Is It Risky To Sell My House For Cash?
March 10, 2021
Eying for a buyer who will pay for the house in cash?
Well, the idea of selling houses for cash may seem an easy pathway. The reason being, you don’t have to worry about bank account and payment acceptance issues. Also, you do not have to compromise on your urgent need for cash. Although it has its pros, selling the house for cash can be a risky deal.
Hundreds of real estate websites make it like a “no big deal” scenario. These sites claim to offer you effortless deals. However, generally, these sites are operated by independent real estate agents. Now, the point is – do these sites or independent real estate agents have your trust? Certainly, not!
When it comes to money matters, especially the large amount of money involved in a house sale, it can be challenging to build trust in an agency or real estate agent. Thus, it is relevant to say that selling your house for cash is definitely risky.
So, what’s the solution?
This is where you need guidance. And that’s exactly what you will get here at The Negotiators. We can help you drop the scale of such countable risk to zero.
Wondering how? Well, by providing all the guidance and knowledge that you need while selling your house for cash.
Let’s begin with some simple precautions that you can keep to eliminate the common risks involved while selling your house for cash:
Don’t Be Desperate
In the event that you are in a hurry to sell your house for cash, you would try to seal the deal with any buyer who first knocks at your door. If you reveal your desperation to sell the house when you meet the first buyer, it can impact your house’s market value.
Well, when the buyer observes that you want to sell the house quickly, they try to negotiate on the selling value. And once the value of a house declines during a real estate deal, it undoubtedly impacts its market value.
There are countable benefits of selling houses for cash, such as no maintenance cost, no regular home at display visits, and no need to follow the traditional listing process. However, in your attempt to get the cash fast, don’t end up getting a lesser value for the property than you deserve.
Be Prepared To Encounter Non-Friendly Buyers
When you advertise to sell your house for cash, not all the buyers that will come to buy the property will be friendly. They will try to negotiate and behave as if they are doing a favor on you. Prepare yourself for such scenarios.
Buyers will often seal the property deal in the presence of a lawyer, so don’t let that scenario come as a surprise for you. There will be buyers who will try to set up strict terms & conditions to bind you according to their choice. That’s the kind of deal you would want to stay away from.
It is, therefore, advisable, that you deal with commercial people who accept to buy your house for cash in simple words, without any hidden terms.
You don’t want to end up regretting it later
Did you know that – on average, a cash deal leads to 30 – 35% loss on a house’s market value?
However, this is when you have a careless attitude when making the deal.
To begin with, if you have a “don’t care, where I sign” behavior while selling your house for cash, you are going to regret it later.
In the past few years, The Negotiators have come across multiple situations where house owners don’t have a near idea of their home’s market value. Indeed, in their mind, their house is +10% worth of its buying value years ago. The result is that they end up selling the home for a far lesser value than it actually deserved.
This is where getting in touch with a genuine cash buyer, only after thorough research, is the only solution.
For instance, you need to remember that if you are dealing with an independent cash buyer who is not associated with any real estate agency, it can be a tricky situation for you. Independent cash buyers offer 60% to 90% value of the house to deal in. Thus, with every “sell my house for cash” deal, 30% to 35% of a house’s market value goes off-course.
Home Agreement Scams Are Common – Stay Alert!
“I must sell my house for cash” – this thought can cause you to deal with more significant issues in the future if you unintentionally caught the attention of scammers.
Scammers hold keen observation and experience of how to fool their customers. Contract bait and switch is one of the most common scams that run in real estate.
- Bait and switch Scam
Bait and switch is a scam where the buyer creates a contract that adds up to the seller’s advantage.
However, at the time of the final deal, the buyer changes the terms & conditions in such a way that the seller does not notice them. Thus, after signing the deal, the seller does not have much choice but to pay as per the contract.
- “Refinance and Equity” Scam
Another scam that has constantly downscaled the reputation of real estate agencies is the equity scam. It is widespread nowadays. Have you ever heard of “refinance and equity scam?” In the official language, it is known as equity skimming.
By definition, Equity Skimming is a fraudulent activity that buyers undertake.
To begin with, these buyers lookout for “sell my house for cash” homeowners who don’t have much experience in selling properties. Under this scheme, the buyer buys the house. Refinances it. And further, takes away the equity without transferring cash to the seller.
In the end, the seller is left with no choice. Now, the sellers can neither sell the house nor live in it because it’s in the name of the fraudulent buyer.
After observing the possible scenarios, I’m sure you will feel that going with the thought to “sell my house for cash” can be a precarious situation.
Well, not exactly. It can be risky if you don’t have the right buyers for cash. This is where The Negotiators can be your best friend. You can get all the information you need from the experts at The Negotiators, or choose to go with their Negotiator Recognized Partners; experts who will negotiate for the deal on your behalf and ensure that end up getting the best value for your property.
So, are you ready to sell your house for cash?