All Cash Sales Happen More Often than You Realize
When selling a house in any market, cash is almost always king. All sellers would love to imagine receiving a full asking price offer, with all cash, absolutely no contingencies, no inspections, no appraisals and a closing in less than 7 days. What’s not to like? You might call that nervana. I call that a miracle, and yet it happens somewhere everyday, but not the way that you would think.
According to RealtyTrac , in 2018 it is estimated that cash buyers made up 40 percent of the residential real estate market. Data from Goldman Sachs put the numbers as high as 57 percent in other parts of the country. Whatever the number, it is clear that cash sales have been a much bigger factor in the current and ongoing housing recovery than in previous housing markets and recessions. The trend is certainly nationwide and the numbers are greater in some regions than others. Since the bubble burst in 2008 the trend has helped to hasten recovery. So, is that trend a good thing or a bad thing for housing long term?
I guess it depends on what side of the housing market you are on because, as much as all cash sales happen every day and they occur in every neighborhood, it is still NOT what most sellers experience. It is worth discussing, because if most sellers understood the model and why they dont see those offers, they might be a lot more receptive and really jump at the chance, but it would require that they leave their real estate agent at home.
By far, the illusive all cash sale at full asking price, with no contingencies is very rare. Like other offers, even those with financing, all cash offers usually have other conditions or contingencies, that buyers like to use as leverage to soften the seller for concessions. Cash buyers know that their offers are generally the best and try to find that sweet spot for the seller to just say yes and eliminate what the seller generally sees as the uncertainty other offers with financing potentially falling apart.
So, if they are fairly common then why is it that all cash offers are almost non existent for properties that are listed with real estate agents?
The answer is a pretty simple one. Cash home buyers are pretty smart and generally will look for properties that are considered off market. Personally I rarely shop for real estate listed on the multiple listing service because they are inflated with cost I am not interested in paying. Real Estate agents are notorious for inflating initial asking prices as a means to justify their existence and remember the seller pays for both of the commissions, not the buyers.
Cash home buyers in Stockton are known for creating opportunities by finding properties that have NOT had a lot of reinvestment and by being creative in leveraging the use of their money. We understand that having a real estate agent adds a layer of cost (4% to 6% on average) that the Seller pays. For example, for a $500,000 house that is $25,000 to $30,000 and that is a lot of equity that sellers are just handing over. Let me ask you a question. If you could sell your house right now and take all of the uncertainty away, like the cost to fix and update and the sales commission would you do that? Would you accept an all cash offer at fair market value, minus the repairs and a little holding cost with no contingencies, no banks and no inspections? Your real estate agent would advise against that. Why is that?
With cash sales competing for so many houses, real estate agents are fighting to hold on to their share of the residential real estate market at all cost. Up and until about 10 years ago, they had the monopoly on residential real estate sales because they owned the data that comprised the “multiple listing service”. The truth is that back then if your house was not listed on the MLS it was invisible to the world. Imagine putting a For Sale Sign inside your garage and shutting the door.
So, with that said, it is understandable, that for the rest of the universe, there is a certain trepidation that occurs when the listing agreement is signed and the for sale sign gets planted in the front yard. At that moment, the anxiety becomes real, because you know that it is now show time. Your house is on center stage, the open houses begin, and people are paraded through with your privacy a little in question. Inspections and appraisals are just one aspect of the poking and prodding to find out what makes your house tick. So, for the average seller, an all cash offer, while desirable, is probably not in the cards because of the overall cost structure is prohibitive to the BUYER.
For that reason, all cash sales are generally not in the public view. They typically occur in “off market transactions” where the typical players are the seller, a cash home buyer , the title company or an attorney.
Does a Sellers or Buyers Market Dictate the Offers You’ll See:
The simple answer is yes but read on to find out how that really translates. If you have done any research at all, you know that we are in the middle of a sellers market. What that simply means that there are less houses on the market than buyers and that means that sellers have the upper hand. It does not mean that cash buyers are lurking around every corner waiting for a house to hit the market so they can swoop in and pay all cash at full tilt and edge the financed buyers out. At least not in Sacramento, Stockton or Modesto, yet.
What it means is that from the supply side, there are less houses for sale then the actual buyers looking. Some sellers mistakenly believe that it means that no matter what the condition of their house, its location or its age, that they are going to get a top of market offer and a fast sale. Unfortunately, It does not. Remember if supply and demand were the only drivers that may be true, but 98% of buyers dont have the cash to buy a house outright and so they must rely on financing to buy houses and those rules are very stringent and act as another buffer restricting home sales further. Notice to sellers… Not all buyers qualify.
The Condition of Your House Really Determines Who Buys It!
Regardless of the market, your house, still needs to compete with all of the other houses, so before you start thinking that this is going to be a piece of cake to sell it, know that one way or the other your house will only get an offer if it is competitively priced and the buyers can see the value. Moreover, that offer is going to be scrutinized more closely, with invasive inspections, appraisals and ultimately requests for repairs or buyer concessions. Regardless, you as the seller are going to have to decide what offers are really in your best interest. It is really that simple.
For the sake of the discussion, let’s make things a bit more complex and turn up the heat on potential buyers. Let’s say that your house is less than perfect and needs a lot of work, has suffered through years of deferred maintenance and is otherwise in need of many repairs. How does that impact the sale and the offers that you will receive? How does that impact the inspections, bank appraisals and repairs that will need to be made? When selling a house conventionally there are obstacles at each and every step until each contingency is met or erased. Every step along the way there is a potential for the sale to fall apart and as the seller you get to start over.
What it really means is that selling a home in any economy is hard work. No matter what you do or no matter how you address the challenges that your house may have, everything is a tradeoff and no matter what you do, the external forces tend to fly right into the face of your goals. It is OK. What you need to do is develop a plan and work it relentlessly. Certainly there will be roadblocks and impediments, but if you pursue your goals and approach every aspect of selling your house with a concerted effort you will find your way and get through this.
Who Can Buy My Home With Cash in Sacramento?
My name is Peter Westbrook and I am a real estate investor in Sacramento, Stockton and Modesto California. As a cash home buyer I can assure you that if you are confused, you are not alone. Sellers at every level in every market have been tackling the same issues as you since the beginning of time. No one wants to make a mistake and yet sometimes the only mistake may be holding on to a house until it no longer remains an asset. It happens, and I have been on both ends of that transaction. What I have learned over the past 10 years with hundreds of houses and families, is that the answers are usually right in front of us. We just have to be willing to listen.
I have also learned that too much input is both good and bad. I know deep down that everyone just wants to be helpful. I know that It is easy to get distracted and sometimes we just give up on that one thing that is so close that we cannot see it, but in reality it is just one step away. Unlike so many other decisions in life, your house represents your families space, memories and security and although everyone has free advice, they are not the ones that are going to pay the price if you get this one wrong. I understand the trepidation and the anxiety. I understand the fear.
In today’s article I want to expose at the root level why we spend so much time grappling with the question, “who will buy my home for cash and what do I need to do to find them. I want an all cash offer in Sacramento” Well, that is a pretty easy ! There are several options that you can explore when putting your home up for fast sale.
Here are three most common options worth considering; however, if you need to sell your home fast for quick cash, then be sure to call Westbrook REI first at (209)481-7780. We have cash in the bank, and are able to buy any home, anywhere in Sacramento, Stockton or Modesto.
#1 Sell your home fast for cash to a local Investor
If you are determined to sell my house fast in Sacramento, then all you need to do is find a cash home buyer that is ready to meet your terms. There is no mystical or secret language and there is certainly not any magic formula. Every investor in the area has their own way to assess a house, establish a cost basis and Fair Market Value, formulate a list of repairs and/or updates needed and come up with an offer. After 10 years I have to believe that the serious cash home buyers dont deviate too much from their plan and as a result deal with each potential house and seller on a case by case basis.
Like I said there is no mystery regarding the formula that is used. Cash home buyers are real estate investors that evaluate houses based on a number of factors including potential along with what may be its advantages and or disadvantages. When We buy houses in Sacramento and surrounding areas in California when sellers need to sell fast. If you’re looking to get the full market retail value on your home… and you have time to wait for it to sell (3-6 months) look at option number two. But if you need to sell your house fast and are willing to sell it less than the full retail value that you may be able to get by listing it w/ an agent and waiting until it’s sold… we’d like to make you a fast-fair offer on your house today... or call us directly at (209)481-7780.
#2 Sell your home fast for cash with a Real Estate Agent
I guess it is possible… and anything can happen, but It is NOT very likely. Like I said earlier, real estate agents are not conducive for doing anything fast and they add a layer of cost that is difficult to overcome. Sure real estate agents have called me and yes I have bought a few houses from them, but to be honest, they are just another layer of cost that the SELLER pays and if you have read this article, then why would you front load your cost with upwards of 4 to 6% in additional cost? Why would can sell your home for cash using a real estate agent. Why would you call a real estate agent to find a Sacramento cash home buyer.
It doesn’t make sense to me to pay a real estate agent to do a google search for cash home buyers and vet the ones that will make a cash offer? But, I’ve seen it happen and I am still scratching my head.
If you have a bit more time and can wait for the right retail buyer to come along, great. If you want to gamble on making repairs and updates to chase the top of market, bravo because listing your Sacramento house with a real estate agent is NOT a great option for attracting fast cash, especially if the house needs a lot of updates, repairs or has a lot of other problems.
A real estate agent is just one option for getting your property across to cash house buyers… It is not all that likely that you are going to sell your house quickly for cash through a real estate agent.
If you are determined, it begins by finding the right agent. Start by asking at least five or six Sacramento real estate agents to assess your home and show you some comparable homes that they have recently sold for cash. The agent you hire should list your home in as many property websites as possible in order to broaden the market reach and of course put it on the local Sacramento area MLS (multiple listing service).
It is also important that they create a marketing plan to advertise your home in the local publications buyers tend to look at (newspapers, etc.). To help speed up the process, consider offering the agent an attractive incentive if they manage to sell the house within a specified time frame. With this option you will of course pay the real estate agent commissions… so be prepared to figure that into your overall costs.
#3 Sell your home fast for cash with a For Sale By Owner Listing
According to the data, 90 percent of all property searches now begin online… that means that buyers begin shopping long before they contact a real estate agent and long before they have a banks approval. From a big picture perspective it is better that buyers are more informed and better equipped to deal with the purchase of a house at all levels. Buyers have the same access to information today that sellers do and that is healthy for everyone concerned.
Sellers know that houses take time to sell and that there are a certain number of days on the market that are an average before houses typically will sell. Some take less time and others take longer. It also means that at every price point, both buyers and sellers face different pressures and challenges from not only the houses available but from the inspections, the appraisals and the lenders.
In today’s world there is no such thing as a “sure thing” and that is why cash has become king. It eliminates the uncertainty of a sale. if you have time to wait to get your house sold… and the time to show potential buyers your house as they come calling… selling your Sacramento house “For Sale By Owner” may be a good fit.
There are tons of web based real estate agents that you can approach to list your home on their websites and some agents will let you purchase a listing on the MLS for $300-$500+. Additionally, you can list your home on websites like Craigslist as well as online property directories in your area. To attract potential buyers, be sure to accompany your listing with clear professional pictures of your home.
So, when you ask Who Can Buy my Home with Cash in Sacramento?
The answer is really is a matter of perspective, because at the end of the day, it’s up to you what offers that you will accept. It is you that pays for every month the house just sits. Yo pay any commissions and it’s you that pays for any repairs. What you need to decide is how fast you need to sell your Sacramento house. If you have 3-6 months, and want to gamble on the repairs and updates and can pay the real estate agent commissions… list your house with an agent.
But if you don’t have enough wiggle room within the equity of your house to pay for all of that plus your agents commissions… or you can’t wait the time it may take to sell your house conventionally to the right buyer… selling for cash to a local real estate investor like Westbrook REI may be a great option to explore. Let’s face it… all you need is to know your options when it comes to selling a house for cash. Click here to learn more more about our service. Better still, fill the form below for a fast fair all cash offer for your home.