You’ve seen the signs on almost every street corner or off-ramp, “Cash for houses in Miami.”
Some of these signs are cartoonish in style and others look like they’ve been handwritten and nailed to a light pole. Some “cash for houses” signs make claims they buy houses in any condition at a competitive ALL-CASH rate.
For whatever reason, if you need or want to sell your home fast in Florida, this looks like the perfect opportunity to sell quickly without the hassle of getting your home market-ready for potential viewings.
Companies Who Offer Cash For Miami Houses.
The individuals and companies putting up these signs are investors seeking quick, undervalued properties to capitalize on. Putting up signs or even handing out flyers bypasses a lot of the work involved researching distressed properties. And instead homeowners who want to sell quickly find them.
The key target market includes homeowners in some sort of negative financial situation. This could be anything from families facing bankruptcy or foreclosure, medical issues, divorce or even couples who own damaged properties in disrepair.
They also hope to find properties transferring ownership from probate sales, vacancies and even existing listings that are about to expire.
The Thought Process Behind the Offer
Since investors want properties that can be turned around quickly at a profit, they need motivated sellers and properties in distress that can be rehabbed fast for resale. As the seller, this may or may not be your best play.
The buyer’s main sales tactic will be to ease your burden quickly. They know you have some emotionally binding stressor that requires a quick sale.
As a result, there’s a high chance the offer will only cover the remainder of the mortgage balance irrespective of the market value of the home. At best, investors want to purchase properties at wholesale pricing, which is often below fair market value by at least 30%.
Consider Your Position Before Negotiating
Keep in mind the financial burden of maintaining a property you don’t need could be higher than you think. Everything from mortgage payments, insurance, and property taxes must be paid while you own the home. The longer you delay a sale because your unsure, the longer you need to cover mortgage payments, utilities, maintenance, and upkeep.
Do the math! On average how long would it take to sell your Florida home on the open market? Based on an average sale price, will you cover the cost of maintaining the property for the extended timeframe?
In other situations, you may have no choice but to sell fast due to an impending foreclosure or estate tax cash requirement. Take all of these factors into consideration as you begin to look at offers from buyers.
I’m going to sell on the open market, how do I increase my sale value?
If you want to maximise your sale value, first you need to get an idea of what your property is worth.
It’s not too difficult to get an idea of a property’s fair market value. You pay a couple hundred dollars for an appraisal. Alternatively, you can speak with a local realtor. They can give you a rough idea of the value of your home in its current condition.
Once you have an idea of what the estimated value is based on current market conditions, think about what upgrades can be done quickly and inexpensively to improve the property and increase the value.
Think like an investor! Before selling an investor would ensure the home is clean inside and out. The windows and screens would sparkle. They’d remove all weeds, trim trees and bushes back and ensure the yard is maintained regularly. Depending on the property, an investor would consider replacing the carpet throughout, tiling the bathroom/kitchen and repainting inside and out.
Investors may even redo the kitchen and put in a new appliance package, thus making their margin on the property obtained at 30% below market value. You don’t need to do this, but if you have the time and money to do so, it might be worth the investment.
Back to our original question:
Cash For Miami Houses: What’s the right choice for you?
The bottom line is if you’re not in any hurry and you can wait while your property is listed on the open market for several months, it might be in your best interest to sell to a traditional buyer.