When Selling Your House For Cash, What Are Your Options?
Selling your house for cash to a cash buyer in the Minneapolis and St. Paul area means you can have the cash quicker than selling your house to someone who needs a mortgage. If you need to get your house sold fast, this may be the best route. If your house needs many repairs, opting for an as-is cash sale may also be your best bet. This way, an inspection and contingencies can’t stall the sale. Of course, there are pros and cons to choosing a cash real estate sale. Your buyer pool may be limited, so it may be difficult to find a legitimate buyer. You also may get less money since investors are always looking to maximize their profits. For some, a cash sale may the best option, while others will fare better by listing their home with a real estate agent and selling it traditionally. Learn more about selling your Minneapolis home for cash to decide if it’s the best path for you.
Receive a Real Cash Offer in Less than 48 Hours
At Home Offer Guys, we take the time to explain how our cash offer process works. Our goal is to provide a fair market cash offer that makes sense. We base our cash offer on a true, MLS-generated market valuation.
Who Are Your Typical Cash Buyers In MN?
What is a typical cash buyer? There are three main types of buyers who will be prepared to purchase a Minneapolis house with an all-cash offer. These are iBuyers, investors, and house flippers. Cash buyers will usually look for areas throughout Minneapolis to buy in that are family oriented and have good schools, such as Burnsville. Areas like Burnsville are great areas for rentals and can have a good return on investment. Minneapolis also recently became the first large city in the country to end single-family zoning. Now, dwellings with up to three units can be built on residential lots. This can increase demand for purchasing empty lots or properties that have the potential to become a multi-unit building. Benefits of selling your house to a cash buyer include being able to sell your house fast, sell it as-is, move on your timeline, and not need to market the home.
The Fast Cash Home iBuyer
An iBuyer makes the home selling process simple. An instant buyer is a company that utilizes technology and can make an offer on your home instantly. This alleviates the need to market your home and can also give you control over when you move. This model can also support a trade-in. It’s often difficult to qualify for two mortgages at the same time. With an iBuyer, you can take the value of your existing Minneapolis home and apply it to you next purchase. Unlike flippers, iBuyers will make an offer similar to what a typical buyer would pay. If you are interested in going this route, you can contact an iBuyer directly to speed along the sale.
The Property Investor with High Cash Value
Buy and hold investors purchase homes, hold onto them for an extended period of time, and then sell them again at a later time. The price is important to these buyers, but so is the specific property and location. It is imperative to buy in an area that will attract renters. If the home is desirable enough, investors will negotiate, allowing the seller to get more money. You can find an investor, or list your home and wait for an interested party.
The House Flipper That Buys Your Home to Sell
Unlike investors, house flippers plan to fix up the Minneapolis house and sell it again quickly. The neighborhood is still important to these buyers, but not necessarily the rental market. Long-term value of holding the property is not as important as the price. House flippers will deduct needed repairs from their purchase price. They will want to get the price as low as possible.
Direct Buyers for a ‘Quick Sell’ Property
Keep in mind that in focusing your efforts to cash buyers, you will be able to sell your property quickly and easily, but it will often be for a lower price. Cash buyers in Minneapolis will be looking for a great deal and a low sales price. Even though you may advertise the house as-is, investors and house flippers will still call in home inspectors. These buyers will try to negotiate the cost of major repairs and minor repairs to be taken off the purchase price of the sale.
Negotiations and Closing
Negotiations and the closing process look different in an all-cash purchase in Minneapolis. The closing timeline generally is much shorter, as there is no wait for the mortgage process. A financed purchase will take 30 days to 60 days to close, a cash purchase can be completed within a few weeks. A traditional sale with a mortgage can also be derailed due to contingencies or financing falling through. There is also no need for an appraisal, there is minimal risk for the sale failing, and negotiations are minimal or nonexistent. If you skip the real estate agent all together, you can also save on commission fees, but just sure to keep an eye out for hidden fees from a cash buyer.
A Easier Way to Sell Your Home for Cash
Home Offer Guys purchases homes from sellers that prefer to move on with their lives more quickly than a traditional home sale. We often purchase homes that are no longer needed, no longer wanted, or no longer financially feasible to keep.
Getting the Cash Offer and Contract
It’s a common occurrence for Minneapolis homeowners to overestimate how much their home is worth, especially when taking sentimental value into consideration. However, when selling a house to a cash buyer, you will forego some profits to get the sale through quickly and without much effort on your part. Most investors and house flippers will use a variation of the 70% rule. This formula states that a home bought as an investment is worth 70% of the estimated sales price minus the rehab costs. So if your home is worth $200,000, but needs $40,000 in repairs, the maximum you should expect is $200,000 X 70% – $40,000 = $100,000. This may not be the offer you want, but if you want to sell your house quickly, it is the reality. Finding an iBuyer will typically give you a higher purchase price.
Beware of the Online Home Purchase ‘Scams’
In contrast to real estate agents, Minneapolis house buying companies do not need to be licensed to operate. It’s important to do your homework when working with a cash buyer to make sure that they are legitimate and not trying to scam you. Only work with an experienced, reputable company. There are plenty of legitimate companies that can really come through for you, but there are some bad apples. Regularly check your credit history to ensure no one has taken out a second mortgage on your house. Also be wary of any company that charges an application fee up front. Illegitimate companies can take your equity and leave you feeling more desperate than when you began the process. Keep communication lines open every step of the way, ask for proof of funds, and know the exact time you will receive the money for your home to alleviate scams.
Why Choose to List with a Real Estate Agent in MN
It may seem like snapping a few pictures of your home and posting it online in Minneapolis is the way to go, after all you will be saving the real estate agent’s commission. However, there are many benefits to listing with a real estate agent, and they will often earn you back their commission plus some by getting you a higher sales price. Properties that are listed for sale by owner (FSBO) attract fewer buyers than agent listed properties and are more likely to attract scams. Bidding wars are also more likely on agent listed properties. According to the National Association of Realtors, in 2019, homes listed FSBO sold for a national average of $200,000, whereas agent listed homes sold for a national average of $280,000.
Realtors earn their commission by the work they put in. Real estate agents can give you advice about how to get your property ready to maximize profits, prepare the listing, hold open houses, sell the property, negotiate, complete paperwork, and keep the deal on track until closing is complete. Realtors have vast networks for marketing your home and can also vet the potential buyers and their financial situation. When taking on such a huge deal that will affect your financial future, it’s best to leave the details to a professional.
Ready To Sell?
TheMLSonline.com can help you sell your Minnesota home today.
Sold to a Trusted Buyer!
When the offers start coming in, a real estate agent can help you sift through the offers, evaluate the buyers, and help you to make the best decision when selling your Minneapolis home. An experienced agent will spot illegitimate cash buyers and help you get the sale you want. Agents can keep you protected, maximize your profits on your home sale, and walk you through all paperwork.
Selling a House with TheMLSonline
The Minneapolis team at TheMLSonline offers a specialized program to both buyers and sellers. This program increases and improves communication between agents and clients. In addition to our program, we have a genuine care for the satisfaction of our buyers and sellers. We get results and have become a trusted face in the Minneapolis area. We have served more than 20,000 buyers and sellers in the Twin Cities area since 2001 and would happy to help you sell your current home and help you find your next one. We can help you through the process of selling a house to cash buyer in Minneapolis or work with you to get your home on the market and maximize your profits. Add your Minneapolis property to our MLS listings and allow us to help you sell your house in 60 days.