Homeowners have seen their houses rise rapidly in value over the last couple of years. However, those same homeowners hoping to see the proceeds from a quick sale in 2022 could be disappointed.
Every month in 2022 except for June has seen house sales fall. August is typically one of the prime selling months for real estate, and it was forecast that 575,000 new homes would be sold that month. In reality, only 511,000 house sales happened in August this year. And July’s house sales were the lowest seen since May 2020.
What does this mean for someone needing to sell in a hurry? Well, many homeowners turn to cash buyers, and Texas has many of these types of investors. But, is this a good way to sell a home, and can these buyers be trusted?
What does selling a home for cash in Texas involve?
Searching on Google for a local cash buyer in Texas would bring back a number of results. The process would involve selecting one of these websites and then filling in a short form requesting an offer on your property.
These house buyers specialize in buying properties fast from motivated sellers who have no wish to see their homes on the market for months on end.
For instance, the website https://housebuyerstexas.com clearly explains that a cash offer can be made on a Texas property and if accepted the deal can be closed in 7 days.
An inspection of the property may take place, but normally this is just to establish a solid offer. No renovations or repairs will need to be carried out, unlike if you were selling through a realtor normally.
What are Texas house buyers looking for?
Cash buyers in Texas are investors. They are looking for properties that they can invest in, and of course, turn a profit. It is perhaps this reason why some people distrust cash house buyers.
A realtor’s job is to try and get the best price for your property that they can. A property investor wants to buy a home and sell it for a profit.
However, they target homes that are often difficult to sell by other means. Distressed homes for instance are difficult to market and will largely appeal to cash buyers and those involved in fixing and flipping properties.
Motivated sellers are also in demand as these homeowners aren’t as interested in the market value of their homes so much as they are wanting a quick sale. This type of property investment is becoming popular, and there is said to be a house buyer’s frenzy in 2022. 87,500 US homes were bought by cash investors in the second quarter of 2022 which was an 11% quarter-over-quarter rise.
What are the advantages of selling a house to a Texas property investor?
The distrust of property investors may come from the lower offers a seller will receive, yet there may be other advantages that offset this.
If you sell through a realtor, there will be closing costs. These can be up to 10% of the proceeds from a house sale. A seller closing cost calculator can help to show exactly what you may lose when selling through a realtor.
Other advantages include the following:
- Speedy sale
- Possibility to close within a week
- No marketing
- No viewings
- No staging
- No repairs needed
- No fees
The biggest advantage of using a cash buyer in Texas or anywhere is the speed of the transaction. Typically, it can take over two months to sell with a realtor, but cash buyers will normally take a couple of weeks to close, and can be quicker.
What are the cons with Texas house buyers?
Of course, if someone is willing to give you cash within a week for your home, then you have a very desirable property, or you are very lucky, or they feel your house is a good investment.
Property investors have to know what a good deal looks like. They need to make a profit. Therefore, you will not receive an offer close to the market value.
This for many can be balanced if there are major repairs to be made, the house needs selling urgently, and by the other financial advantages such as lack of closing costs.
You will also not be able to negotiate. You will usually receive one cash offer and it is up to you whether to accept this or try your luck with another investor.
One difference between Texas cash buyers and realtors is that there is no regulation. These companies and individuals are cash investors, and there is no need for any type of accreditation. However, many sign up voluntarily for the National Association of Property Buyers, the Better Business Bureau, and TrustPilot.
If trust is still a concern, the internet is a fertile ground for online reviews and consumer information. It should be easy to find information on any reputable property investor in Texas.
Can Texas cash buyers be trusted? The answer is likely to be yes, but any homeowner should perform their own due diligence. Check for those reviews online, and look for any publicity surrounding your chosen investor.
Also, look at how long they have been operating, and ask them for testimonials. Any reputable property investor will be happy to furnish any information you require. Whether you are happy with your cash offer is down to your requirements, but there are no obligations to ever accept.