When most people think about selling their houses, the only option that seems to pop into their heads is to hire a real estate agent and get to work finding traditional buyers. This can easily be explained away by the fact that not a lot of people are real estate experts who have intimate knowledge of all the other ways one can sell his or her house, as well as being well informed on all the pros and cons associated with each sale option. However, in an even larger number of cases, people still tend to prefer hiring a real estate agent even when they are provided with all of the information above.
Why? Well, that’s a pretty easy question to answer. This phenomenon primarily takes place due to the fact that hiring a real estate agent is the social norm. Sure, there may be even better options out there that can grant you higher prices and faster closing times; however, most people are just so used to the idea of hiring an agent that any other option is barely considered when selling their houses.
But you can rise above this. In this blog, we are simply going to provide you with the information to make an informed decision on your sale option, rather than simply jumping into hiring a real estate agent like everyone else. We’ll strike out a few of the biggest misconceptions that people have when it comes to cash buyers and show you how a cash buyer could potentially be a better option for you.
The decision that you make after reviewing the information below is completely up to you. However, once you have the knowledge and still choose to work with a real estate agent, you’ll at least have peace of mind in knowing that your decision was informed.
So without further ague, let’s get to it:
1) Cash Buyers don’t pay as much as traditional buyers
The first misconception that most people have about cash buyers, and arguably one of the biggest reasons why this sale option is rarely ever considered, is that cash buyers pay peanuts. Upon first thought, many homeowners instantly make the conclusion that a professional home buying company is only out for profit, and that the real money can only be found on the open market with a traditional buyer. And to some extent, this is actually true…
However, the part that a real estate agent will often neglect to tell you when they beguile you with unbelievable offers that they say can only be found with retail buyers is that while your sale may generate a hefty sum, you won’t be walking away with nearly as much. As such, your net take away will usually be a lot less than you’d get in your pocket from selling directly to a cash buyer.
Let me elaborate a little further:
With a cash buyer, your offer is exactly the amount that you’ll take away. They will cover all closing costs and fees, and you won’t have to pay any commissions. So the amount that they quote you during negotiations is exactly how much you’ll get at closing and from the overall sale.
However, with traditional buyers, you’ll often face a laundry list of expenses, both in trying to find the buyer and in closing the deal. To name a few, you’ll have to open your wallet and pay for listing costs, advertising costs, staging costs, repairs and upgrades, then closing costs. And if that’s not enough to break your bank, don’t forget the steep 6% agent commission on average that you’ll have to cater for, 3% for your agent and 3% for your buyer’s agent (because it’s common practice for the seller to handle the buyer’s agent fees from the sales proceeds). So after subtracting all of this from your sale price to get your net takeaway, it’s not uncommon to find that your net takeaway will be lower than a cash offer from a home buyer.
From this, it’s clear to see that working with a real estate agent may not be the get rich quick money-making option that you’d originally considered it to be.
2) Online Cash Buyers are Scammers
Sure… a large percentage of sights that promise money online are often scams. However, that does not mean that all cash buyers are not to be trusted. And this brings us to our second common cash home buyer misconception: most people think that home buyers who reach out to potential sellers through online platforms are malicious scammers that are looking to swindle you out of your hard-earned money.
While there are scammers out there (and some of them may present themselves as cash buyers), this simply isn’t true for all professional home buying companies available online. Cash buyers often turn to online platforms because they provide the largest audience and can allow a company to get in touch with millions of potential sellers throughout a specified state. So you shouldn’t worry that every professional-looking website that you come across promising free offers and upfront cash is simply a scam that’s too good to be true.
Be that as it may, it is always important to do your due diligence before agreeing to any sort of deal with a cash buyer online. Here are a few methods that you can use to verify that the cash buyer you’re considering selling your property too is actually a valid and legality licensed company:
- Visit their website and look for a bio (about us) section with information on your buyer. If you cannot find any personal information on the buyer (e.g. a name or general description), this is certainly a red flag.
- Visit their social media pages and look at the cash buyer’s activities.
- Preview through their reviews and testimonials to see if what they’re promising you is true.
- Contact them and see if they’ll meet you face to face. If they refuse to do so, this is a particularly big warning sight that you should certainly take note of.
3) Cash buyers are looking to take advantage
And last but not least, many people think that cash buyers look to take advantage by buying properties at obscenely low prices than selling them at much higher prices to make a killer profit. While this might be true for some professional home buyers who do prize local home sellers and seek to find only the best solutions for them.
So there you have it. Here are three of the largest misconceptions that people have about cash buyers, and the truth that not many others will tell you. Now, you’ve been equipped with all the knowledge you’ll need to make the right decision for your home sale.