Home cash buyers or opportunity investors are the vultures of the real estate market. They swoop in when days out from the closure date on large properties and buy them outright for a competitive offer. The prices they offer are, in most cases, substantially lower than the valued price of the property. But to compensate for their low price, they wave most home inspection protocols and pay in hard cold cash.
To most desperate homeowners, they are a god sent; but more experienced sellers understand that there is always more profit to be made. Though there might be little wiggle room and time for haggling, negotiations are still open, and getting a better deal is always possible. In this post, we’ll teach you a few helpful tips that will help you get a competitive offer from home buyers.
Why is it dangerous to deal with cash buyers?
Home investors target specific types of sellers and offer well below the asking price. They also play it fast and loose, and closing a deal with them can potentially be dangerous if you’re inexperienced. They target property owners with trashed homes, in bankruptcy, divorcee’s, homes in foreclosures.
Research the company
If their phone calls seem sketchy and rushed, that’s a red flag.
After getting off the phone with them, try to flag down a website- something concrete that you can use to verify they are a legal or registered body. Better yet, go down to their office and see them in person. Look up reviews online and talk to past customers if they have any to find out how trustworthy they are.
Hire a Professional to appraise your home
If you are unfamiliar with the home valuation in real estate and you are yet to get an estimate of the cost of your home, hire a professional, and get one. Knowing the cost of your home is important and It makes you accurately determine if the offer given to you by the cash buyers is the right deal. The amount you are getting should typically be around 65% of the cost of your home. If the take home is less then it is unfavorable.
Keep your options open
One of the biggest lies hungry cash home buyers will tell you is that you have very little choice. That could not be farther from the truth. You are spoilt for choice, in fact, and you should not forget that. List your home with a real estate broker, market it on big real estate websites worldwide. Also, talk to notable agents in the industry. Actively search for more buyers with competitive offers, and you will have choices to choose from and avoid being forced into a deal.
Before you sign the dotted lines, have a financial adviser or lawyer look at the documentation. They will help you spot potential pitfalls and even identify places the buyer’s lawyers might have been trying to dupe you. Above will help you know what to do when you receive a competitive offer from home buyers.