You’ve likely heard about investors who pay cash for houses and wondered how the process works and whether you’d get a fair price from cash buyers. Let’s see how credible cash house buying companies are, and if they’re the right fit for your house selling needs.
Paying cash to house sellers is a legitimate business and buying and selling houses is a respectable profession. Not every person selling a house will benefit from a traditional sale, that’s where a cash buyer can be beneficial. A cash buyer offers another way to sell your house. It’s just as legitimate as working through a financial institution, however, the process is much simpler.
If you are wondering if you’ll get a fair price from cash house buyers or not, the answer is yes. Cash home buyers are property investors. Their aim is to invest the time and money necessary into renovating houses and then put them back on the market for a profit. They will take the time to answer all your questions, evaluate your house and assess what they feel need to be repaired or renovated, then offer you a fair, no-obligation cash offer. This will be a fair price based on what they feel the market value of your home will be once it is refurbished and back on the market. Some of the primary benefits from this are:
- Not having to deal with Estate Agents and pay their commission
- Cash buyers cover solicitors, surveys and all other costs for you
- You get cash. No delays from banks and no deals that end up falling through because of failed financing, or because your buyer’s house sale falls through
- Cash buyers purchase “as is” so you don’t have to worry about making any repairs or even cleaning up
- Completion happens at a time and date to suit you
- For homeowners in a rush, it’s a smooth and easy process so you get your cash, close on the house and move on with your life
How is the fair price from cash buyers calculated?
There are several factors that go into the fair price you will receive from a cash buyer. Part of understanding the fair price from cash house buyers is learning how we buy houses for cash works. Reputable companies have been in business for quite some time and have it down to a pretty exact science. Before they will make you a cash offer, they will evaluate several factors when creating a fair offer including:
- The property’s present condition
- An approximation of how much it will cost to undertake the required refurbishment and/or repairs
- How long it’s going to take the renovate or repair the house
- The current value of homes in the area
- The value of the house after the renovation
- The cost of putting the house back on the market (estate agent’s commission, solicitors fees)
- How much it’s going to cost to maintain the house until it is ready to sell again (insurance, council tax, mortgage payments, utilities, etc.)
The cash offer will be calculated by estimating the future value of the house minus these types of costs.
How do I know I’m getting a fair price from cash house buyers?
Now that you understand that cash house buyers are legitimate, and have an idea of how they calculate their cash offers the next question may be: how do I know I’m getting a fair price from cash house buyers? There are a few ways to know for sure if the offer is a good one or not.
- Check out prices for comparable property that sold nearby recently. Make sure to consider factors like the properties condition, location, traffic and the size of the house.
- Think about the “as-is” condition of the house. If you estimate the cost to refurbish and renovate your home to be £20,000 then this is going to impact the cash offer you receive.
- Learn more about your cash buyer by asking how long they have been in business and about their experiences. You can also look at the investor’s website, their blog and other information provided. If they have a lot of information available, they most likely have a good track record.
- Get multiple offers. Getting more than one offer may let you know if you are getting a good deal or not. You can eliminate a lot of doubt by getting two or three offers. And afterwards, you won’t have to wonder if you would have been able to get more cash if you had held out for another deal.
Sell Your House Without the Hassle
If you want to sell your house but can’t wait for it to be on the market, then a cash buyer is for you. You will get a fair price from cash buyers for your house, no problem. Can’t afford the repair costs? Thinking about auctioning your house? Repossession pending? The best and most fair offer you’ll get will come from a cash buying company.
At K&G Lettings Limited, we’ll make you a no obligations cash offer for your house in order to help you avoid feeling like you have to auction your house.
Have a question? Give us a call! We’re always ready to talk. No matter if you have questions about the house selling process, or want to get a quote for your house, we’re more than happy to help! Reach us at 01482 961961, or send us a message on our website!