Major changes are happening in the real estate market. These changes are being driven by technology and evolving consumer preferences. The desire to sell houses quickly is fueling these changes. Folks want to sell their homes quickly for a myriad of reasons: they might need the money; they might have received a job and need to relocate; or maybe they are just tired of their old home. One common misunderstanding about home sales is that if you sell a home “quickly,” you do so at the cost of making less profit. This could not be further from the truth, however; the fact is that nowadays, an increased volume of offers made on a house comes in the form of cash offers.
Cash offers make the sale faster. Cash buyers have the money they need to buy the house outright. All they need now is to move in. No longer do buyers have to anxiously wait for the loan to be approved, nor for the home inspection process to finish, which takes up to 14 days at most (assuming the buyer and seller go through the process without complications). A cash offer is one made by a financially capable buyer after visiting a house once or twice; cash offers make the buying and selling process quicker—everyone who has bought or sold a house knows this—since there are fewer barriers to overcome between the buyer and seller.
Understanding the Fast Home Sales Market
The current real estate market is seeing a huge surge in trends that favor fast sales—including low inventory, high demand, and competitive pricing—and, consequently, many homes are being scooped up by buyers within days of listing.
Out of the many benefits of selling quickly, a significant reduction in holding costs is the most apparent. From mortgage payments and property taxes to maintenance, the financial burdens associated with homeownership add up over time. If the home fails to sell, buyers may be missing out on other opportunities.
In my travels, selling fast also increases buyer interest significantly. Buyers who see new homes listed tend to flock to these listings and create a more “competitive” buying environment. As a result, prices will likely be closer to the market’s asking price.
The Role of Cash Offers in Fast Home Sales
A cash offer is an all-cash bid, meaning a homebuyer wants to purchase the property without a mortgage loan or other financing. These are buyers who are using 100% their own cash to buy the home outright—and with how home buying essentially works, it is almost always an investor.
This gives cash offers several advantages, the largest of which is speed. Most of the time, all-cash offers mean that the entire selling process can be done in a couple of days; in other instances, all-cash offers mean closing in a week from first contact.
These types of purchases make it attractive to sellers because there’s far less red tape, minimal paperwork, no appraisals and no waiting on lender approval. This is also an attractive option for buyers because they can get an amazing rental property or a BRRRR property. Especially when considering the alternative is to deal with a rookie, first-time homebuyer and all of the struggles that they bring to the table.
Strategies for Selling Your House Quickly Without Sacrificing Profit
It is so important to price your home competitively if you want to attract buyers right away and set yourself up for a successful sale. One way to come up with a price is by conducting a comparative market analysis (CMA) that checks out similar properties in your neighborhood, which will help you to get a feel for how the market is doing and how you should price your home in that context—you want to remain affordable, but you also want to make sure that the price you come up with is appropriate and matches the value of your home.
Even little improvements can go a long way in boosting the overall feel and theme of your home. Basic upgrades, like painting the home, landscaping the yard, or conducting minor repairs, may help to boost your home’s value and give off a good impression at a fairly low price. It could pay to switch out some of the light fixtures around your home, add backsplash to your kitchen area, switch out the numbers in your address, paint the mailbox, trim the bushes, and more. Each of the tiny little details will stick out to the buyer and will, hopefully, lead to a fairly instant sale of your home.
Use online listings to your advantage. Online listings, social media, and professional photography (including video footage) may significantly help to boost the chances of your home being bought. Much of the home buying process is done online. Buyers see attractive online listings and then reach out to the buyer for more information. Make sure you’re doing your part to present your home in an attractive light. Go through and clean out the home and then take some high-quality professional photos of the home to add to your sale.
Common Misconceptions About Fast Home Sales
Quick sales lead to lowball offers. This one really gets my goat as it simply isn’t true!
Indeed, it is quite possible for this to happen if you were to make a quick sale privately, but on auction day, quick offers can often lead to a bidding frenzy. Buyers can get carried away and will pay more than expected due to the excitement of the day.
Yes, there are often buyers who want to buy it pre-auction. In my experience, these buyers are typically motivated and will pay a premium for the convenience of buying the property quickly and not having to go to auction.
So I say, own it, love it, and let the quickest person win, but make sure it is presented well, and the price is right from the outset, as this will undoubtedly attract more “serious” buyers, and the competition will keep the price honest.
Cash buyers are black and white and won’t negotiate. Another myth that is perpetuated by”normal” real estate.
Again, this view is providing you with an ineffective way to think about your property. Cash buyers give you options, and just because they are often important to your future sale, it doesn’t mean you have to just accept their offer.
Cash buyers will often have their own reasons for buying your property, and it is essential to understand these things as this will give you a more decisive position in matters.
I would suggest that you put the price up, not down. Or, why not make a “counter” that forces your cash buyer to pay that bit more or try to negotiate other terms for the sale which will favor you more?
To help you with this, try to keep your finger on the pulse of what is happening in the market. I would suggest the use of a real estate solution (a very good agent) that can help you get the information required to keep the deal together, as doing this will enable you to make more informed decisions about what your options really are at the time of negotiation.
In the dog-eat-dog world of real estate, a common myth is that you can’t have your cake and eat it too. Translation: you can’t sell your house fast and make a lot of money. But, dare to dream! I say, yes you can! With some strategizing and a little bit of an adrenaline rush, you can up the “speed” part of the equation.
You can probably guess what the number one way to sell your house fast is. Say it with me: CASH. Buyers use the term “cash offer” loosely. This really just means that they’re looking for a quick close. They don’t need a bank to get approval for a mortgage. That means no loan approval process for you; no waiting on the buyer’s financing. This is an area where having a skilled listing agent will not only get you top dollar for your home, but can also help you accept cash offers.