When you are seeking to sell your property, you may be limiting your approach to appealing to just one type of person. In reality, there are different kinds of house buyers and targeting the right fit can help you go from ‘For Sale’ to completion in a more streamlined, efficient way.
That said, let’s look at the types of buyers who may be looking for a house just like yours.
Kinds of House Buyers
These house buyers want a home. They want to move in, make this space their own, raise a family, make friends, settle into a community and otherwise put down roots. They may be looking for an ideal starter home, a larger property for a growing family, a smaller property for ‘empty nesters’ and so on. Regardless, while a house is still an investment, it means much more than that to these buyers.
- Fix and Flip
Then there are buyers who do not have any sort of attachment to the property. They may have seen some great potential and have the resources (or the experience and time) necessary to make repairs, improvements and upgrades to the house. Their goal is to get it into market-ready condition so it appeals to other buyers – particularly those looking for a home. The hope is that they can realise a profit on their investment. These types of buyers typically ‘fix and flip’ several times.
It may be that the house itself is not a great investment but the land on which it sits is. It could be in an emerging, up and coming neighbourhood. It could be converted into a commercial property with ease. It could be redeveloped in order to maximise their profitability. In any case, their goal is similar to the fix and flip folks. They want to go in, make the changes necessary and either sell or lease the property for a gain.
If a buyer has sufficient resources, they may buy a property and hold it. Maybe they wait on development or renovations until they have a better sense of how to capitalise on its potential. In the future, they may sell, redevelop or lease the property, depending on which avenue will help them achieve their goals.
A house can be converted into units available to let, and this can be a great way for investors to generate a profit on their purchase. They may need to rehab the house, depending on its condition, and do some remodeling work in order to create separate, distinct living spaces. From there, they can either sell to a party that will let the units or hold onto it themselves.
Cash House Buyers
Cash buyers can be any of the above. More typically, though, they are investors who will make repairs and renovations in order to increase the value of a property so they can sell it, lease it, let it or otherwise earn income from it.
Working with a cash buyer can offer several key advantages for you as a seller. For one, you do not have to rely on attracting a traditional buyer – that is, a buyer who must secure a mortgage. There is nothing more frustrating than a deal that falls apart because the buyer no longer qualifies for their loan or when the lender refuses to sign off on funding for a particular property (such as one that is in some state of disrepair).
Another benefit is that you can work through a sale much faster with a cash buyer. When you choose the right one, they can handle all of the details, arrange for valuations, instruct solicitors, complete paperwork – and deposit your money into your bank account within days. A conventional sale can take four to six months, if you are lucky, if financing goes through, if offers are not rescinded… There are too many ifs with this process, any one of which can derail your sale.
Cash house buyers may be the key to selling your property quickly and with minimal stress and aggravation. Is this the right choice for you? Do your homework, weigh the pros and cons and make a decision that works for you and moves you closer to your goals.