Will I Get a Fair Price for My House in a Cash Sale?
What is fair in a real estate transaction is often in the eye of the beholder. A seller may overprice their house due to an inflated sense of its worth. A buyer may try to lowball a seller to save a few thousand dollars on the purchase. An agent may adjust the price of the house to meet their sales goals for the month.
These scenarios are common in a traditional home sale. But what about a cash sale? How do you, the seller, determine the asking price of your house? How does the seller determine what the house is worth? And most importantly, how do you come to an equitable agreement for both parties?
How to Set the Price of Your House
You’ll need to consider several factors and look at multiple resources to determine a selling price that you feel is fair. The best way to do this is to perform or schedule an appraisal. What’s in a home appraisal?
Once you complete a home appraisal, you’ll need to consider how much money it will cost to repair the house or get it ready for a sale. The appraisal and the selling costs should help you determine the ballpark range of the selling price.
There are some other ways you can set the asking price of your house.
- Find an online market value estimator.
- Ask a real estate agent or broker.
- Check your county’s property assessment office.
- Use the FHFA House Price Index calculator.
If you exhaust every possible free and paid resource, you should be able to come up with an asking price that reflects the true market value of your house.
How a House-Buying Company in Kansas City Determines The Amount of the Cash Offer
For some reason, many believe that cash offers are shrouded in mystery. However, a house-buying company typically follows the same approach to making a cash offer as regular buyers. They weigh the purchase price against the benefit of ownership - or in this case, the purchase price versus the resale price.
Whether it’s a buy and hold, fix and flix, or a rental house, the buyer views the house from an investment perspective. Therefore, the cost of resale and the possibility of resale are the two main issues.
- What is the current market value of the house?
- What will it cost to fix the house up?
- Will the market provide a healthy ROI at resale?
- Can the buyer set the rental price high enough to profit on the house each month?
- How long will it take to resell the house?
- Are there any liens or legal issues against the house?
A skilled house buyer uses a highly methodical approach to determining the cash offer amount. Part of that approach involves submitting a fair offer and creating a win-win for both the buyer and the seller.
Notes: Contrary to popular belief, house-buying companies do not try to take advantage of people in dire situations. While there are some bad apples in there, most buyers understand that lowballing sellers quickly create a bad reputation in the real estate market. While it is true that buyers want to profit, that doesn’t mean they resort to unethical practices to make a sale happen.
What Is a Fair Price for a House?
So the question is, what is considered a fair price for the house? In the simplest terms, it is the price you and the buyer both agree on. If you and the buyer have done your homework and have substantial reasons for setting the asking price and cash offer, you should be able to negotiate a price somewhere in between.
The cash buyer typically makes a cash offer at just below your home’s market value. That way, they can profit from the sale, and you don’t feel like you have been taken advantage of.
Get a Cash Offer for Your Missouri House
If you need to sell your house fast, contact Kansas City Cash Closings. Let us appraise your house and make a fair cash offer. Call 816-608-4688. to get a fast cash offer.