How to Pick a Cash Home Buyer
September 11, 2019
San Diego cash home buyers are a dime a dozen. Any reputable and professional buyer can deliver on the basic advantages of a fast cash home sale: an easy, fast close with no fees and no commissions, with no requests for repairs. So how is a homeowner supposed to choose the right buyer, and does it even matter who the buyer is?
For starters, there is absolutely a difference between cash home buyers. Choosing the right one for your sale can easily mean the difference between a fast and easy close at the agreed upon price, or a choice between a canceled contract and a drastically reduced purchase price.
There are a few key points to check before choosing an investor buyer:
1. Do your research. Look up the buyer online if you haven’t already. Do they have an established and professional looking website? Do they have reviews or testimonials available? Do the reviews look legitimate and like they are from real clients? Do they have photos of the team and office? Are there names and faces to connect with the company?
2. Did the buyer really evaluate the property before making their offer? Any reputable cash home buyer that knows what they are doing will not lock themselves into a sale without having thorough knowledge of the property in question. Unfortunately, a common tactic used by less-trustworthy investors is to make a blind, too-good-to-be-true offer knowing full well that they are going to ask for a last second price reduction before closing. They know from experience that often a seller will simply accept the lower offer, rather than having to start over with a new buyer. In the worst cases, the seller may have no other option as they are now up against a foreclosure date or other deadline.
3. Did the buyer take the time to truly understand your needs? Every sale is different. Sometimes the best solution is a straightforward, fast cash close. Often there are other, better options available such as a seller-financed deal that allows a higher purchase price or even options to save a home and not be forced to sell. A reputable investor will take the time to talk through your specific situation and your goals, to determine how they can best help to ensure a win-win solution.
4. Is the buyer really even a buyer? Some cash home buyers are actually wholesalers. Ask the interested party directly; ‘do you plan an buying the property yourself or selling the contract to someone else?’. What a wholesaler does is get the property under a purchase contract, and then sell that contract to another buyer for a profit. There is nothing inherently wrong with this and it is perfectly legal, but this will typically mean a lower profit for the initial seller as the wholesaler has now become a middle man that also needs to get paid. For the best offer on your property, ensure you are actually speaking to the end-buyer and not a middle man.
CalHomeCo offers free consultations for any property problems or questions you may have. Even if you have already spoken with another buyer, we are happy to help review your paperwork to ensure everything looks fair, legal, and legitimate. We are in the business of building relationships first and foremost, and will always make time to meet with a homeowner.