In a busy post-pandemic property market, an increasing number of owners are looking to sell for cash.
The unconventional approach – where the purchaser buys without having to get a mortgage – appeals to many sellers because of its speed and relative simplicity. But it’s not for everyone, as cash buyers, who can be hard to find, often push to negotiate down on price.
Kirk Simpson, head of Lucra Property Group , says cash deals are on the rise.
“Whether it’s a matter of their listing expiring or clients divorcing or financial pressure due to Covid, the trend of selling and buying houses for cash is steadily increasing,” he says.
Here’s some expert advice on how to sell a house fast for cash.
1. Carefully choose an agent you trust
James Kirkland from Upside Realty says sellers should pick an agent wisely.
“Make sure you choose someone who you believe has your best interests as heart, rather than prioritising a quick sale,” he says.
Kirkland says if an agent is “just after a quick transaction and commission”, they might not consider good quality, pre-approved buyers willing to pay more than cash buyers, in addition to offering advice on selling for cash.
Local experts: Find the best agent in your area
2. Understand the true value of your property
Given cash buyers are more inclined to negotiate down on price, it’s vital sellers have a firm idea of what the property is worth, Kirkland says.
“If you’re in a rush to sell, it may make sense to sell for slightly less and get a quick sale, but if you’re not, then it’s worth waiting for a pre-approved buyer who is willing to pay the full current market value,” he says.
The best way to find out the value of a property is to get it appraised by a local real estate agent or get a few quotes to compare.
3. Generate as much competition from as many buyers as possible
Property marketing strategist David Kaity says a “for cash” campaign should generate as much competition from as many buyers as possible.
“This can help put the pressure on cash buyers to lift their offers as close as possible to those who can only buy with finance.”
4. Ensure a cash buyer is genuine, by getting proof of funds
Kirkland says genuine cash buyers should be able to show proof of funds quickly, “so make sure you or your agent asks for this before accepting an offer and that all offers are made in writing.”
He says sometimes buyers make what they call “cash offers” for properties because they expect to receive pre-approval for a loan or confident their loan will be approved, but approvals are always subject to conditions, such as a formal valuations being done or the buyer’s other properties being used as security etc.
“These are not cash buyers.” Sellers need to understand the difference.
5. For an equally good result, consider selling at auction
Kaity says sellers who want a quicker sale should also consider an auction.
“The terms of an auction mean that a contract of sale cannot be subject to finance, which means that sellers have a similar level of certainty or security that settlement will take place just as it would with a cash sale,” he says.