Selling your home to a cash buyer is much easier any day than hiring a realtor.
A cash buyer or house buying company can purchase houses without mortgage funding. No house chains are attached, and their buying process is super fast.
Having said that, not all cash buyers are genuine and intend to offer the best price. Especially if you are a layperson, it is important to weigh their credibility.
And that is where these following five questions come in. So, without further ado, let’s look at them:
- Who is the end buyer?
Although most cash buyers claim to be the end buyers of your property, you should only believe people after you read the contract yourself, warns Paradise Management.
If they do not provide the contract facility, you can hire an agent to draw one for you. Contracts are important to clarify the trade terms. In other words, both the buyer and seller are mentioned there.
Thus, it is best to refrain from selling your house to a middle person or a company acting as one so that unnecessary chaos can be avoided.
- Will you purchase the property as it is?
Most cash buyers do not require you to mend the property before selling it. It allows you to save a decent amount of money on repairs.
However, some buying companies may require you to complete the basic repairs. In our recommendation, it is best to avoid such companies as sometimes even basic repairs can eat a large chunk of your cash.
Genuine cash buyers do not have any such buying terms. They take your property in its current state. So, ensure that your cash buyer sticks to this basic cash-buying norm.
- Can you tell me about your cash offer?
Cash offers are often lower than your house’s actual value, given that no repairs are needed.
But before asking for their offer, it would be best to do your own research. For example, you can check the value of homes in your surroundings and calculate the value of your own house using online tools and details about hidden fees and property taxes.
Once you have an idea of the overall scenario, it will be easier to judge whether the cash buyer is offering a fair price or not.
- What are the offer terms?
Many cash buyers would make verbal commitments around their offer. For example, they may try to tell you how hassle-free the process is. But we recommend not believing the verbal stuff. Instead, it would help if you looked closely at what is written in the contract.
For instance, some cash buyers may want to get an inspection done before purchasing.
Therefore, the seller should have a clear idea of closing terms, payment plans, contract formats, etc.
However, if all this sounds baffling, it would be best to seek professional help or an agent’s advice.
- Do you have any testimonials and reviews to share?
Once you clearly see the buyer’s identity, cash offer, and buying terms, it is time to ascertain what the customers think about the cash buyer.
Before asking them about their testimonials, you can check their presence on Google and social media platforms. Being great levelers, Google and social media reviews and rating sections will tell you how a buyer’s previous customers perceive them.
You can then allow them to tell their side of the story by asking them to showcase their testimonials.
Cash-buying companies are great for people who want to evade hefty and time-consuming processes while selling their property.
But it is equally important to weigh each buyer on the merits of these five points mentioned above.
So, consider these points before getting a no-obligation price quote on your property.