Bet you never thought you’d see an article on a cash buyer’s website on why not to sell your house to a cash buyer. I mean, why would someone who’s trying to buy as many houses as possible for cash tell you why not to sell them your house? I’ll tell you why. Trust. My selfish reason for giving full disclosure is that I want you to trust that I will tell you everything about how and why I pay cash for your Colorado Springs house, and then you can decide if what I offer is your best option.
Truth #1: A cash buyer will almost never pay as much for your house as a retail buyer. All right, this truth probably is not much of a surprise. The value of a cash buyer is not their ability to pay top dollar, but that they can quickly purchase your home and eliminate all the problems that go along with that. There are only two ways you can get top dollar for your house. One is to get it in perfect shape and list it with a Realtor. The second is to sell to an investor and allow them to pay for your house over several years.
Truth #2: Cash buyers have a lot more to offer than just paying fast cash for your house. As a seller you have a whole lot of things you need to do when you sell your house and move somewhere else. You need to pack and move your things, clean out your house, pay all the selling and moving expenses, find a new place to buy or rent, etc. Anything you can think of that you need help with, a cash buyer can help you with.
One of my favorite examples of helping someone was when I purchased a home from a widow in her 80’s. She didn’t know too much about financial matters and had not one to help her move or find a new home. Her house and yard required a lot of maintenance and she wanted to move into a smaller house in the city. I was able to work with her reverse mortgage company to find out exactly what she owed, paid her a fair price for her home to cover these expenses and over 10 years’ worth of rent, found her a perfect place in the city right down the street from where she volunteered, and even hired full-service movers so she wouldn’t have to lift a finger.
This is just one example of some of the services a cash buyer can offer. Use your imagination for what you could use help with and ask. The worst that can happen is the cash buyer says no.
Truth #3: Less than 3% of home sellers are a good fit to sell to a cash buyer. The majority of home sellers are better off taking the time and effort to sell their home the conventional way through a Realtor. The equity you need to leave in your house for an investor to quickly pay cash for your property is not worth the sacrifice to most people. There are only two situations where you should consider selling to a cash buyer. One is if you absolutely need to sell your home quickly. I’m not saying you’d like to sell your home quickly to avoid all the hassles that go along with selling through a realtor. I mean you NEED to sell your home in the next 90 days or less. The second reason to sell your home to a cash buyer is if the condition or location would make it difficult to sell in a conventional way. These are the majority of homes that I purchase. The homes are either very dated or need lots of repairs and the sellers do not have the money to do the work themselves. Trying to sell these types of homes through a realtor is very difficult as the majority of buyers would not even consider buying these types of problem homes.
Truth #4: There is a way an investor can pay you top dollar for your house. I know I’ve said throughout this article that cash buyers almost always pay less than retail, but there is a way we can pay up to 95% of what you would sell for on the open market. The way we can do this is if you are able to receive payments for your house over several years. Ideal candidates for this type of sale are either people that own their house with no mortgage and would like to receive a stream of income over time to maximize the sale price, or someone that doesn’t have enough equity in their home to cover all the commissions and fees when they sell. By selling to an investor, the second group is able to move without come up with potentially tens of thousands of dollars to cover all the expenses.
Truth #5: We’re in business to make money.OK, so this one is not much of a surprise either, but I often hear people bad-mouthing cash buyers when they make a profit on buying, fixing, and selling a house. I talk with several sellers every day and I always love hearing their stories and helping inform them on options they were not previously aware of. But the truth is that I am not able to purchase most of these sellers’ homes for the prices they desire. The most common scenario I see is when a seller is thinking of selling their house, they know it needs some work and they don’t want the hassle of fixing, cleaning, showing, negotiating, waiting, and all the other hassles of selling through a Realtor. They do some quick math in their head and realize it will cost them at least 10 to 15% of the sale price in expenses, so why not offer sell their house to me for that price and avoid all the problems. I can’t blame anyone for wanting to sell their house this way. I’d do the same thing if I could get someone to buy. The problem for a cash buyer is that if they purchase your house for a 15% discount, they have tied up a large portion of their capital and are going to make zero dollars on the deal. How much much money would you need to make to write a check big enough to buy someone else’s problem home.
So now that you know all the reasons not to sell your house to a cash buyer, you also know enough to know when you should consider a cash buyer. Information is power, and now you have the power to make the best possible informed decision about how to sell your Colorado Springs house.