Companies that buy homes for cash have become increasingly popular in the last several years. One of the reasons for their growing presence in the real estate market is that the process is so much simpler and convenient. Unlike traditional home sales with long, drawn-out procedures, these cash purchases are often very quick in comparison.
By avoiding mountains of paperwork and other requirements, homeowners can make a fast and easy property transaction without weeks or months of waiting. Cash house buyers make one-lump-sum offers to owners, but you might wonder how they come up with a fair number. Here are some of the things they take into consideration before extending an offer:
They assess the condition of the property
One of the biggest factors in determining a cash offer for a property is the shape that it is in. Since cash-for-home companies typically purchase properties “as-is”, they often purchase them in a wide range of conditions. As expected, the worse condition the home is in, the less the offer will likely be.
They estimate the market value
Cash house buyers like Myers Home Buyers create a comparative market analysis to calculate the current market value of homes they are considering. This process involves things like researching what similar properties have recently sold for and adjusting for any unique features or amenities that the home may have.
They consider the location
The location of your home will always play a huge role in determining what it’s worth, as well as what a cash home buyer will offer. Properties in desirable areas with good schools, low crime rates, close proximity to popular amenities, and other sought-after qualities will generally receive better offers than those in less attractive spots.
They factor in the cost of repairs and/or renovations
As previously mentioned, cash-for-home deals are usually “as-is.” Even so, the purchasing company still needs to assess the cost of any repairs, upgrades, or renovations that may be necessary in order to make the property ready for the market.
They account for holding costs and resale profit
Home-buying companies are investors, and as investors, their sole priority is to profit off of reselling the houses they acquire. When making an offer, holding costs such as property taxes, utility bills, and insurance must be factored into the overall price of purchase.
Should You Sell Your Home to Cash House Buyers?
The best way to decide if the cash home-buying option is right for you is to consider what factors are most important based on your situation. If you find yourself needing to finalize a deal quickly, then this is likely the best choice. Perhaps your home is in foreclosure, you are going through a divorce, you are relocating soon for a new job, or any number of other reasons.
Whatever the cause, if you wish to bypass the traditional routes of marketing, staging open houses, handling costly repairs yourself, and everything else that goes along with selling a home, then you really should take a serious look at a quality cash-for-home company.
