04 Jan The Various Types of Cash Home Buyers
Interested in selling your home to a cash home buyer, rather than go through the tedious process of waiting for a bank to approve your buyer’s financing? Cash purchases of homes are completed much faster than ones in which even a well-qualified buyer takes out a loan. There are a few different types of cash home buyers, and knowing which kind you’re dealing with – and which kind you should be marketing your home toward, if you’re doing a For Sale By Owner – can go a long way in getting you the best price.
The first kind of buyer is the conventional buyer – an individual or family purchasing the home with their own funds. In these cases, the buyer may be purchasing after receiving a windfall or after saving for some time. Conventional cash home buyers will often try to negotiate a lower price, and potentially, more repair work before the sale, than a buyer taking out a mortgage will, and you will still need to take the time to locate the buyer. These buyers don’t often end up being much different than a buyer financing their purchase.
Business buyers are the next sort of cash home buyer. A business buyer is one who buys property under an LLC, LTD, Company, or Corporation, for example. They are not a huge segment of cash home buyers, but businesses make cash purchases on homes more often than individuals do. In many cases, they are looking to turn around and rent the property out afterward – if you’re getting multiple offers from business buyers and it is within your means, it may be worth considering keeping the unit as a rental property.
Flippers are one of the more common types of cash home buyers in today’s market. Flippers look at the maximum market value of the home, account for any repairs and renovations necessary on the home, and adjust their offer to the seller accordingly. After purchase, they make repairs, bring the home up to code if needed, and try to re-sell the home to another buyer at a small profit. If your home has extensive damage, is currently condemned, or if you need to get rid of it quickly, tracking down a flipper will likely be your best bet, as they will often take your house as-is. The as-is purchase allows the seller to avoid spending valuable time and money getting expensive repairs completed. And since cash home buyers do not require any bank approvals, closing time is generally very short.
Whenever you want to sell a home in a short time frame, or whenever large amounts of damage are present, consider working with a real estate company that works with large volumes of homes. Working in volume helps ensure that profit margins aren’t as thin as they are with individuals looking to “flip” a home, so they can often provide a better offer to the seller. In addition, they can be contacted directly, so instead of waiting for a buyer to find you, you can reach out to them. This sort of company – cash home buyers such as National Cash Offer – can negotiate with you for the most convenient move out date for your needs, whereas business and conventional cash buyers are often unable or unwilling to do so.