There are many things to consider when accepting an offer from a buyer for your real estate. While cash is often king, it is important to learn what to know about the fast cash house buyers in Long Island, New York.
Build your knowledge base to be certain you are getting the best deal from a cash buyer.
What to Know About the Fast Cash House Buyers in Long Island New York?
Seeking Pricing Deals in Buyers Markets
Cash buyers are often real estate investors seeking to buy properties quickly and for pennies on the dollar. This is referred to as wholesale pricing and can be for as much as 30 percent or more below fair market value.
Whether the property is a fix and flip or just an investment they can get a deal on, expect cash buyers to come in below market value. This is especially true when the real estate market is favoring buyers where sellers may not have the number of potential deals.
There are times when cash offers in a seller’s market means a buyer wants to make himself the most attractive offer on the table. If a seller doesn’t need to be concerned with a loan becoming funded during escrow, they have confidence in the escrow contract closing.
Making the Sale Personal
Cash buyers are often savvy buyers who do a lot of due diligence on any property prior to making an offer. As a result, a cash buyer might know about any pending foreclosure or probate proceedings. Cash buyers often look to maximize negotiation power by making it personal.
The more information a cash buyer has, the more they can negotiate to a seller’s emotional state or need. Understanding this means sellers can better gauge what information to share with a potential cash buyer.
For example, if a buyer approaches you with a potential cash offer and happens to ask, “Why are you selling?”, it might better serve you as the seller to not explain any financial hardships or personal problems. Keeping it generic paints a less desperate picture and one that is more difficult for cash buyers to negotiate against.
Expectations of Escrow
Because a cash buyer has a guarantee of funding without problematic loan officers and escrow hiccups, there are expectations of controlling parts of the escrow of the closing process.
Cash buyers will want to work on their timelines. This includes everything from inspections and disclosures to closing dates. Cash buyers often want to get in and close the deal quickly. Unsuspecting sellers can be overwhelmed at the pace, particularly if they are not prepared to move quickly.
All Sales Are Final
This is something that works for the seller. Since most cash buyers are investors looking for deals, they often forgo many, if not all inspections. Even without inspections, the contract should be a final sale. This helps sellers that know there are problems and are fearful of a home getting through inspections or appraisal.
With cash buyers, the appraisal can also be waived. This means that even if the home sells above current market value, there isn’t a lender thwarting the deal by not funding a loan over an appraised value.
When considering any offer to buy your home, consider the entire offer plus what you need as a seller. Many cash offers can seem attractive but that isn’t to say that a financed deal might not be a better fit or a better financial deal. Speak with a realtor to review all offers before making a final decision.