Selling a home takes a lot of preparation and patience. However, not everyone can afford all the time, work, and money needed to close a perfect sale. Anyone can find themselves in a situation where they need to sell their house quickly.
Sometimes it’s because people are in trouble, sometimes they have an inherited distressed property they don’t want to bother with, and some houses are located in hot areas where there’s a great chance of receiving a good offer from the first buyer that comes along.
If your priority is to sell the home quickly, there is no reason it shouldn’t be a good sale. However, that takes a lot of precaution, and you can start by learning about the most common pitfalls of quick home sales.
Last Minute Price Reduction
Most for-cash home buying companies are legitimate. They will quickly estimate the value of your home and offer approximately 75% of its market value. If you agree, you can close the sale in a matter of days, and they will upgrade the house in order to flip it. That way you can avoid realtors, unnecessary showings, and save a lot of time and work.
Unfortunately, not all of these companies are honest. Some of them are using misleading marketing strategies designed to trick you into a bad deal. For example, some of these companies can suddenly lower the offered price on the closing day, putting you into an uncomfortable position where you either lose money or time.
Some of these shady quick home buying companies can surprise you with some unexpected fees when closing the sale. This is because they purposely make unclear contracts in order to hide these fees (which are usually ungrounded) and gaslight you into thinking that you didn’t pay good attention.
Long Tie-Ins to Bad Contracts
Average realtor’s contract lasts 8-12 weeks, so quick home buying companies should offer way shorter contracts. They usually advertise to close the sale within a week, so the contract shouldn’t be longer than that.
If the contract seems to be too long, it might be an indication that it’s a bad contract in itself. There were numerous cases where sellers waited for the closure for too long but meanwhile couldn’t sell to other higher bidders because of the strict contract that obligated them to wait. Those who decided to break the contract had to pay hefty penalties.
Making Repairs for Cash Buyers
The whole point of selling the house for quick cash is selling as it is. That means you shouldn’t make any repairs to your house hoping that you will receive a higher offer from a cash buyer. However, a lot of people make this mistake.
First of all, these companies won’t even inspect the house so thoroughly that they will notice minor breakage. Even if they do, it won’t matter much to them, because they are probably going to renovate the whole house in order to flip it.
It won’t matter to them that you invested your time, work, and money to make these repairs because their plan is to buy the house below the market value. In fact, they expect the property to be distressed, because that kind of owners usually approach them.
Upgrading the property is also pointless in this case because if you’re investing that much there’s no point selling the house below the market value.
Missing Better Offers
There are certain popular areas of the country with a large discrepancy in market demand, meaning there are too many buyers but not enough houses for all of them. This makes some owners sell to the first buyer that comes along because they don’t want to bother with showings, and their demanded price has been met.
However, a lot of people who have waited for just a few more days have received offers that top the market price. If you think about how much more money you can make by just handling a couple of more showings with just a little more patience, you might consider waiting a few more days.
If you want to sell as soon as you put your house on the market, it might be a good idea to advertise it before you put it on the market. That might attract some serious buyers and increase your chance of closing the deal within the first day.
Not Having a Move-out Plan
If you have decided to sell your home as fast as possible, you should probably have your moving plan prepared. A lot of people overlook this and find themselves in an uncomfortable situation as the sale reaches closure. At that point, the buyer will ask when can they move in, and if you don’t have a prepared answer, the deal might fall off.
If you can’t move out on short notice, the buyer might ask for a price reduction. The other option is to pay rent to the new owner or to someone else. Either way, you’re losing money unnecessarily.
In order to avoid such situations, you should make sure you have a place to go before you put your house on the market. If you’re buying another house, you should also look at pre-marketed homes and be prepared to place an offer for the one you want as soon as it’s out on the market.
Another thing you should do is start looking for moving companies before you put the house on the market and pre-book a moving crew for the dates you expect the house to be sold at.
Selling quickly is a legitimate and often rational choice, but it’s important to know why you’re doing it. If you’re just impatient, it would be a shame not to extract the full value of your home. On the other hand, a quick sale can turn out to be a better choice.
This is only your choice, but you should be careful not to make some very costly common mistakes mentioned in this article. A bad quick home buying company can cost you a lot of time and money, so you should learn to spot some of the major red flags and browse for a reputable company.