Sellers: Beware of These Mistakes When You Sell Home For Cash

Sellers: Beware of These Mistakes When You Sell Home For Cash

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It is a debate whether you should sell home for cash or not. You can hire a real estate agency, or you can sell the home yourself. Each process has its benefits and disadvantages. The question is, how do you sell home for cash at the needed moment? This article is about avoiding crucial mistakes when you sell home for cash.

1. Neglecting Fair Market Value (FVM)

It can be a job loss, divorce, injury or debt that makes you sell the home for cash. You might be ready to accept a lower price for your home, or you may need more money to pay the loan.

In either case, your problem doesn’t predict the right price for your house. Only Fair Market Value can reveal the exact price for a home. What is Fair Market Value?

It is the price a seller will accept, and the buyer will pay, provided that no party suffers from the deal. You cannot win the deal if the house is priced higher than the FMV. Price is everything in the real estate market. Provide competitive price at the right time and your house will sell quickly.

2. Presenting YOUR Home Instead of Customer’s House

More often I see sellers making this mistake. Do not put your family pictures and possessions in the home. Remove your possessions. Let the buyers feel their new home. Let them visualize their new home with their family. Do not make them imagine “YOU” living in the home. It is a psychological factor that can give you a better home price.

3. Overspending on Home Improvement

If you are selling an old property, do not ignore necessary requirements. Spend some money on home improvement, but do not overspend. Buyers are more likely to remodel the home on their own. Spending thousands of dollars won’t help you. Let’s suppose your house is worth $500,000 and you spend $40,000 on house rehabbing. Now, your house is not worth $540,000. Mathematically, the remodeling price is worth half of it. Buyers won’t value your improvements because they plan to spend another $10,000 on house personalization.

4. Ignoring the Pre-Listing Appraisal

Competitive price is the key to selling your home for cash. When you are selling home for cash, you cannot wait for 3-9 months. The work must be done quickly, and pricing remains a crucial factor in getting sales.

If you are not sure about house price, a pre-listing appraisal can work for you. The market price can vary from the appraised value. Let’s say the appraisal suggests $480,000 for your home and the market value is about $525,000. What does that mean?

It means do not wait for another offer and sell the home quickly. In other cases, market value can be less than the appraised value. If the difference is a minor one, sell the home. Otherwise, wait for the right customer. The appraisal estimates can help you defend your home price. A pre-listing appraisal can give you a good estimate, but it is not the final word.

5. Sell Home For Cash, Scam Offers

Once you create a listing, you’ll receive offers like:

“I would like to pay in check. No need to see the property. If you are willing, I am ready to buy the home for cash. Thanks. “

This doesn’t have to be a scam message, but I see no reason why it shouldn’t be. The customer must insist on viewing the property, and they must try to negotiate the price. That’s the natural behavior.

6. Email Communication

Online marketing is good, but email communication can be a threat. Poorly written content or online transfer of legal documents can indicate chances of a fraud. Meet in person before you sell the home for cash. Ask for legal documents to prove their eligibility to buy the home. If the buyer can pay cash for the home, he should be able to show you a bank statement or a similar proof.

That’s all for this article. If you plan to sell home for cash in SF Bay area, contact us now. Our representative will get back to you shortly.



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