Home Buyers – How To Find Cash Buyers For Your Home
Where and how do you find real cash buyers for your home today?
Home buyers aren’t always as easy to find today as you’d imagine. The media often paints pictures of heated bidding wars and lots of competition for properties. Yet, there are still numerous home listings that have been on the market for years, or haven’t sold and have been foreclosed on. After several years of wild buying, the number of cash home purchases has been declining too. There are cash buyers out there, you just need to know who they are and how to find and contact them.
Traditional Methods of Finding Home Buyers
You can try to attract cash buyers through regular home selling channels.
Via Real Estate Brokers
You can agree to list your house for sale with a real estate agent. Chances are most other agents will ignore your demands of cash offers, but you might get lucky. If you don’t you’ll be stuck in a long listing agreement. That can be really bad news if you are trying to sell within the next year.
Classified ads are a little out of date these days, but they can still attract attention. Most newspapers get most of their action online these days, and Craigslist and Facebook may have more active online marketplaces for these types of classifieds. It can take a lot of manual work and fielding a lot of spam phone calls, but you might score a cash buyer among all of the junk.
Then there is the good old ‘For Sale’ sign to stick in your yard. If your community will allow it and you’ll get a lot of the right type of traffic going by your yard, then it can be worth a try. Just expect a few knocks on the door from agents and unqualified buyers.
Hanging & Passing Out Flyers
You can also go with the old school method of posting flyers at your local coffee shops and handing them out to your neighbors. Someone might know someone who wants to move into the neighborhood and has all the cash to purchase your home.
If you have the luxury of time to wait and do these activities and invest the money in them it can work.
However, it is going to be literally like trying to find a needle in a haystack. Common sense says it is wiser and more profitable to specifically look for the active cash buyers out there. So, how are they?
How to Contact Lenders, Repeat Cash Buyers and Investors
The most consistent and active group of cash buyers out there are investors. There are several types of these investors who have the cash, have bought with cash before, and may be looking for new opportunities. They are also less picky about the cosmetics than regular home buyers.
Think about it. If you are holding out for a cash home buyer that really wants to live in your home, and they have that much cash, they are going to be pretty demanding. They are going to want it to be pristine, to have inspections done, get appraisals, do a few walkthroughs and check out the neighborhood. They are really going to get bogged down if there are any quirks like liens, past due taxes, a short sale or other owners you have to track down and get to sign the deal.
In contrast, an investor buyer is probably happy with whatever condition the property is in. They deal with all the quirky stuff every day. They expect to make their own improvements. They aren’t going to nickel and dime you over the color choices you made or your neighbors. They are looking to help distressed sellers and those who need a fast sale or just want to be confident that a deal is a deal and it is going to close.
Big funds used to be some of the biggest buyers of single family homes in America. They swooped in and snapped up thousands of properties after 2008. Though that has really slowed down and they have been focused on leasing and selling those assets. Plus, they don’t really buy homes one at a time.
So, how do you find and connect with the most likely cash buyers today?
Well, who has been buying other properties for cash recently or has been investing those amounts of cash in real estate?
- Private mortgage lenders
- Out of area buyers and foreign buyers acquiring rental properties
- Local cash buyers helping others avoid foreclosure, renovating homes and renting them
You might identify these potential home buyers by:
- Public records showing out of area owners and cash purchases
- Talking to local title companies and real estate attorneys
- Records of private loans being made
- Attending local Real Estate Investor Association (REIA) meetings
- Using software with lists of cash buyers
- Using the cash home buyer directory at RealMarketExperts.com
How to Make a Cash Buyer List
You may want to make a list of cash buyers. Especially if you are waiting on an inherited property in probate, a divorce, or you have multiple properties you will need to liquidate.
Excel or Google Docs are two ways to begin compiling this list, in addition to using existing lists and directories.
If you will make your own, use several columns to put in their name, contact information, what type of properties they are interested in buying, any unique advantages they offer, and their cash offer price if you get one from them right away.