How to Sell Your Home: Cash vs. Conventional Home Sale

You can find the original article at https://www.713propertybuyer.com/

Selling a home is a big decision. Homeowners have two routes available to them, accept a cash buyer from a “we buy houses company” or go through with a conventional sale.

Your choice is dependent on your individual situation. A review of cash and conventional sales from the homeowner’s point of view assists in making this major decision.

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Selling Your Property To A “We Buy Houses” buyer:

  • Con: Expect to receive less than fair market value for the house. 60 to 80 percent of fair market value, minus possible repairs, can be expected from a cash buyer.
  • Pro: Cash buyers will pay from cash they have on hand. Sellers can ask for proof of the cash in the form of a bank statement or other document.
  • Pro: Cash purchases typically go through more quickly, from a few days to a few weeks, from start to end. Homeowners will shoulder fewer maintenance costs and the responsibilities of home ownership as the period until closing is shorter than with a conventional sale.
  • Pro: Appraisals and inspections are up to the buyer. They do not have to abide by requests from lenders as in a conventional sale.
  • Pro: Cash buyers often take the property in “as-is” condition, without additional investment on the part of a home buyer.

Take Advantage Of A Cash Offer Today.  We Buy Properties Regardless Of Condition.

  • Is your house vacant? In need of repairs? Is it just plain ugly? No problem! No job is too large!
  • Must sell your house quick? Need to move? Relocating? Job loss? We can buy it in a matter of DAYS!
  • Facing foreclosure? Behind on payments? No problem! Foreclosures are our specialty.
  • Considering bankruptcy? Owe liens? Title problem? We know creative ways to solve these problems.
  • No equity? Trouble selling? Divorce? No problem! We are here to buy your property.
  • Need to settle an estate sale? Death of a loved one? We will help put this behind you quickly.
  • Tired of being a landlord? Bad tenants? Eviction troubles? We will solve your problems.
  • Don’t want to move, but in a financial bind? We have rent-to-own and equity sharing programs that help you to stay!

 

Conventional Home Sale:

  • Pro: Homeowners can potentially receive fair market value or more for a home in move-in condition with high-end finishes in a desirable neighborhood. In most situations, final sale price can be or be near listing price.
  • Con: A conventional buyer will likely require financing and go through their own approval process with lenders. This requires a credit and work history as well as bank statements that satisfies basic lending requirements. A potential buyer may be interested in the home but need to repair their credit of perform other tasks before becoming eligible for a mortgage.
  • Con: The conventional buying process has more elements and without approval from banks during the loan process can force homeowners to seek another potential buyer since the original buyer can no longer proceed.
  • Con: Conventional home sales take longer than cash sales with additional hurdles to overcome. Homeowners are responsible for all maintenance costs and associated taxes until the deal is final.
  • Pro or con (depending on market): Conventional home sales generally include appraisals and inspections. Appraisals may be required from the lender with mortgages provided only for homes that are valued for a specific amount.
  • Pro or con (based on return): Potential home buyers may require homeowners to make improvements as part of a contingency to a sale. Homeowners may also need to perform repairs in order to increase their listing price.

Homeowners must choose an option that best suits their individual needs. Some homeowners have substantial equity in their home and want a full return on their investment.

They are willing and able to spend time and money in finding the home buyer that will pay close to their listing price. Other sellers may not have such luxuries and need to sell a home to a we buy houses company because of it’s current condition. Evaluate each option carefully and perform your own due diligence in either scenario.

Contact us today at 832-271-7473 to discuss the available options as they apply to your unique situation.

Houston Home Prices, Are They Slowing?

You can find the original article at https://www.713propertybuyer.com/

At the beginning of 2016, the housing market in Houston was on the rise, and the year was looking as if it would prove to be even more promising as the months went on. In fact, for the past several years, Houston has been either on par with or above the national average in regards to the price of an average home.

However, that did not turn out to be the case, as the market fell a startling 8.8 percent in the month of July of this year. Most of this decline can be attributed to one thing—the recent slump in gas prices.

A year and a half ago, the gas prices began dropping faster and faster.

Now, gas is a mere third of the price per barrel that it was before. While this has many smiling while filling up at the pump, it is starting to take its toll on the house market, especially in Houston.

The city is highly affected by the rise and fall of the oil and gas industry, and that is made incredibly evident in the housing market.

When the gas prices were on the rise all across the country, from around 2009 to 2014, Houston’s house market was positively booming. Houses were being built at an astoundingly rapid pace.

Home Prices Are Falling

Though Houston’s average home price has remained fairly even with the national average since then, home sales have plummeted since earlier in the summer.

This fall in the average price of homes is found to be most dramatic in the Exxon Mobil development in Houston that began housing residents in 2014 and 2015. These homes were built when oil prices were at an all-time high, but now have a difficult time selling.

What Are Home Sellers Doing?

To combat this rapid fall of prices, builders are now working to do everything in their power to grow the market, sell more houses, and raise property value. These efforts mostly show up in the way of incentives for buyers and real estate agents alike.

Many home buyers have either renegotiated the prices of their homes or decided to hold off on signing a contract to purchase a home. This is due in large part to the fall in oil prices.

Plenty of potential buyers remain interested in properties—but are much more likely to ask for price cuts of up to tens of thousands of dollars. This is particularly common with buyers that work in the oil industry. As the price of oil remains low, the possibility of layoff becomes more of a reality for those that rely on oil’s profits for a living.

For those looking to purchase a home in the Houston area, this might just be the best time, as prices are in the buyer’s favor. Discounts are being requested and granted left and right, and houses are bought for way under their previous market value.

Buyers can essentially make a reasonable offer and walk home as a new homeowner. While there is no doubt that this drop in oil prices and home value is potentially detrimental in the long run, homes in the Houston area are now more affordable and available than ever.

How To Pick A Reputable Company That Buys Houses In Houston

You can find the original article at http://www.713propertybuyer.com/

Homeowners who need to sell their properties quickly are turning more and more to real estate investors. These “We Buy Houses” businesses are booming mostly because of the uncertainty of the real estate market. With the promise of fast cash, sometimes within days, it is tempting to latch onto these offers. However, with adequate research, prospective sellers can avoid scams and find reputable home investment firms.

Better Business Bureau Accreditation

Accreditation through the Better Business Bureau (BBB) is an essential component of choosing a home investment company. This distinction means that the company is expected to operate with integrity in order to keep their accreditation. The BBB gives each company a rating based on their reliability and how well they interact with their existing customer base. Ratings are determined by years in business, customer complaints, transparency of business, and government sanctioned actions against business.

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Locally Owned and Operated In Houston

Prospective sellers should avoid using “We Buy Houses” companies that are based in another state or worse yet, another country. Sellers should have the opportunity to meet face to face with potential investors. Local companies will also have a high familiarity with local real estate markets and able to provide comparable home sale information.

Member of the Local Chamber of Commerce

A local chamber of commerce has similar goals as the BBB: protect consumers from companies with unsavory business practices. In a 2012 survey conducted by The Schapiro Group, two-thirds of customers reported that they found active members of a local chamber of commerce to be trustworthy in participating in good business practices. Local chambers of commerce screen their members in order to maintain a positive community image. Real estate investment companies must provide reputable care to their customers in order to be accepted into the organization.

Look For Online Reviews

Online reviews of a company will give sellers insight into whether they can trust the business before handing over their deeds. Although a single negative review shouldn’t deter sellers, red flags are raised if multiple reviewers have written negatively about the company. Sellers need to look at more than one source for reviews as well. Browse online review websites and social media platforms such as Yelp, 5 Star Reviews on Facebook, and Google Plus.

Ask For References

Before choosing a real estate investor, sellers need to ask the company for a list of references. The references can be past home sellers or the title company that the investor uses.  Years in business need to be taken into consideration as well. Receiving referrals from friends and family members who have used the “We Buy Houses” company can also steer customers to a reliable company.

Shop Around But Don’t Be Greedy

A reputable company will not be pushy over signing the dotted line. Although the agency may promise up and down that they are offering the best deal, sellers can’t be sure unless they compare offers from multiple vendors.

Investor Or Company Provides A Simple Contract

Although “We Buy Houses” negotiations are meant to be quick and painless, the information given to the seller over the phone after the home inspection isn’t always accurate. The contract may show completely different terms. Prospective home sellers need to have every aspect of the sale spelled out on paper before signing on the dotted line.

Consumers may turn to “We Buy Houses” companies for fast closings, but they should not skimp out on the research. There’s always a risk of fraud when dealing with cash real estate transactions. Avoid scams by reviewing all paperwork thoroughly before signing over the property.

Free, All Cash, No Obligation Offer For Houston Home Sellers