September 29, 2019 – Written by Dev Singh
So, what is the difference between selling your house in Sacramento for cash VS selling your house in Sacramento through the traditional method? Let’s face it, when it comes to selling your house, it can be a tedious process. Yes, most of us have been there, but it doesn’t have to be that way. I will break down the process step by step for you into Layman’s terms so it is easier to understand.
Selling Your House In Sacramento For Cash
Selling your house for cash to a real estate investor can be one of the fastest ways to sell. When approaching this method, 5 things to consider:
- Understanding the current market
- Understanding the right time to sell
- Understanding how repairs affect the price
- Understanding how to negotiate
- Understanding escrow closing
So, what is the catch? Well, real estate investors normally like to buy houses that are distressed, in need of repairs, “run-downed” or are in process of foreclosure. So, if you have a house in Sacramento that needs major repairs, going into foreclosure or you’re in a situation where you need to sell fast; working with a cash investor might be a wise decision. Why? Because if you go down the traditional route to list your house with a real estate agent; you will need to get the property repaired up to date, get it listed with a real estate agent and wait. We know that can take a very long time.
- Understanding the current market – Learning about the current market value of your property in Sacramento can be tricky. Although there are media apps like Zillow or Redfin to show local trends in the market. It is known to get in touch with a local real estate expert to guide you in this process. At NorCal House Buyers, we’re here to guide you every step of the way.
- Understanding the right time to sell – According to Adams Data most of the home sales happens in the months of summer and spring. Although it ultimately depends on a homeowner’s situation. Often one of the many reasons behind “the right time” to sell is a homeowner’s financial situation. For maximum return on your house sale, it’s wise to wait for “Sellers’ Market” to rise. Meaning that when there are more buyers than there are homes available for sale. This is when the prices of houses are high with an ample amount of equity. Sometimes this may not be the case for you, if you find yourself in a situation where you need to let go of a property as soon as possible, then reaching out to a local real estate investor would be an intelligent idea.
- Understanding how repairs effect price – It is important as a homeowner to keep up with the repairs of a property. After all, it’s one of the biggest assets to a homeowner. It is better to follow up with small repairs as soon as they arise which will allow a homeowner to avoid large costly repairs. And yes! this will cost you money, but after all, it is your home. Start taking care of those scratches on tiles, those markings on the wall, dirty grout between tiles, that water leak you’ve been ignoring in the back yard. So, the bottom line is, the more repairs your property accumulates, the less value it will present through an appraisal. So, get to work!
- Understanding how to negotiate for your house price – Selling your house in the Sacramento market on MLS (link) can be tough especially when you know it is in desperate need of repairs. These types of properties will only boil down to few options. Either sell it “as-is”, update it with necessary repairs to rent it out or list it on the market. Negotiations arise when you are selling your property in an “as-is” condition to a cash investor. We as homeowners know we want the best value and price for our property. Before starting any price negotiations with an investor, it is important to go through a checklist of things: A. How much repairs are needed and are you able to pay for those repair costs? B. Are you in a financial or personal hardship where you need to sell fast? C. Do you have the option to rent it out to a qualified tenant after necessary repairs? D. Are you moving to another location due to job relocation? Go through the above checklist and see what your situation is. Find a local contractor to get a free estimate on repairs costs. Do all your homework to calculate the repair costs along with the current market value and let the investor know about the price that you want for the house.
- Understanding escrow closing – Escrow is a process where two parties meet to buy or sell real estate. This is more like a trust account which is opened when both parties come to a mutual agreement. Once you are in contract with the buyer purchasing your property, they will need to make a deposit of earnest money. Here is an overview of how the process works:
Selling Your House In Sacramento Through The Traditional Method
Selling your house through a well-qualified real estate agent can be another way to sell your house. This method is generally a great way to sell if you are looking for a maximum price for your property and the property is not in any type of distress. This will increase the time to get your property sold and sometimes it could take longer than 90 days if you’re working with a less qualified real estate agent. When approaching this method, you always want to make sure that your property is up to date with remodels. When people come to an “Open Houses”, they look at the kitchen and bathrooms. Also, you want to make sure the roof is in good condition and the HVAC unit is working properly. When selling your house in Sacramento through the traditional method you have to consider realtor commission costs that run at a typical rate of 3-6%. Find a local well-qualified real estate agent in Sacramento who can lead you in the right direction for selling your property.