Selling your house to a cash ready investor may not have crossed your mind as a property seller as most cash buyers don’t really target the open market (properties listed on Rightmove or Zoopla via a traditional estate agent). The majority of property investors look for properties on forums, auctions and investment clubs purely down to the fact the average seller on the open market would refuse a below market value offer.
However, what if you need to sell your house fast? A property investor with cash to purchase your home could be the answer to your dreams, however they are never going to offer you full market value. Think of it this way, a property investor is like a car dealer, you wouldn’t take your car to a dealer to trade in and expect to get full market value. A property investor is the same they are a dealer of property and in exchange for a quick house sale you will have to discount by approximately 10 percent of your asking price.
There are some factors to bear in mind that will have an influence on the amount of cash buyer will pay for your home. These influencing factors are as follows:-
- What condition is your property in.
If your property is in good condition the chances are an investor who is looking to buy your property to let will be able to rent it out right after purchasing from you. What will be actively on their mind is the simple fact after making the initial purchase of the property they will not be required to further spend more money on decorating or maintenance (at least for a while).
- What location is your property in.
If your property is located in a major city with good transport routes, easily accessible universities and places of employment and generally good rental demand the chances of your property being of higher value to an investor will increase significantly.
- What is the size of your property.
The type and size of a property you are looking to sell will have an impact on the price and investor will offer you. If your property (for example) has the potential to be turned into an HMO (House of Multiple Occupancy) – an investor who specialises in this will have a high demand for properties like yours. It’s always a good idea to get an idea from a local estate as to what types of property are selling well in your area.
Most investors will buy on yield, meaning the percentage of profit they make each year from renting out a property. Having said that some investors are looking to refurbish and relist, or simply just relist. The motivation of an investor is of high significance when it comes to establishing their offer on your home.
Cash buying property companies offer a solution to homeowners whom are going through divorce, emigrating or in a financial situation whereby they need to sell their homes in order to raise capital. However cash buying firms will likely pay even less than general public cash buyers as they are big companies with a number of overheads they need to cover. On average you can expect an offer of around 85 percent of market value. The benefits of dealing with a cash buying company is 9 times out of 10 they can be trusted. You are certain you are going to have your sale complete in as little as seven days.
When selling your house for cash you need to make sure you are getting a fair offer, therefore use an online calculator to establish the potential of what a cash buyer is going to pay and take this offer to a local agent. Ask your local agent how quickly they feel they could sell your house for this price, and what they would anticipate your listing price would be.
Always remember that property investors are their to make a profit; and you should be weary of any individual that offers you a cash price directly. There are several ways you can confirm if a cash buyer is genuine, including:
- Asking them for proof of funds.
- Asking them to provide you with previous contacts of deals they have done.
- Asking them for a reference.
If you are in the situation whereby you need to sell your house fast for cash get the best possible price by following the tips above.