If you’re selling a home fast, the traditional route may not be your best option. Even when you get an offer, the average time for a mortgage to close is around 49 days. That’s without any delays, having to renegotiate with your buyer, or your buyer having a mortgage application fall through.
Negotiating a cash offer on a home is usually the fastest way to get cash in your pocket. In 2021, cash sales accounted for 30.3% of all US home sales. If this trend continues, there are plenty of motivated cash buyers out there who could seal the deal in a matter of days.
Let’s take a look at how to sell a home for cash and what options you should be aware of.
1. Get an Accurate Valuation
A valuation is an important starting point in the process of selling a home, and it’s not something you can pick out of the air. Valuations are based on several factors, including:
- Local market conditions
- Demand for the type of home you’re selling
- Sale price of comparable properties in the area
- The condition of your home
If you’re looking to get a fast sale for cash, you need to be realistic about the valuation. Set the valuation too high; it’s unlikely anyone will even want to view, let alone make an offer on a home. The valuation needs to be realistic but also include a little room for negotiation.
If you’re not working in the local real estate industry, your property valuation is going to be, at best, an educated guess. Your best bet is to talk to a local realtor to get a realistic valuation based on the factors above.
Can You Sweeten the Deal?
To get the best price for your home, you can offer to do work to sweeten the deal. For example, if the home inspection shows that the roof needs major repairs, you can pay for them out of pocket to seal the deal at the right price.
Alternatively, you can agree to pay their closing costs. This can be a good tactic as for a cash buyer, it means that the price they agree on is pretty much the price they pay. You may want to take this into account when setting the initial asking price.
2. Prepare a Counter Offer
If you get a lowball cash offer, you could just reject it out of hand. Alternatively, you could prepare a counter offer at a level you’d be willing to accept. You know they have the cash, so you’ve got nothing to lose.
The key is to give yourself time. The buyer may try to put you under pressure by setting a deadline. If you’re not comfortable with this, let the deadline pass.
You need to feel comfortable with the price you agree on for the rest of your days. You don’t want to go away with a lot of ‘what ifs.’ So give yourself some thinking time to think clearly and rationally about your next move.
If the new offer is rejected and they don’t make an acceptable counter offer, be prepared to walk away.
Cash buyers are usually motivated by getting a great deal so they can flip the property or turn it into a rental. The emotional part of buying a home is not a factor in this kind of deal. Prepare yourself mentally for some tough negotiations, and don’t go for an offer just because it’s on the table.
3. Consider All Your Options
If you’re looking for an alternative to seeking a cash buyer on the open market, a cash-for-homes company could be a good alternative. You may have been put off by reports of them only making low-ball offers. It’s true that their offer will be below the market value of the home, but they also come with some serious advantages.
First, they’ll make a cash offer and stick to it. There’s no need for a home appraisal, and they won’t try to barter you down. They’ll complete their own brief inspection and then make you a cash offer based on what they’re prepared to pay for it.
Companies like Emperor House Buyers can close on a real estate transaction in as little as 5 days. You will not have any fees to pay other than any outstanding mortgages or liens.
Why Would You Consider a House Buying Service?
A house buying service will not get you top dollar for your home. But they will save you a lot of time. If you’re being threatened with foreclosure, they could also get you out of that situation.
Even if your home does not have enough equity to pay off the mortgage, the lender may be able to help. Talk to them about whether they would be willing to agree to a short sale to avoid the expense of foreclosure. A house buying service could give you fast access to cash to make this happen.
There are also no appraisals, no showings, and no repairs to pay for. They buy the house as-is – you don’t even need to clean it.
They also eliminate the negotiation process. They make you a cash offer that is not open to negotiation. That’s offputting for some people, but others appreciate knowing where they stand.
At that point, if you’re not happy with the offer, you can simply walk away.
Successfully Negotiating a Cash Offer on a Home
Negotiating a cash offer on a home starts with an accurate valuation. Then steel yourself for some hardball negotiations.
You’ll need to know what you’re willing to compromise on and what you won’t budge on. Be prepared for some stress and tears along the way as you find the right cash buyer.
Alternatively, you can work with a house buying service. You won’t get the very best price for the house, but you won’t have to negotiate. Plus, you could close a lot more quickly and move on.
The choice is yours! Whatever you choose, check out our helpful finance articles today.
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