You’ve seen the signs at almost every street corner or off-ramp, “Cash for houses in Raleigh NC.” Some of these are cartoonish signs and others might even be handwritten, nailed to a light pole. Some ‘cash for houses’ signs make claims they buy houses in any condition and for competitive rates and all cash.
If you need or want to sell your home, this looks like the perfect opportunity to sell quickly without the headaches of preparing a property for showings…but is it?
Is Cash For Houses In Raleigh NC Right for You?
The Cash for Houses in Raleigh NC
Cash for houses is just a phrase that conveys a message. The message is meant to distinguish a buyer from a broker or agent. Many companies will buy houses directly from homeowners by advertising ‘cash for houses’ as opposed to a brokerage service.
The challenge with the real estate industry is that house-flipping, or rehabbing, is sensationalized on cable tv shows. Add to that the fact that people are selling courses on how to get rich quick to would-be investors all over the U.S. The problem is that the signs you see on the side of the road, “bandit-signs” as they are referred to, is one of the cheapest forms of marketing available. Also, you have no idea whom you’re calling or doing business with.
It’s best to do an online search for local cash home buyers in Raleigh NC, or whichever city you live in, and then read through the websites, and their testimonials, so you can determine if the company is reputable.
How Is The Offer Determined?
Professional buyers are seeking properties that can be improved and re-sold at a profit. So, most cash buyers are looking for houses that need some work. Whether it is some cosmetic improvements such as new carpeting, flooring, paint, appliances, and a punch list of repair items, or a full-blown renovation, investors will require a discounted purchase price.
Why would a seller want to sell their house at a discounted price?
Convenience is a major factor. When selling a home on the MLS, buyers are expecting a home that is move-in ready. Also, sellers are always competing with new construction homes that are tailored to the buyer’s tastes. When selling to a professional home buyer you can sell the home as it is, without having to make repairs, cleaning, or worry about the last minute items and stresses that come with selling a home.
Also, sellers can sell their home with certainty because there are no 3rd parties in the transaction. No appraisal, no banks, and no hassle.
This is reasonable as a lot of consumers are willing to part with money in exchange for convenience. Delivery services are an example of this.
What Are Your Goals?
Examine your goals and motivations? What are you trying to achieve with the sale of the property? Are you looking to get rid of an inherited property that has not been maintained? Or are you trying to sell our personal residence for as much money as possible?
Selling an unwanted property like an inherited home, is the best scenario for a cash buyer. While selling your primary home for as much money as possible is best for an agent.
Keep in mind there is a cost to keep a home. Everything from mortgage payments, insurance, and property taxes must continue to be paid while you own the home. The longer you delay a sale, the longer you must pay for utilities, maintenance, and upkeep.
As of May 2020, the average days on market are 29. This means it takes 29 days on average to find a buyer and accept an offer. Due to the coronavirus pandemic many services, such as mortgages, are backed up and are taking longer to process. Loans can take up to 60 days to close. You will have to determine if you can make up the difference in the cost of maintaining the home for the extended timeframe.
It may also be urgent to sell because of an impending foreclosure or estate tax cash requirement. Consider all of these factors as you begin to look at offers from buyers.
What Is The As-Is Value?
This means the value of the property in its current condition. The best way to do this is to find comparable properties in the area, that are in similar condition, that have sold in the last 6 months and base the valuation according to those. If you really want to know, pay a couple of hundred dollars for an appraisal.
Once you know what the estimated value is based on current market conditions, look at what can be done quickly and inexpensively to improve the property thus increasing the value.
The bottom line is if you can extend your timeline of a need to sell, you can wait for a more traditional buyer to come along and give you an offer that puts some money in your pocket.