Many people aren’t familiar with handling cash offers when selling their house. That’s why in this video, I’ll explain five things you should know before considering a cash offer on your home.
Your home is worth what someone will pay you.
Cash offers will vary widely and none of them will be as much as the Zillow Zestimate. Let’s face it, the Zestimate is designed and promoted by Zillow, who makes a significant portion of their money selling leads to real estate agents. Higher-priced valuations are better for commissioned based sales people which trickles down to higher prices for leads and more profit for Zillow… which is very smart on their part. When using the Zestimate it’s important to realize that this is considered a “retail” price estimate. This estimate is not what you net in proceeds after a transaction.
Cash offers are just offers.
When receiving a cash offer virtually and within days without an actual showing of the property, be aware that the offer has many assumptions associated with it. If the home doesn’t live up to the assumptions then the offer will be adjusted for down
Timing is everything.
Cash offers do not have a shelf life. They are based on internal and external events that are calculated into the offer at that time. If you pass on the offer or delay the acceptance of the offer it can be and most likely will change.
The process of selling to an iBuyer may feel unnatural.
It’s ok to feel this way and many times it will cause suspicion of the process.
Buying and selling a home is painful and unnecessarily complex. Companies are sprouting up everywhere to make it easier and more convenient to transact and we are at the beginning to what will soon be the norm in real estate. So consider all options when selling your home as there are many.
What’s the final number.
What you receive after the transaction closes must be crystal clear. Commissions and fees will need to be broken out and visible.