One of the most important questions you have when selling your Missouri City home for cash is, “How much can I expect receive”? It is only natural that this is the ultimate question. When evaluating how much you may receive there are a few things to keep in mind. How much you may get depends very much on what type of buyer makes an offer. If a local investor with cash in hand makes an offer expect to receive more than if an out of state investment group makes an offer, but needs financing. Your local buyer also, most likely, has good relationships with title companies and assorted contractors, this saves time and also money. Generally the highest offer you receive will from a local buyer.
Another thing to consider is the current housing market in your area. If it is “hot” the buyer will be willing to take a little more risk with a higher offer because their chances of renovating and reselling quickly are much greater. If the market in your area is “soft” it means there is greater likelihood the new buyer will need longer to sell the home which we result in additional carrying costs for them, and subsequently a lower offer to you. So a lot depends on what kind atmosphere the local housing market. If you are unsure of which category you fall into some simple research will tell you the average number of days any given house in Missouri City sits on the market for sale.
Most buyers whether they are local or out of state will make an offer to buy your house in “As Is” condition. Please beware of any cash offers that are contingent on you having to make repairs at your own expense in order to receive a cash offer. The idea behind the groups that offer cash is that they intend to purchase it, renovate it, and put it back on the market and sell it themselves. This benefits you in a couple of ways. First, you will not have to do anything to property and that saves you money, time, and a headache. Second, with local buyers especially, a quick close is practically guaranteed. They want to take ownership of the home and get started on the renovation right away because they have an established network of contacts that are ready to go to work right away. Out of state buyers rarely have these types of networks in place, and will want to have people, sometimes several, come take a look at your home and give them estimates on the renovation before they make an offer. This can take a little time to complete.
Keep in my mind your cash buyer is looking to net a 10-15% profit on your home after it has been renovated. So the offer you get is not usually based on what the property is currently worth, but what the buyer estimates it will be worth in the future. Their basis for the cash offer is on the after-renovation value of the home. They will need to account for the money they will invest in the renovation and still net a 10-15% return on their investment. This will ultimately be their deciding factor when making a cash offer. The only way to know an exact amount that your house is worth is to let some investors make offers to you and see where they come back. All will be different depending on the value of the house, the hotness of the market, and the amount of money it will take to renovate. An ethical buyer will never want you to lose money on your investment and will deal with you in such a way that you understand the basis for the offer they are making.