If you are a homeowner and are considering selling your house, then any type of research most likely brought up some articles on the pros and cons of selling to an all-cash buyer. Unfortunately, many articles highlight the myths (advertised as facts!) that relate to selling to an all-cash buyer. Well, we at Gulf State Homebuyers are here to share with you two truths that we believe every homeowner should know. There are numerous benefits to selling your home to an all-cash buyer; however, these myths often steer homeowners in the other direction. We hope that by providing you with these two truths we can help you make an educated choice on the next best move in your home selling process. Now – let’s start debunking!
MYTH #1 – ALL-CASH BUYERS GIVE LOW BALL OFFERS
Homeowners in general report feeling fearful of selling to an all-cash buyer because they believe that all-cash buyers are going to provide an under-market offer. This myth is commonly marketed by real estate agents because it can be identified as a competitive advantage to agents.
Nonetheless, this myth is false. An all cash-home buyer is a real estate investor. They are educated in the market and have the capital at hand to purchase homes in their identified areas. The offers that they give can be below the valuation – however, this does not mean that they are low-balling the homeowner.
Just like when a homeowner works with a real estate agent, the first thing a real estate investor will do is valuate the property. They do this by considering other homes on the market, their selling prices, recent closes, quality of the home, as well as a few more variables. Once they have the valuation, they make an offer
This offer is sometimes below the valuation of a respected agent – but, why? Well, when you are selling your home on the market, there are additional costs that will be incurred by the home seller. First, they will be responsible for the agent’s commission – this is both the commission for the seller and the buyer’s agent and is generally 6% of the closing price. Secondly, the home owner will be responsible for closing costs. These costs are in addition to the agent fees and range from 2% – 5% of the closing cost of the home. Lastly, the seller may be responsible for paying for specific inspections and upgrades.
When an all-cash investor, such as Gulf State Homebuyers, makes an offer, these factors must be considered. For example, Gulf State Homebuyers covers all closing costs, removes all agent fees, purchases homes as-is, and even assists with seller moving expenditures. If taking into consideration these extra costs, the price that an investor makes is usually comparable to what the homeowner will receive at the end of paying all their fees at closing anyways. However, the benefit of selling to an an-cash investor – the time frame to close is exponentially shortened!
MYTH #2 – YOU CAN GET MORE WHEN YOU MARKET YOUR PROPERTY
Many homeowners believe that the more eyes that see their house, the higher price they may receive – this is false. Conversely, the longer that a home sits on the market, the fewer offers the homeowner can anticipate, and they may incur the dreadful necessity of a price reduction in the future.
An effective agent will price a property accurately which means that the home should find a buyer relatively quickly. Though, there are additional factors that can affect this process, including the strength of the market, how many buyers are ready to purchase, and even what season it is that someone is marketing their home. With this uncertainty in finding a home buyer, and the threat of your home sitting on the market for an extended period of time, then the best option for selling your home comes down to a quick close – which is what an all-cash investor provides. Just as mentioned before, the price is competitive to the profit a homeowner would make from marketing their home on the market. But in selling to an all-cash investor, the anxiety of “what-if” can be removed, providing homeowners with ease and simplicity in selling their homes. We here at Gulf State Homebuyer can close in as quickly as 5 days!
Get Your Free Consultation
Determining the best solution for your future can be challenging. That is why we here at Gulf State Homebuyers provide our clients with free consultations and home evaluations. We educate clients on how we determine the price of their home and allow them to decide for themselves if selling to us is the best option. There is no commitment necessary. Contact us today and find out how our offer compares!