I’m not sure why, but let’s assume you get control of a property that you did not expect to own, or do not want to own. For instance, you get a call from a probate administrator to say that you are the beneficiary of a home left to you by some distant relative. Exciting, yes! What to do now? Which could open up a whole new can of worms for most beneficiaries??
Let's assume you have considered the many reasons why you shouldn’t sell your home for cash? You know it will be for less money. You feel responsible to get top dollar for the house. And you are actually quite intimidated by the process facing you.
If you Google "houses for cash" you will find two categories of results.
i) A list of persons eager to contact you. You are their product and they are naturally eager to engage with you. ii) A litany of articles from people who have had unpleasant experiences trying to sell their house for cash.
If you believe that you can be paid cash today, for top dollar, for a troubled property, please read no further. Otherwise ask yourself three simple questions: i) How much time do you really have before you need the cash out? ii) How much money will it take to ready the property for sale? iii) How complex is the sale? Is it yours alone, inherited from a spouse or a family member, or from a far off feuding family being managed by a probate attorney?
Let's explore the factors that might justify the cost/loss in accepting a “cash for home” offer?
Time: If you need fast cash, and the house needs work, this may be your only option. If this will put you out of your own home, then think twice. But if you are in a situation that you may lose the property anyway, or it is just costing you too much money to keep, then you would be wise to consider all options. The gain may outweigh future potential losses.
Capital Available: What is the condition of the home? If it has been neglected you may not have the ready cash to pay for the “hard” costs of code and other regulatory upgrades, let alone evaluating market values and staging it with a realtor for sale at top dollar. This can become burdensome. Or you find yourself cash-strapped and things could go downhill real quick. Why not evaluate your options for and against?
Complexity: Sometimes there are complexities involved that cause too many obstacles to overcome: a complicated probate situation, long distance property, strained family dynamics or you’ve just inherited a dump. This may be the time to contact a referenced “cash for home” expert!
Other Considerations: Freeing yourself to focus on higher priorities is good. The burdens and stress of life can take a person down farther and farther. Call the decision to sell for cash, albeit for less money, as an investment in your health.
Chrysalis Factor: Objectively evaluating time, capital and complexity is complicated. Let's try for a simple score. No time, no capital and horribly complex = 10. Plenty of time, oodles of cash, and sole beneficiary = 01. Call this the "Chrysalis Factor".
Score 1 - 10 points for each of time, capital and complexity, as per your situation. Divide the total by three. If your score is 05 or lower, call a realtor. Any "cash for houses" offer will probably be insulting. If the score is greater than 07, "cash for houses" is probably the most practical choice. If your score is 10, you need Chrysalis!
Any situation that is time sensitive, has limited capital available to prepare the property for a traditional sale and has complex dynamics to completion, warrants contacting a company who specializes in “cash for home” deals.
How to find the “best deal” is the subject of our next article. But use some common sense. A basic analysis of the market value (e.g. Zillow) will help you know an approximate value, and stop you from being gouged. Selecting a reputable and successful business, like Chrysalis Real Estate Solutions, offers a win-win solution to what might otherwise be a mess.
Finding the right partner, bringing honesty, fairness and objectivity will help you to focus on the things you most value or need in your life. Don’t neglect or sell yourself short in the other important areas of your life.
And remember, good deals require both parties to come out well!