While cash sales for homes have been declining in recent years, there are still many reasons why most people would want to sell their houses in a hurry for cash. For example, people going through a divorce or someone looking to purchase another house would be tempted to pursue the cash route rather than relying on mortgages. Additionally, the property might be unique such that it won’t qualify for traditional financing.
How long it takes to get a cash buyer depends on a number of factors. The type of home, its size, age and the property conditions. Location and current market conditions are other factors that might influence the entire process. Nevertheless, selling a house for cash is straightforward.
Step 1: Check the value of your home
Cash offers for homes tend to be lower than finance. Therefore, it is important to know the value of your home before listing it in the market. While you will likely receive a discount on the price, knowing the value could help you see the level you should not sink depending on the offers.
There are free home value estimate services that rely on automated algorithms to value a house. The tools rely on data from various sources, including county assessors, recorders, real estate agents and user-generated questionnaires to provide instant property value estimates. Additionally, one can leverage the services of a real estate realtor’s services to find the home’s value on sale.
Step 2: Find a cash buyer
Once you know your home’s worth, you can search for cash buyers to address how to sell your house for cash fast in Michigan. Below are some of the options to consider.
Franchisors: These are real estate companies that buy houses for cash in the conditions they are. They include We Buy Ugly Houses or Express Home Buyers and pay between 50% and 70% of a home’s value after considering the kind of repairs the house needs.
iBuyers: These companies rely on an automated valuation model to generate competitive offers closer to market value. They tend to pay much more than franchisors, therefore ideal for anyone looking to sell a house in a hurry without having to take a significant hit on the price. Some of the popular iBuyers include Open-door and Offerpad.
We Buy Houses: These are house-flipping companies that purchase houses that need significant repairs. The flippers pay no more than 70% of a house’s value. In return, they make the necessary repairs and then sell the property at a higher price.
Step 3: Evaluate cash buy offers.
Once a house is listed on a popular real estate platform such as Multiple Listing Services, the prospect of getting a string of offers from potential cash buyers is usually high. Unfortunately, there is no one size fits all formula for evaluating the strength of an offer. Therefore, it is important to evaluate each offer by its merit.
In addition, while evaluating the purchase price, it is important to pay close watch to the terms of the purchase, any contingencies and the closing schedule.
An investor may want to purchase the home as it is but still require an inspection, some may waive the inspection entirely.
Step 4: Compare the offers.
Once the offers start streaming in, comparing with the average price of houses on sale in the neighborhood should come into play. Therefore, you can reach out to a trusted real estate agent for comparative market analysis. Comparison is important if you need help determining a good home price. In addition, it will ensure the cash buyers don’t undercut you to make a significant profit on flipping the house.
Step 5: Happy? Sign The Contract
Once you settle on an offer that accurately reflects the value of your home based on all underlying conditions, you can move forth and sign the contract. The process is very similar to what happens when selling a house with a mortgage. Again, you can leverage the service of a real estate agent to prepare all the documents and contracts for the buyer and seller.
The contract should include the purchase price, deposit amount, any additional required fees and the closing date.
How to sell your house for cash fast in Michigan should never give you sleepless nights. The process is straightforward as it only involves ascertaining the home’s value, targeting cash buyers and evaluating cash offers once the property is listed for sale. Now that we have demystified the process, you can decide whether selling for cash is ideal or going the mortgage route, where you will likely get a better offer.