Chances are, you are just like most people that are not quite sure if really selling your house for cash can really get you a “fair cash offer” from any of the cash home buyers in the Reno area. Like most people, you may think this whole thing is a scam or you’re going to get a low-ball offer. So without further ado, let’s jump into this article and get to the bottom of the fair cash offer.
How Does A “We Buy Houses” Company Work?
If you are like most people if you have a problem or need a question answered, you take to Google. And just like other people that need to sell their house quickly, you both look for a ‘We Buy Houses’ company. Whatever you type into Google, you start looking through the results. Some claim to buy your house in 7 days or cash offer in minutes or even all your fees paid. Some of these companies that claim all these things I just mentioned, actually can deliver on what they claim. So then, you click on whichever one you like best and it looks like they can serve you best. You call the number or submit your info and someone speaks with you about the property and your situation. The next thing they will do, most of the time, is to schedule an appointment to come and look at the property. Someone will come out and do an informal inspection in which they may give you a written offer for your property after they are done with the inspection. Assuming you accept the offer, then the title company or a real estate attorney will handle the rest of the transaction. I personally like to use a title company because they not only answer your questions, they will let you know when to come sign documents or will send it to you to sign. Overall, this process is much faster than putting the house on the market with a Real Estate Agent or even trying to sell it yourself.
But I Want To Know If I will Get A Fair Cash Offer
I know, I know. That is why you are reading this blog post. It is because you want to know if you’ll get a fair cash offer from a cash buyer. The short answer is yes. But there is more to it. Each company is going to give you a different price, but they may all be right around the same price. As a cash buyer or investor, their business goal is to invest the time and money necessary into renovating houses and then put them back on the market for a profit. This will be a fair price based on what they feel the market value of your home will be once it is renovated and back on the market.
Okay, So How Do They Calculate their ‘Fair Cash Offer’?
There are several factors that go into figuring out the cash offer and most cash buyers have it down to an exact science. Some of those factors include the current condition of your house. If it’s a complete wreck, then you won’t get what the Zestimate says. Another thing that is factored in is any liens on the property, such as delinquent taxes, past-due water bills, and waste management fees. And believe it or not, some medical bills can put a lien against your house if they go unpaid. And here is the biggest one that people don’t think about, how long it will take to renovate the property and how long it will take to sell. With all of that time, the cash buyer still has to pay for insurance, property taxes, utilities, and sometimes loan payments — if they got a hard money loan.
Now, How Do I Know I’m Going To Get A Fair Cash Offer?
The cash buyer that you decided to go with is an actual legitimate company and you have an idea of how they calculate their offer, the next question might be “How do I know I am getting a fair price?”. There are some things you can do to check to see if the offer is good or it’s not:
- Check for a comparable property that sold nearby recently. Generally, you’ll want to go no more than six months ago, but if you’re in a rural area, it is possible that nothing has sold out there recently. Check properties that are similar to yours. If your house is a 2 bedroom, 2 bathrooms mobile home, it’s not going to sell for the same price as a 5 bed 4 bath stick built house next door.
- Really think about the cost of repairs. Your house may need repairs and in our area, the cost of a roof is anywhere between $7,500 and $17,000 (depending on the size of the home). Also, this often goes unnoticed, Kitchen renovations can cost anywhere between $2,500 to $12,000. So, if your kitchen hasn’t been updated since the house was built in 1920, it is going to be needing to be updated. Really consider how much it would cost to fix up the house.
- Learn more about your cash buyer. Ask them how long they have been in business or even poke around their website. Check their blog, if they have one, and see if there’s good information on it, and even check reviews and testimonials. Chances are if they have good reviews and good info, they are probably a good candidate to work with.
- Get multiple offers. Getting more than one offer may let you know if you are getting a good deal or not. You can eliminate a lot of doubt by getting two or three offers.
Ready To Sell Your House?
If you want to sell your house but can’t wait for it to be on the market, then a cash buyer is for you. You will get a fair price from a cash home buyer, it just boils down to which one in the Reno area you want to choose. If you are backed against a corner because you have too many repairs and no way to afford them, or facing foreclosure, or inherited a house you don’t want or it’s putting a burden on you, then selling to a cash home buyer is probably going to be your best solution. Now all you have to do is just pick one of those companies. Hint, hint.
At Envy Property Solutions, John and his team will make you a no-obligation cash offer for your house in order to help you avoid feeling like you have to auction your house or have a bunch of people in your house.
Have a question? Give us a call! We’re always ready to talk. No matter if you have questions about the house selling process, or want to get a quote for your house, we’re more than happy to help! Reach us at (775) 391–5236, or send us a message on our website!