Selling A Home For Cash (In 2021)
2021 we are still in a sellers market, letting your home go to an investor can potentially leave $40,000 as a gift to that corporate wholesale buyer. Make sure you understand that homes are selling in days when listed with a traditional real estate agent, with multiple offers and you really won’t need to sell to a wholesale type of seller in this market for a fast sale.
We do understand and have helped in situations where you just can’t risk having the public doing showings in the home. In 2021 this has also been a very big topic in the real estate community. Agents are looking for ways to separate themselves from the pack and help home owners sell with as little showings as possible.
One way to do this is to sell with minimal showings is to use technology to make showings more interactive and engaging. The best way to do this is through virtual 360 tours, hundreds of high definition photos, and drone photography. The real estate community believes that your home can be sold with the right traditional agent with few showings.
Wholesale buyers or buyers that want to buy and flip your home for more money.
These are very popular in 2021, most are investors, or people that have dreamt of owning a real estate empire sparked from famous tv shows that single handedly make thousands of dollars buying and selling one home. Now they are hooked preying on people in desperate situations.
They will text, email, and cold call hundreds of home owners a day looking for a home owner that needs to move out for cash right away. Making them an offer and banking on leveraging the homeowners desperation.
The business is all about home owners who need to move out for cash and within days. Sometimes the home owner has family emergencies, such as a death in the family, or they are moving away for work. Other times the home owner has marital problems and needs to move out before they end up in divorce court.
Know your market, make sure you understand the condition of your home and the reality of what you can get for it making no repairs.
If your low on money, and almost desperate for money, selling your home for less to a wholesaler may not be the best idea. Desperate emotional financial decisions are not always the best for your bottom line.
I would talk to family, talk to your CPA, and your financial advisor prior to making any decisions to sell to a wholesale company.
I would talk to a Scott a professional real estate agent, and see what he thinks of your home, the condition, and where it will land for market price. Real estate agents can help you sell a home fast.
IBuyers A corporation that is online and will cash purchase a home
Similar to a cash home wholesaler, they typically will make you a pretty strong offer. Then during there inspection the will start aggressively taking money away in repair costs they expect you to cover at close of escrow. This will net you similar money as a wholesale offer most times.
They also have built in fees that are similar to commission fees, these wind up being very similar to a wholesale offer, or sometimes worst.
If you like an offer you have received from an Ibuyer, just make sure you read the fine print, and are aware of any fees they have built into the offer, the inspection costs, and how soon they want you to move out.
Meet with an agent and compare what an agent believes they can get for your home and the IBuyer offer. Most of the time you will net considerably more with an agent listing your home aggressively slightly under market value.
List to win!
That should net you the most cash and in 2021 it won’t take long to sell your home if you share your situation with a real estate professional. They can help you!
In most cases when wholesaling a home your leaving 12 to 17% on the table for the wholesaler, this is a huge chunk of cash, that you need especially if your considering cash offers, and wholesale buyers.
If you are a homeowner, you may have heard about the housing recovery or even you may be a part of it. Home prices are back up and there are plenty of other reasons to sell your home. If you are in the market for selling your home, it is important to know now is the time to list your property for sale. In a sellers market.
Corporations or home rental property managers.
Investors come in all shapes and sizes. Some manage their investments well, others not so much. In the current market, investors are typically purchasing homes to hold in their investment portfolio and turning it into a rental. If you are interested in selling your home to an investor, it is important that the offer is managed well with your current needs.
These corporations will typically make offers on hundreds of homes a week sign unseen, that are listed on the MLS, and some of them are open to negotiations if the seller believes the offer is too low.
Most homes that get listed on the MLS will get an investor offer. Most listing agents will probably advise you to pass on these offers. Knowing that the agent, and or buyer, has never seen the home. The offer is less likely to close escrow then an offer from a buyer that has been in the house and has fell in love with it.
Understanding the Current Market Value of Your Home is Important
You may not know it, but your home is a significant investment. It is the single most important possession you will ever have and if you don't know its value, then it could cost you a lot of money in the future especially when negotiating with wholesale sellers.
Don’t trust the values of online values alone. They will vary in price significantly and they cannot look into your home and see the current condition. Always talk to an agent, think about getting a professional home appraisal, and talk to your financial advisor before looking into wholesale offers. You may be pleasantly surprise when selling your home traditionally.
It is important to know the value of your home. Knowing your home's worth will help you accurately plan for mortgage rates and potential fluctuations in the housing market, as well as provide peace of mind in regards to financial planning. Knowing your market will also help you decide what wholesale home buyer is being competitive with offers and what wholesaler is being greedy.
Most people know they can search the internet and find multiple places to get your home value. We have an online valuation tool. We are very easy going, we will email your home valuation, and check with you what your timeframe is. If your in a hurry we will proceed in one direction, if your not in a hurry we will update you with the market value and a market report from time to time.
Your facing foreclosure, or a forbearance is about to end what do you do?
This is a tough situation, and it's important to know that you are not alone in this. No matter the situation, you need to be proactive in your response. If you are facing foreclosure and have assets that can be liquidated, you may be thinking wholesaling your home is your only option, but its not it is important to talk to Scott a real estate agent that knows how to navigate and negotiate with your bank to sell the home before you lose your equity to foreclosure.
With forbearance homes, most of the homes in forbearance still have built in equity because the real estate market has gone up so much. Homeowners are thinking they will lose the home to foreclosure probably need to understand what there home is actually worth since the market has gone up significantly over the last year. This is not 2006 you probably have more options then you think, like refinancing, traditionally selling, or short selling.
Bottom Line
2021 real estate is much different, and in most situations there is no need to go the wholesale route. Homes are selling in days, with multiple offers, buyers are desperately looking for homes in almost any condition. 2 years ago when it took 45 days to market and sell a home this would be a different story.
We tried not to make this a seller beware, but the reality is if you are thinking about wholesaling your home and your not sure, or in a very desperate situation, talk to a professional real estate agent, a CPA, and a financial advisor, people and family you know you can trust first.
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