Every homeowner faces home selling once in a lifetime and wants to sell their property with the maximum possible profit. However, securing good cash for your property can be challenging without the right guidance.
Cash home buyers are your best shot when it comes to securing good cash offers. Regardless of your negotiation strategies, it is important to do some background research on your property’s value and market inclinations to make a fair and beneficial deal.
Tips For Securing Higher Cash Offers
Cash home buying is an approach to purchasing a property without any mortgage financing.
In simpler terms, the interested party has the needed sum in their bank accounts and transfers it to you once the deal closes. Despite the simplicity of the process, homeowners often end up selling at meager prices. Here are some winning tips to prevent that.
1. Make A Counteroffer
As a property seller, you should never accept the initial bids from buyers, even if you need fast cash for your property. Make a counteroffer instead. A counteroffer is higher than the seller’s bid but slightly lower than your original asking price.
Usually, buyers are flexible and appreciate a back-and-forth negotiation. If the buyers genuinely want your property, you can stick to your actual asking price. It will encourage them to return with a higher price offer, leading you to attain the hike you need. However, in some opinions, it is recommended that you offer your original asking price instead of a reduced figure.
2. Prepare Your Home
Although cash home buying liberates you from the repairing and decluttering phases involved in conventional home selling, it may be the missing piece of the puzzle for securing higher cash offers [1].
A revamped property will likely attract more buyers and give you the flexibility of naming your price as the property will be irresistible. A well-maintained home will net more buyers as they’ll be assured that they’ll be getting the worth of their money.
3. Asking For A Bid Resubmission
Depending on the geographical location of your abode, you may encounter a handsome number of buyers, and some of them may be offering lowball offers that won’t do justice to your home. But at the same time, you are looking to avoid buyer walk-away. In such cases, asking for a bid resubmission is better to keep them interested.
Observe that you are asking for a resubmission without countering the initial offer. This approach doesn’t lock you in negotiations; you can easily pick the higher bid. Demanding a refile makes the buyers realize that they have less time to offer a higher offer or the property will be sold off to the appealing offer, making them submit higher offers and fulfilling your goal of needing good cash for your property.
4. Create A Competitive Environment
Another way to elicit higher cash offers is to host an open house. Display the threshold price of the home and refuse to take up any offers until the open house commences [2]. This will create a competitive attitude among the buyers, and they will likely submit higher offers to catch your attention.
Once everyone submits their bids, you can skim the top bidders and ask for their best offers. Before engaging in negotiations with any buyer, ensure that you have conversed with all the potential buyers. Once you have your ideal pick, begin processing it further.
5. Make The Process Quick
The more time your house stays listed for sale, the less appealing it’ll become for the buyers. And the lesser offers you’ll attract. Therefore, doing all the background checks and cross-validations is important so that once the bidding process starts, you can close a deal and get cash within days.
Moreover, another complicated thing is revealing the other negotiations you’re having. Disclosing your current negotiations may allure potential buyers, but it can also scare them away [3]. The seller can entertain multiple offers simultaneously, but it should be in a way that is easier for the other potential buyers to understand so they can make efforts accordingly.
6. Make Your Counteroffer Time-Sensitive
Putting an expiration date on your counteroffer also works as an effective strategy to attract potential buyers. The limited time will allow them to offer their best bids to secure the property, increasing your likelihood of getting higher cash for your property.
However, there is a little thing to consider when putting a deadline on your counteroffer as well. You must not choose an interval that puts the potential buyers off. Consider making it slightly shorter than the default time in your state [2]. For instance, if your state law allows an expiration date of 4 days on counteroffers, make it 2 or 3 so the buyers can make things interesting with their best offers.
7. Pay Buyer’s Selling Costs
Paying the buyer’s selling costs is a standard practice when selling a home. These costs accumulate to roughly 3% of the house’s price [4] and assure the buyer, increasing the chances of the sale going through.
If your listing price is 200,000 and the buyer offers 190,000$ with 5000$ of closing costs, you can counteroffer a price between 195,000$ and 205,000$ to compensate for the closing costs and create a good vibe with the buyer.
The Endnote
Cash home buying is the best way to get instant cash for your property, but despite the non-conventional and straightforward nature of the process, many home buyers don’t get the desired sales. This happens because the property isn’t priced realistically or they did something wrong during the negotiations.
The above guide illustrates all the tips to secure handsome and instant from your property sale. If you are looking for a credible cash home-buying company that offers a fair price for your property, Tide Water Properties is one of the best solutions.
FAQs
- Is accepting a higher offer legal when you have already decided on one?
Once the seller has decided and communicated his consent about an offer, then it is illegal to back away. However, if the buyer disappears, you can avert to the other offers but not otherwise.
- Should I remove personal items during open houses?
Yes, depersonalizing helps as buyers can envision themselves in the home, increasing the likelihood of higher cash for your property.
- What is the ideal time to keep a home on the market for sale?
Market trends change every year; hence, hiring or consulting a real estate agent to learn about the current market inclinations is better. However, on average, houses in the United States sit on the market for 55 to 70 days. [5]
- Is staging my home necessary for a home cash sale?
No, it is not mandatory, but proper staging highlights your home’s best features, making it more attractive and potentially increasing offers.
External Links
[1]https://www.beycome.com/blog/the-dos-and-donts-of-negotiating-a-cash-offer-on-a-home/
[3]https://www.finance-monthly.com/2022/05/how-to-negotiate-with-cash-home-buyers/
[4]https://markspain.com/blog/5-negotiating-strategies-for-selling-a-home/
[5]https://www.zillow.com/learn/average-time-to-sell-a-house/
