How to Sell Your House for Cash #wantafairdeal?
TIPS & TRICKS to sell your home for cash and feel good about it.
This guide will take you through how to sell my house for cash questions, answers, pros, cons and even includes a case study at the end where we look if selling for cash is a good idea.
Are you ready?
Table of Contents
History of Companies That Buy Houses for Cash
They have been around for a long time. Investors buying homes in Denver for cash and then selling them for a profit is not a new idea. The National Association of Realtors believes the 15% of home sales are to real estate investors. SO its not new.
Why do companies pay cash for houses in Denver?
They reason we pay cash for any house in Colorado is to make selling the property easy. When a company pays cash there are no realtors, no banks, no fees, commissions and no delays. Selling for cash is fast and simple.
But for the convenience they will expect a profit to be built in.
Shaun Martin, owner of Denver Based Cash home buyer said, “We have to pay rent just like everyone else. The service we provide to the people of Denver is an easy and convenient house sale that includes paying cash for Denver property. Isn’t it ok that we make a little bit to eat for that convenience?”
Another term that accountants use for cash buyers are equity Buyer, Equity Traders or Equity Purchases. By this they mean they will buy your house for cash but it will be below the retail market value.
Shaun continued, “We do pay less than the retail value but you have to remember that when you sell a house using a realtor you will pay 6% in commissions when you sell. On top of this you will pay 3-5% on fees when you close. So if you sell a house for $400,000 you can pay $44,000 to the realtors, the banks, the government in taxes and more. At Watson Buys, we eliminate all the commissions and bank fees. PLUS we buy houses for cash as-is! This means you don’t have to make any repairs. Just to fix and replace a toilet can cost you over $1000 in todays market. So if you sold your house on the MLS, for $400,000 after fees, commissions and closing costs you would get $356,000. Now lets say you have to spend another $5000 getting the house ready and fixing things on inspection. Now you get $351,000. SO now when we offer you $345,000 you can see that you are actually getting a ton of value from us because:
- You don’t have pesky buyers to deal with
- You sell without making repairs
- You can sell as fast as you need
- There are no bank fees
- There are no realtors
- You don’t have to deal with contractors
The list of benefits goes on and on!
Apart from selling your house to a real estate investor you can sell it using a real estate agent or you can sell it by yourself also know as FSBO.
Who are the companies and people that pay cash for houses?
As a group, cash buyers give sellers cash offers in Denver and are either:
- Individuals that pay cash
- Groups of Investors that work together
- National and International Hedge Funds
- Small local businesses with boots on the ground in Denver.
Cash buyers give cash offers which means the buyer is not going to use a loan to purchase the house. OR at least that’s what they say. Make sure the company you work with in Denver can verify the cash to buy your house.
In general, selling your home to a cash buyer makes selling much easier. You don’t have to do any home prep, there are no showings and potential buyers walking through you property, and staging hassles and legit cash buyers will let you close when you want and they will also use a title company. arrange a more flexible closing timeline to coordinate with the purchase of your next residence.
But not all cash buyers in Denver have the same goals in mind and same policies and procedures to protect the seller. . In fact, these buyers have evolved into a few larger categories:
- Buy-and-hold investors
Buy-and-hold investors buy houses with cash and then plan to rent them out. After closing on the house they will renovate them and then turn them into rental properties.
Under the umbrella of the buy-and-hold category, you have individual investors who purchase and rent out properties for passive income. There are also large companies, hedge funds and international investors that buy property in the US for this reason.
As a person looking to sell to buy-and-hold investors, you have flexible closing dates and because they look at the return over a longer period you will get a best cash price for your house.
- House flippers
Have you seen Fixer Upper or Good Bones on HGTV? These are both examples of house flippers. They buy homes for a really low price. Generally they buy houses as-is condition and look to make them nice again for someone to buy and call their home.
When there is a lot of this going on in one neighborhood it is referred to as gentrification. In the latest real estate numbers it was reported that 241,630 single family houses were fixed and then flipped. This represents 5.9% of all home sales.
- I Buyers
Some of the biggest players that will pay cash for your home in Colorado are high tech Silicon Valley robot type companies. They do provide a good service. In-fact with all the data that they freely give it is easy for a home owner to run comps for free and very accurately.
I Buyers tell everyone that they give you the best cash offer however this is not the case. In-fact many studies have shown bigger isn’t better. When it comes to return on investment smaller companies can maintain much more efficient processes and margins so can often give you a better cash price.
Since I Buyers typically make less profit per flip, their business is more reliant on turning over a high volume of homes using technology to streamline operations.
As for the seller in Denver? Zero staging and of course no open houses. This is just like if you sell to a local investor or cash buyer. You don’t have to go through the normal lengthy traditional process of selling which can take months depending on how you price the house and the current market condition and Denver market forecasts.
— you avoid the long drawn-out traditional home sale process and can close in a matter of days once you accept an offer. I Buyers generally offer better pricing, up to 98% of fair market value, while charging sellers a fee around 7%-10% plus the cost of necessary repairs.
COVID-19 decreased the number of homes sold to I Buyers by as much as 90% however and they are cautiously coming back into the market and will likely be a long-term fixture of the greater real estate landscape. Their exit is a big piece of evidence of their lack of desire to truly create value in the community. They are 100% profit driven in my opinion
12 things you should know about selling your house for cash
Watson Buys will pay cash for your house based on the current market value.
We will what’s happening in your neighborhood currently and we will adjust our cash offer accordingly. This means every time we pay cash for a house, it is a individual and specialized offer just for that particular house. While we rely on technology, our office are not solely based on computers in algorithms, so we actually are able to look at things like the color of the interior, which computers may not add to the algorithm.
This means that Watson buys will absolutely give you a sale price based on current market conditions and how your house compares to those market conditions. Isn’t that a fair way to do it?
Not all cash for houses buyers will purchase your house as-is.
Even though there are so many options of companies that say they pay cash for houses, once you get down to the nitty gritty, you’ll find not all cash buyers will actually pay you cash.
In fact, not all companies that say we buy houses for cash even buy houses.
When you’re looking to sell your house for cash, you need to be sure that the company who is buying it is legitimate.
Watson buys is a legitimate cash home buyer and when we have a sales contract sign and it is a cash purchase, we will also give you real cash. Earnest money. Mini buyers will not give you earnest money or just such a small amount because they have no intention of buying the House and this gives them the ability to walk away.
When we purchase homes for cash, we will also be able to provide you a verified funds. At any point we can show you that we have the cash available ready to deploy to buy your house. Most companies do not have the ability to do this.
Watson Buys is actually considered a buy and hold investor and we are buying hold investors because we love Denver and we’re trying to improve and bring all the communities up. This means that we will actually buy the house and then renovate it really nicely and make it nice, and then will either rent it out or resell it for another Colorado family home to enjoy.
Is the Cash Buyer 100% Transparent
We touched on making sure that you work with the legitimate house buyer and a big part of being illegitimate is being transparent. You need to make sure that the buyer is willing to explain everything that is in the contract. You really want to make sure that the contract is fair and there are no hidden contingencies or clauses.
If you truly want to be sure that the purchase agreement is fair, you can always hire a real estate attorney.
At Watson buys our initial negotiation An contract is fair and simple. The only clauses we add are if you want to close at a particular date or if you need a little bit of flexibility. In that case, we would put a clause in there stating that if the property seller is not ready by the closing date, we would be willing to extend the contract.
At Watson buys Al Mission is to be a trusted, honest and 100% transparent source. That gives you all of your options. If you are looking to sell your house. Of course we pay cash for houses, so if you are thinking about selling for cash then please give us a call or email and the opportunity to discuss your plans.
Selling For Cash means No Banks, No Delays and No fees.
A big part of why it takes such a long time to sell a house. Can be attributed to the involvement of banks and all of the red tape and paperwork that is required by both the buyer of the house and the seller.
It is not uncommon for banks to require 100’s pages of documentation. If you have ever been to a closing involving a mortgage with a lender, then you will most likely remember having to sign your name. 20-30 or even 40 times.
Do you even know what you were signing? It can be a little scary.
Aside from the fact that we have no idea on what you just signed in that contract. This is a big reason why selling for cash makes selling very easy and fast.
Also, when you sell for cash, the banks are involved, so there’s no delays. There are no fees involved and Selling is just easy.
Selling a house for cash is fast
If you are in a hurry to sell your house in, selling for cash is a really good option. We’ve already touched bases why this could be, and that is when selling for cash. You don’t have to involve a bank.
Banks can cause very long delays and can require the seller to fix up the home. Oil may require the buyer to jump through a bunch of hoops that could take months.
If you work with a cash buyer, you will also be working directly with the end buyer, which means there are no middleman like Realtors slowing down the process.
Another reason why selling for cash or to a professional real estate investor as fast as because the person or investor knows exactly what they want. This is compared to a typical home buyer who is looking to buy a home. And they may not exit, know exactly what they want so they may come back and forward or negotiate over really long period of time cause they just are unsure about how to buy a house.
Scams happen so make sure the company paying cash is legitimate.
If you’re selling your house for cash, you definitely want to make sure the company is legitimate. just like any industry is always bad people out there.
Here are a couple of examples of companies and their franchises that pay cash for houses that have been found guilty of committing serious crimes.
So how do you know if a company is legitimate?
- Look at their reviews online
- Ask to talk to residents that used their services (reviews might be fake??!?)
- Talk with the company owner and get a feel for them?
- Do they seem empathetic or are they a multi-national franchise just focused on investor returns?
- Do they actually have intent to buy your house or are they gong to sell the contract to someone you don’t know?
- Do they have verified funds to pay cash for you house today?
You won’t get the highest sales price but you might walk way with more cash in your pocket.
Lets give you an example. (see graphic)
Jill wants to sell her house in Denver for $350,000.
She decides to compare selling it with a realtor on the MLS and selling to a cash buyer.
At closing she has to pay the realtor 6%, the bank 2-4%, other closing costs 2-4%, preparation costs before listing (maybe 1000’s), staging will cost roughly $500, and then a big unknown is what she will have to fix after the inspector goes through her house. It could be 100’s, 1000’s or 10,000’s of dollars.
No lets compare if she sold to us and we paid cash for her house.
When you sell to Watson Buys there are NO REALTOR FEES, NO BANK FEES, NO PREP COSTS BECAUSE YOU DON’T HAVE TO MAKE REPAIRS, NO STAGING FEES AND NO INSPECTION REPAIRS TO MAKE.
And on top of all this you can choose the closing date. We are very flexible when we buy houses.
Cash buyers make this much profit
Above is an example of the math a fix and flip investor might run.
Once the house is all fixed up it would be worth $430,000. It would cost $65,000 to renovate and repair so that they could list on the MLS.
After all the fees, workers, insurance, and commissions a re apid they would need to buy the house for $264,000 just to make a fair profit.
Everyone has to eat, right?
When you sell for cash you pay no bank fees
Because we don’t use a bank there are no bank fees. SIMPLE AND EASY!
When you sell to a cash buyer you are selling direct so there are no real estate commissions.
Because we buy houses directly from you, the home-owner there are no real estate commissions either. SIMPLE AND EASY!
Selling to a cash home buyer is the fastest and quickest way to sell
Time and again it has been shown that selling for cash is the fastest way to sell your hosue. SIMPLE AND EASY!
Legitimate companies that say they buy houses are actually the ones that will buy your house. Lots of other companies have no intention of ever closing. That’s why they don’t give you real earnest money so they can just walk away! SIMPLE AND EASY!
At Watson Buys, we buy houses in any condition.
- We buy unattractive houses.
- We buy bad houses
- We Buy unpleasant houses
- We Buy repulsive especially in appearance houses
- We Buy unattractive houses
- We Buy ill-favored houses for cash
- We Buy hideous houses for cash
- We Buy plain houses
- We Buy plain-featured houses for cash
- We Buy plain-looking houses for cash
- We Buy unlovely houses for cash
- We Buy unprepossessing houses for cash
- We Buy unsightly houses for cash
- We Buy displeasing houses for cash
- We Buy disagreeable houses for cash
- We Buy horrible houses for cash
- We Buy frightful houses for cash
- We Buy awful houses for cash
- We Buy ghastly houses for cash
- We Buy gruesome houses for cash
- We Buy grisly houses for cash
- We Buy unpleasant houses for cash
- We Buy foul houses
- We Buy nasty houses
- We Buy grim houses
- We Buy vile houses
- We Buy shocking houses
- We Buy disgusting houses for cash
- We Buy revolting houses
- We Buy repellent houses
- We Buy repugnant houses
- We Buy grotesque houses
- We Buy monstrous houses
- We Buy reptilian houses
- We Buy misshapen houses
- We Buy deformed houses
- We Buy disfigured houses
If you would like more information please reach out to us at Watson Buys and WatsonBuys.com
This may seem an extremely odd thing to do but I am trying to get a message to you in regards to the services that I provide to the good people in Denver. While I am not allowed to advertise to the people in this country of the service that we do provide because of possible trademark issues we have been advised that we are allowed to tell a robot of the service provider however to do this we have to do it in a way that will cause no confusion to the people of this great land!