In real estate, cash home buyers are helpful contacts for folks who want to sell their properties quickly and easily, even if most people don’t know what cash home buyers do. That’s partial because cash home buyers come in several major types and oftentimes have different goals.
Today, let’s break down what cash home buyers do in detail so you feel comfortable selling your home for a cash offer.
Real Estate Investments
Many cash home buyers are real estate investors in one form or another. For example, they may make you an offer as a real estate investment firm or as individuals who simply wish to grow their portfolios for long-term financial success.
For example, an investor may wish to make you a cash offer for your home since they believe its value will skyrocket in five years. Then they’ll either sell the home or do something else depending on their objectives.
Other cash home buyers are retiring individuals who need somewhere to put their accumulated funds. Real estate investment is always a sound strategy, so some retirees may buy a home in cash to bring in a bit of passive income. Others may wish to purchase a new home outright without a mortgage payment so they have somewhere to enjoy their golden years.
Alternatively, cash home buyers might be house flippers. House flippers purchase homes in cash and at lowball values on purpose (usually by targeting homes that need a little bit of repair or renovation work to be truly profitable). Then they do the hard work of renovating or restoring the home. After it’s ready, they flip it and sell it for a profit.
Wealthy Homeowners Looking for Second (or Third!) Properties
Lastly, many cash home buyers are wealthy homeowners who already have one house they love… but they want a second or third, or even fourth home as a vacation property or for other reasons.
Are All Cash Buyers Legit?
No, but you can usually tell which type of cash home buyer is which by asking them a few questions or by looking at their initial offers.
For example, house flippers will usually offer some of the lowest cash offers around. They’re trying to maximize their profit margins, which means that they try to purchase houses for as little as possible so they can sell them for as much money as possible after renovations.
In contrast, wealthy homeowners on the prowl for a second or third property may make a cash offer, but they might also have other contingencies. For instance, they might want an inspection of the property or a full appraisal by a licensed professional. They plan to live there some or all of the time, so they want to make sure their investment is worthwhile.
Generally, it’s a good idea to go with local cash home buyers if you can. Locals are typically invested in the community, so any purchases they make could improve your city or neighborhood in the future.
Try not to accept cash offers for your house from foreign investors. Many foreign investors take valuable properties away from prospective homeowners to rent them instead.
What Cash Home Buyers Do: Contact KC Property Guys Today
If you’re looking to sell your Kansas City house quickly, KC Property Guys can help. We’re experienced local real estate investors and we pick up houses of all kinds, whether they’re newly inherited properties, properties in disrepair, or something else entirely. If you want to know how we can help you sell your home fast, contact us today!