vegas, Los Angeles, San Diego and Houston. Very hot markets.
iBuyer companies are seeing their usual market of customers return as the economy recovers.
“Business really started ramping up in January and February. Since then, we’ve just had a constant barrage of deals. We’re back to full speed and are buying more homes than we were last year.” said Allister Booth, an acquisitions specialist at RedfinNow. — from Redfin report
iBuyer fast cash buyer market returning. Screenshot courtesy of Redfin.
Compare iBuyer to Realtor:
Old Republic Title compared the selling cost of Realtor vs iBuyer and it found a trade off between final selling price and time to sell.
There are other Internet-based selling services such as Offerpad which might be an effective option, yet you do run the risk of complications. Getting a cash offer quick is the result you may want.
The Regular Channels Aren’t Expedient
Real estate agents often speak of fast sales simply to hide the actual complicated delay of closing on a home sale. They’re not really fast. Sales have to be closed carefully with the buyer who may need many weeks to wrap their mortgage financing up, even if they’re prequalified. A Realtor’s real value they deliver is to take the selling work away from the homeowner, control legal liability, and possibly, if they possess excellence in real estate marketing, to capture a higher selling price.
Why Sellers Need to Sell Quickly
There’s not much holding you back from selling fast. You want to unload it now because:
- you’re getting divorced
- you don’t want a lengthy sales process and open houses
- you’re avoiding potential legal issues
- the home is irreparably damaged and just needs to be sold as is, with no legal recourse for buyers
- you can’t afford the mortgage or costs anymore
- need to settle your own debts fast,
- don’t want to haggle with a bunch of mortgage squeezed buyers who can’t really afford it
- it’s a fixer upper or as is
- you’re a landlord whose tenants won’t pay rent or leave
- or it’s the kind of situation where maybe you inherited an old property and you’d rather get it done quickly.
Sometimes landlords who have tenants behind on rent are pressed for income, can’t afford repairs, and have little faith their tenants will pay their back rent or future rent. And the tenants are squatting on the property with legal Covid pandemic protection. Obviously they must sell and sometimes as fast as possible.
Or, Sell Strategically for Tens of Thousands More?
It’s hard to argue against selling you home now. Listings are rising so you see the trend. But that doesn’t eradicate the value of taking time to sell your home, as this tactic makes determine buyers more determine to get your property and it draws many more potential buyers (via good marketing strategy).
Whether you aim to sell now or sell in 2022, it’s important to read the tips below.
How to Sell Your House Fast
In this post, we’re exploring the opportunity to sell your house fast, which is likely why you’re reading. Also we can explore the other angle of finding ways to delay so that you can engineer creating a much higher prices for your property. In your circumstance with your property, you may believe that no amount of marketing will raise the price. It is what it is, and needs to be sold immediately.
If you’re going to sell FSBO or use a Realtor, you’ll want to read the strategy below on how to increase the selling price, to get more than asking and even start a bidding ware. It’s good info even for someone who intends to sell their house fast.
Set the Right Price
Whether selling fast, or slow, you have to set a price and be able to justify it to a prospective buyer. You need to deal with the legal sales transaction and not get burned on it. There are “cash for houses” buyers who could take the house off your hands soon. They may be the fastest route to a sale. But how do you know they’re honest? By the way it is illegal to sell your house for actual, physical cash so the term is actually misleading.
With them, you’re paying for convenience and speed, so you won’t get the best selling price. Some may pay all the closing costs and you won’t have to pay a Realtor’s commission. It could work okay. You’re selling the house as is and perhaps with an inspection. If you’re happy with the amount the cash for house buyer’s offer, then you just need to prove you own the title and find a real estate lawyer to get the deal inked.
Sometimes getting rid of it is the right solution. There are buyers who will take it off your hands for cash, but they’re wanting it at a bargain to flip it quick to another buyer. And you really don’t know if they’re honest and on the up and up. Advertising on street posts and lawn signs on street intersections isn’t the mark of a professional. Maybe they smell blood?
But selling it fast opens up opportunities for losses and attracts undesirable elements. Sell house fast of them may be a code word to take advantage of you. They could see as a big sucker. And if you do take your time, hire a Realtor and or use a strong real estate marketing strategy, you could access the bidding war frenzy that sees some get millions above asking price for a shack. Today sales to asking price ratios are up to 110% again.
The point here is that you may not really know what your property is worth, or what it could be worth if the right crowd knew it was up for sale. In one city, people sold a garage in a downtown area for a million dollars. Please ensure you take enough time to discover what it might actually be worth. Treat it as though it as piece of rare, fine art and get it properly appraised.
Of course, just for conversation sake, selling after marketing it well might be wiser. It could take a little longer given someone will need to get it ready to show and to launch the marketing effort. Below, you’ll find a discussion and tips on how to sell your house for more and even create a bidding war. Yes, taking control of your own selling price!
How do You Sell Your House Fast?
To sell your home faster, you have to recognize the documentation and selling process. You can avoid the real estate brokers with their lengthy system and costs, but legally, you have to do it correctly. If you don’t know this stuff, you can go with an FSBO seller agent and a real estate lawyer so you’re covered by their insurance on the sale.
If scammers and criminals know you’re desperate to sell fast, they may move in on you. There are people who have had the house sold out from under them with no legal recourse, so a note of caution is appropriate here.
9 Steps to Selling a House Fast
- clean it up and show it yourself
- list its selling features and be ready to explain its value and promote it so you get a better bid
- get it appraised and keep your asking price realistic (you’re going to have much fewer buyer prospects to sell to)
- contact an FSBO realtor and get their low commission help and access to the MLS listings
- do your own advertising online and try to encourage them to show up in the next weekend to bid against each other
- hire a real estate lawyer to handle the transaction and legal aspects
- rank the buyers carefully, ask about their ability to pay now, and choose one that has the money to pay (even pre-qualified buyers can be turned down by their bank)
- agree to a deal , set the closing date and close through a state-regulated title company who can insure the transaction
- hire a Realtor and ask them what is the fastest they can sell it or how many buyers in the market they can reach
Reasons to Speak with a Realtor?
You could hire a Realtor to take the whole thing off of your hands. That’s not a bad plan. Just it leave it with them, and they’ll only call you when they have the final bids. If they’re a successful Realtor, you’ll be fine. If they’re not decent then they’ll sell it cheap and you have to pay their commission and other fees. You could lose tens of thousands of dollars and may even be legally liable for the home’s condition after the sale.
Of course, if you’re rental property owner, it is wise to keep your asset. Rent prices will rise and the tax benefits of owning are immense, and you won’t have to pay big capital gains taxes!
When the selloff of homes begins in 2023, the cascade will be steeper than most homeowners believe it will. Don’t get caught off guard this summer. You’d be smart to calm down and find a good Realtor. They’re worth their 2.5% commission on the sale. If they are demonstrably strong in real estate marketing and have excellent reach beyond just the mls listings, then they can reach the great market and draw in more house hungry buyers.
A bidding war will happen whether you want it to or not. By selling your house fast, you might be just cutting out 90% of all those buyers. But a word of warning however, is don’t let your property get stuck as a pocket listing. Maximize reach, not just via the MLS where you’ll get hoards of poorly qualified buyers tramping through the house.
Some Realtors may not be strong in marketing so they could take a long time to get your price. Be wise in your selection.
2021, America is Ready to Move
A lot of homeowners/families are ready to sell and move now that the kids are out of school. All the hot market needs is a negative shock/event to send it plummeting the other way. More workers are quitting their jobs lately which tells you the mood has changed. People are on the move to a better life.
See these top 10 tips below to get the best price for your home. If you’re a buyer, there are also tips for winning a bidding war. And there will be a lot of bidding wars this summer.
Right now, selling is a good idea. First and foremost, this is when the most buyers are out house hunting, and this could mean a bidding war. Second, there are fewer homes for sale on the market even though more new listings are appearing. The reopening with buyers going back to work means more sincerity and opportunity to buy. Summer is the best time to sell your home.
Selling in 2022/2023
Send this post to anyone who is considering selling
Will home prices drop? They aren’t yet, but as construction picks up and resale house listings grow, then there will be downward pressure on home prices. You’ve got millennials desperate not wanting to miss out on a home to raise their kids. Apartments don’t cut it so they will be wanting your quick sale. But how will they know you’re selling fast?
Case Shiller Corelogic predicted a strong decrease in home price appreciation and as Fed stimulus tapers off and interest rates rise a little, the sell off might begin. The 2022 housing market will be affected by these trends. Low mortgage rates allow sellers to buy a new property without big costs. 2022 might bring higher taxes to home sellers thus they’ll receive less on the sale. And then, if your house isn’t of the best quality/value, then it’s even more vital to let it go. Yes Sell now.
Unfortunately, for buyers, this may be the worst time to buy, given the high home prices. Yet they can’t wait another year or two. They’re at their wits end and rent prices are climbing fast, and many of them can’t even find a rental.
If you consider what happens at auctions and weekend open houses, such as bids 10% to 50% over asking price, you know that professional marketing of your home can ensure you’re getting the maximum market value – what buyers are willing to pay. So again, consider hanging on for a bit and accessing that extra value. What if it’s $100,000?
This is an unusual market an historic bull market that’s brought home prices to record heights. If you’re buying and selling homes, the need to smart marketing and smart sales strategies is paramount.
Many Buyers Can Afford the Price
Buyers number one reason for not buying a home? They keep getting outbid. Yet that describes most of the market, not all buyers. The fact is, given the pandemic bailout, some buyers have a lot of money saved, and they’re seeing this as an opportunity to acquire homes that would never be put on the market. It’s only the high price that’s encouraging the listing of some real rare gems.
Many of the homes coming up for sale have not been on the market. Sellers have a good opportunity to get the price they want. If not for the high price, these homes would never be put up for sale. It’s introduced a lot of sellers to new real estate agents who have immense difficulties reaching homeowners who might sell.
Is It the Absolute Best Time To Sell Your House?
The answer is yes. Home prices could fall much further than they could rise, so you’re into a zone (summer and fall) where you can get a record breaking price. Waiting too long is gambling. Get your price now and do it by ensuring you’ve used a professional real estate marketing team.
More Reasons You Should Sell Your House Right Now
- housing prices are reaching their peak because of a surge of end of pandemic buying frenzy and there is less inventory
- what are the comparables in your neighborhood selling for and are they trending down?
- buyers are heading back to work and are entering bidding wars and you’ll receive an incredible price
- you could sell then rent somewhere else including Mexico, Costa Rica and Spain
- vaccinations are speeding ahead and you can finally move somewhere you like
- demand is intense and you’ll have no trouble finding buyers, so you can negotiate with your Realtor
- buy your next house at a low fixed mortgage rate
- start enjoying life again instead of just dreaming about it
- use the extra funds to buy property in the Ex-urbs or cities with the lowest home prices
- use the extra funds to start a new business — good time for startups in 2021
- you’re ready for a nice vacation before you get back to your regular life (post pandemic life)
See these tips on ways to sell your house for more, ways to improve the selling price, timing of selling home, and whether to sell fast or slow.
Sales are brisk and you’ll be receiving at least 15% over what homes sold for last year. It may be more if you’re in certain districts, states and neighborhoods that are on the hottest cities list.
The steepness of the price curve shown here is your biggest signal. The housing market will take a downturn as fewer people can afford them. With few buyers, the flash crash begins.
Timing is Everything in Selling
This spring and summer, home prices will peak at astonishing levels. You’ll be selling at the ideal time when the most buyers are coming onto the market. Many have good amounts of savings and will pay cash. There is almost certainly going to be a bidding war. If your real estate agent is competent, then the bidding war will be intense. The extra amount their selling strategy generates will pay for their commission. You’ll take away a better price.
And you’ll need that money to buy again. If your strategy is to sell, rent, wait, then great. A few years of vacation would be nice, or just simplifying your life with in a condo or apartment nearby is good too. But if you’ve decided to move far away and work remotely, congratulations. You’re going for a great life and it’s definitely the right time to make that change.
Intense Bidding Wars
Buyers really want your home. Many will be young and trying to get their new families launched, while others are trading up or down to a house that fits their needs.
If you’re a buyer, you need to understand the seller’s motivation and mindset. They want the great price for a home that rarely comes up for sale. The rarity of the event means more buyers are going to jump into the bidding war.
Redfin reports a 9th consecutive month of a 50%-Plus Bidding-War rate. The recovery combined with stimulus money plus a little “fear of missing out” demand will ensure the bidding war curve steepens.
“The number of homes for sale is at an all-time low and the supply shortage only seems to be getting worse. With so few new listings hitting the market, I expect bidding wars to become more common and involve even more potential buyers as we head into the spring homebuying season.” said Redfin chief economist Daryl Fairweather.
And with such low mortgage rates, intense demand from buyers with financing, and a severe shortage of housing, bidding wars will be driving up home prices in most US housing markets and Canadian housing markets this spring and summer.
The Art/Science of Bidding Wars
No one has produced a definitive book on the art/science of bidding wars, although there’s lots of tips for buyers. If buyers should be able to game the process to avoid paying the true value of the property, then sellers should be able to ensure the full value of the property is on the table.
The buyers bidding war strategy is to either ensure they win the deal, or to undercut the real price.
For sure, bidding wars will happen this spring. And if a selling agent isn’t building a bidding war strategy, are they really creating awareness and representing the true value of the property? Is any other strategy only creating bargain prices for buyers, and lowering commissions?
Whether you believe in market supply and demand dynamics or not, homes for sale in 2021 will have a boatload of buyers. You’ll need to optimize this process and make the best of the situation. Buyers will want to know you can handle it.
Sellers from Florida to Texas to California will be seeing some lofty offers.
Do bidding wars instantly translate to much higher selling prices? Buyers might be more wary and cautious than they used to be but prices will be bid up. Realtors should be reveling in the opportunity to sell the house at what the buyer pool believes it’s worth.
How about Winning a Bidding War?
Buyer agents have the tough challenge of trying to win a bidding war. Here’s some tips from Cathy Naiser of Keller Williams Realty.
Comps don’t tell you what a house is worth. The buyers you reach dictate the selling price. And who doesn’t put up the sold over asking sign after the sale?
It’s definitely worth it to manage a bidding war intelligently and get that higher selling price. that your client wants.
Realtors are using the typical negotiating game, or building blitz type campaigns to build a buying frenzy, but they don’t have to do that this year.
Anyone selling a home in Toronto, Vancouver, San Diego, San Francisco, Dallas, Boston or Los Angeles, who doesn’t consider an above asking price strategy is basically giving away money.
As an investment, a seller’s goal is to get the best ROI as this money could get them out of debt, be their retirement fund, kids’ education fund, old age health fund, or bucket list fund. That extra money could help sellers revive their lives and get their health back. No more commuting!?
Pity sellers who sell their house in 3 days when a planned, strategic, 2 to 3 week bidding war strategy could build interest and focus buyer intention on one special 3 day period where buyers must make their best offer. You’re a salesperson and should have extensive expertise in sales strategy.
Realtor.com on Over Asking Prices
Realtor.com‘s advice is nothing new to you:
“The most fruitful strategy.. is to aggressively price the property roughly 5% to 10% below the going market rate. This will always generate more traffic to the property and give buyers a chance to fall in love with the home, when a higher purchase price might have kept them away initially.”
Here’s a few more Over-Asking Price Tips:
- hold back and tell buyers there are other offers, even though their offers aren’t huge
- approach investors to look hard at the property
- get the seller to update the house to eliminate negatives and play up the main selling value proposition (in Vancouver it might be the views, or just the location (tear downs or flips). You may even decide to change the style of the home (brick facades, or Asian, or Arabic styling could really pay off). See what the most attractive styles in Kelowna BC are right now.
- be proactive, and like you’re in charge: do the landscaping or roof repair yourself and deduct that from your commission which preempts any attempt by the seller to cut your commission.
- do blitz real estate marketing with Google Adwords, remarketing, select outdoor ads, and play up the property to all your Linkedin, Facebook, and Twitter connections. If your site is ranking well on Google and you’re getting big traffic as well, you can actually create the bidding war climate. Timing is everything so think about how you can market strategically.
Companies That Buy Houses for Cash
There you have plenty of reasons to sell your house now. Here’s a few more ways to sell your house for more.
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