Did you know you can pay up to $15,000 on real estate agent commissions when selling your home?
While some people decide to work with a real estate agent, some sellers want to take a more direct route and sell to a cash buyer. If you’ve decided to sell your home to an all-cash buyer, you came to the right place.
Read on to learn about these mistakes not to make when selling homes for cash.
1. Listing Your Home With a Real Estate Agent
If you’re planning on selling your home to a cash buyer, it’s a big mistake to list your home with a real estate agent. Both methods of selling are different, but selling your home to a cash buyer defeats the purpose of having a real estate agent.
When you list a real estate agent, you have to sign a listing agreement with the agent. In the contract, you agree to work with this agent for the established period of time.
Most agreements state that you will pay a commission to the agent upon the sale of the home. The agent will put a significant amount of work towards listing your home, so they need to protect themselves.
Even if you sell the home to an all-cash buyer yourself, you will still need to pay the agent’s commission. If you’re sure that you need to sell your home to a cash buyer, you should refrain from working with a real estate agent.
2. Making Repairs to Your Home
You might have heard that many homeowners make repairs to their homes before selling them to increase the price and attract buyers. However, if you’re selling your home to an all-cash buyer, it’s a mistake to make these repairs.
When you sell to an all-cash buyer, you’re selling your home to a real estate investor. Real estate investors’ goal is to make the repairs and update the home, so they can later make a profit.
If you repair and update the home, you might turn off all-cash buyers since they won’t make a profit. In fact, cash buyers don’t expect owners to make any of these repairs and are willing to buy the home as-is.
Selling to a cash buyer is often a great option when sellers need a quick sale or cannot afford to make the repairs.
3. Setting the Price Too High
If you want to sell your home to a cash buyer, another mistake is pricing the house too high.
Keep in mind that while cash buyers will give you a fair price, you should not create unrealistic expectations.
Cash buyers will pay a just under market value for a home because they want to profit when they sell the home. Before you set the price too high, keep in mind that you will not have to pay for any repairs or update the house before selling.
It also makes sense to sell just under market value to a cash buyer because you will not have to pay for commissions, closing costs, attorney fees, and such. Because you don’t have to worry about the closing process, you will receive the full amount offered by the buyer once the sale goes through.
4. Not Creating a Move-Out Plan
Most sellers make the mistake of not to make move-out plans when they sell to an all-cash buyer. Unlike a regular sale, selling to a real estate investor means you will likely close on the house in as little as a week.
Because the buyer doesn’t have to wait for an inspection, appraisal, loan approval, and title work, there’s no need to wait months for things to go through.
When you take all of these things out of the equation, the sale can happen a lot faster than it normally would. If you’re planning on selling your house for cash, you must make a move out plan as soon as possible.
The last thing you want is for the sale to go through, and you do not have a place to live.
5. You Invest Money Into the Home
It’s always good to invest in your home and make upgrades to the house that make you feel happy at home. However, once you decide to sell to an all-cash buyer, you can stop investing in the home.
A mistake people make is continuing to invest money in the house after they already have an all-cash offer. Because the all-cash buyer will likely renovate the place, it makes no sense for the seller to invest money.
6. Looking for the Wrong Buyers
If you’re selling your home to an all-cash buyer, it helps seek the right buyers. While it seems like a straight forward process, you also need to find a reputable buyer.
Without a reputable buyer, you might not get a competitive price. There are also plenty of all-cash buyers that turn out to be scams.
Make sure you find a reputable buyer that is transparent and will offer you a competitive price.
Ensure the buyer has the funds to follow through and has a pristine reputation buying investment homes.
7. Not Leaving Your Emotions at the Door
Another mistake sellers make is not leaving their emotions at the door. Often, sellers feel too much emotional attachment, which clouds their judgment when getting an all-cash buyer’s offer.
When you’re selling your home to an investor, it’s important to leave your emotions out of it. The buyer won’t see the memories you’ve made at the house. They will see the potential and how much money they can make from the renovations.
Remember that you’ve decided to sell the house, and you’re ready to make new memories somewhere else.
Avoid These Mistakes When Selling Homes for Cash
Now that you know about these mistakes to avoid when selling homes for cash, you’re ready to find the right buyer.
People’s most common mistakes when selling their home for cash include making repairs, not making move-out plans, and setting an unrealistic price.
Are you ready to get a competitive offer for your home? Contact us today for a quote.