If you are considering selling your home, you have probably seen hundreds of cash investor signs in your neighborhood. Many of us simply ignore these signs; we drive by them without a second glance. We ignore these signs because we think that they are probably too good to be true. But many of the assumptions made about cash buyers, are misinformed, or just plain wrong! Let’s go over the “3 myths about selling your home for cash”.
Myth 1: Cash investors are scam artists
Most cash investors are just legitimate investors who are looking to invest in real estate. Just like any industry there are going to be some bad apples out there and unfortunately, it is those few bad apples that have given all cash investors a bad name.
If you plan on using a cash investor always do your homework, don’t just call the first number on a yard sign that you see. Look into the cash investor’s business, get a list of referrals and make sure you call them. Find out whether or not previous customers were satisfied with their dealings with them, if not find out why.
Myth 2: Cash offers are too good to be true
When you see signs advertising the fact that people pay cash for your home, you can’t help but be skeptical. Even if you are not thinking scam artists, you are thinking if it sounds too good to be true it probably is. Most cash investors’ offers are legitimate. One way to decide if the offer is too good to be true is based on the amount of cash they are offering you for your home. Most cash investors are not going to offer you market value, so if they do, beware. Cash investors have a formula they use to determine what they are willing to offer.
Myth 3: Cash investors only buy homes in perfect condition
One of the great things about cash investors is that they will purchase your house no matter what kind of condition it is in. what this means for you is that you don’t have to worry about going out and making any repairs, which can save you money, but their cash offer may depend on the overall condition of your home.
As we mentioned previously cash investors use a formula to determine how much they are willing to pay for your home, the cost of repairs are taken into consideration with the formula. What this means for you is the more repairs your home needs or the more expensive the repairs, the lower your offer will be.