If you’re thinking of selling your home quickly for cash, there are a number of advantages and disadvantages to the process that you should be aware of. The key for a seller will be to understand the real estate market in their area, which includes not only the city at large but the neighborhood as well. The higher the property values in the neighborhood, the better the prospect of going through a real estate agent. Here’s why.
In a seller’s market, there will be more buyers willing to invest in what is generally referred to as a “fixer-upper”. A “fixer-upper” is basically any home that requires extensive repair and renovation to remain habitable in the future. While fixer-uppers come in all varieties, it doesn’t really matter how bad the condition of the house is in a seller’s market. Someone will be willing to buy it. On the other hand, it’s going to take a savvy real estate agent to make it work.
Cash Sales Very Rarely Fall Through
While you’re likely going to see less money in a cash transaction, particularly if you’re selling to a company that plans on renovating the property themselves, it’s very unlikely that the deal is going to fall through.
Cash Sales Transpire More Quickly
If you want to avoid the rigamarole of getting a real estate agent and putting the house up on the market, selling your home to a renovation company can be an ideal option. Once again, you’re unlikely to get as much as you would for a home that is listed as a fixer-upper, but the deal is going to go through faster, and you’re going to have the cash on hand immediately.
There are also real estate agents that are willing to do quick cash transactions. They generally list the home for far lower than the property is valued at, but they also charge a smaller commission, simply to find an interested buyer and to manage the brunt of the paperwork.
Is the Speed of the Transaction Worth the Loss?
That’s hard to say and will differ from one place to another. If you’re in San Diego or the Bay Area, you may be better served by taking your time and finding the right buyer. It probably won’t be very difficult given the state of the current housing market and the number of interested buyers there are out there right now. That being said, the process will take longer. The real estate agent will need to come up with a plan for marketing the property, and take pictures, and a savvy real estate agent will be able to itemize the cost of the repairs that need to be done as part of the sale price.
