18 Apr Understanding Cash Offers For Your Home: What Makes a Good Deal?
When considering selling your property quickly for cash, it’s crucial to understand what constitutes a fair deal. Cash offers may seem straightforward, but several factors determine whether the offer is genuinely beneficial for you, the seller. Here, we will explore what makes a good cash deal, helping you make informed decisions and maximise your benefits from such transactions.
Evaluating the Offer
It promises a quick, hassle-free sale, often with fewer contingencies. However, not all cash offers are created equal, and it’s essential to assess them carefully. A good cash offer should:
Be Around 15-20% below market value: While most cash offers will be slightly below the market value to account for the buyer’s need to profit from the eventual resale, they should still be reasonable. Check comparable sales in your area to get an idea of what your home might be worth in a traditional sale. This comparison will give you a baseline to determine if the cash offer is fair. Estate agent valuations can sometimes be slightly overvalued in order to keep you on the books in a high competitive market.
Have Transparent Terms: Good cash buyers will provide clear, straightforward terms. This means no hidden fees, no last-minute changes, and a clear timeline. The offer should clearly state what is included, such as closing costs or other fees that the buyer will cover.
Provide a Quick Closing: One of the primary advantages of a cash sale is the speed of closing. A good cash offer will typically allow you to close within a few weeks, depending on your preferences. Ensure the timeline aligns with your needs, whether you’re looking to move quickly or need a bit more time to relocate.
Understand the Buyer
Who is making the cash offer? An essential part of evaluating whether a cash offer is a good deal involves understanding the buyer. Reliable cash buyers:
Have a Proven Track Record: Look for buyers who have experience and positive testimonials or reviews from previous sellers. Google and TrustPilot are a good place to start looking.
Are Transparent About Their Processes: A trustworthy cash buyer will be open about their business model and how they calculate their offers.
Are Contactable: Are you able to pick up the phone and speak to the company and are all of your emails answered promptly?
Offer Flexibility to suit your needs and situation: Good cash homebuyers can work around your schedule and are willing to accommodate specific requests you have regarding the sale process. Each situation is unique and you need to know that your onward move is a smooth one.
Market Conditions and Timing
Market conditions significantly impact what constitutes a good cash offer. In a seller’s market, you might receive offers that are closer to your home’s market value, whereas, in a buyer’s market, offers might be lower. Understanding current market conditions can help you set realistic expectations about what a good cash offer looks like.
Additionally, consider your personal circumstances and timing. If you need to sell quickly due to personal reasons such as a financial emergency or a job relocation, the benefits of a quick and efficient transaction might outweigh getting a slightly higher price in a traditional sale.
Have you already signed a contract to sell your house to a cash buying company?
We can walk you through the steps week by week on how your sale should go.
Week 1
You have received and accepted a cash offer for your home and the company has presented you with the written contract that is clear and easy to understand. You have also gone through any questions or doubts you may have had and understand the process fully before signing.
The company has started the process of buying your home
At this stage these are the things you need to be aware of:
Solicitors – Have your solicitors been instructed? If not, why not?
Survey – After the first week your buyer should have instructed your survey. This will show their commitment to your sale.
A word of warning to keep in mind.
Property Photos – Have you been told a photographer will be around to take photos or asked to submit your own photos? If so, this is a sign that you may not have sold to a genuine cash buyer.
Week 2-3
By now your survey should have been done and you should be looking forward to getting the results. If your survey hasn’t been booked then your buyer could be trying to purposely delay the process.
Why do buyers delay the process?
Are the company actually buying it – Many companies claim to be cash buyers, but actually they are not. They agree on a price with you and then try to resell the property to an investor. This will mean that the buyer will have to arrange finance and this will take some time.
So if they haven’t booked a survey it could be because they are waiting for their buyer to arrange finance, typically these sales take 7-8 weeks.
For example, go online and keep and eye on Rightmove and Zoopla. If your property is listed then this is a telltale sign that your ‘buyer’ is trying to sell your property.
Stall Tactics – Some companies may try and drag the process out longer than promised.
Why do they do this? In most circumstances, it’s because they may be trying to get the property at a cheaper price.
Week 4
The clock is ticking and you should be all packed and ready to get moving.
If you aren’t ready then here are a few telltale signs that your buyer is stalling your sale.
Just to recap on the past few weeks?
Your Property Survey – Is your buyer stalling booking in your survey? This is a common tactic to either find you a buyer to take their place or to drag out the process to reduce their offer.
Week 5
Completion Date – By now your completion date should be set in stone. If your buyer is not committing to setting a date then they may be having second thoughts on your house.
By now you should have completed the sale and be moving on to writing the next chapter.
Commonly, buyers don’t do as promised both on the open market and also when selling through a quick sale company. So if your property hasn’t been completed then you’re not alone and you still have options.
So if your survey hasn’t been done, you haven’t been given a completion date and you have lost all faith in your current buyer then we are still here and we can complete your sale for you.
Feel free to get in touch with us today on 0800 612 1366