Should I Take All that Cash?
Should you take all that cash?
With the tight housing market and supply way below demand, chances are you have received a letter or phone call asking if you would be willing to sell your home. Many of these offers are legit buyers - investors and desperate future homeowners alike. I have put letters in doors for clients who want to live in a particular neighborhood with nothing on the market. What should you do if you have a buyer willing to pay you in cash way more than you ever thought your house would be worth?
As you might guess, my inevitable answer is please, please get a realtor involved before you agree to anything. Here is why:
Housing prices are increasing at record pace and so checking Zillow or tax records alone isn’t going to give you an accurate view of what your house is actually worth. An experienced Realtor who helps people in your area buy and sell every day is going to have resources and connections that will give a much more accurate view of your home’s value. Just because it seems like a LOT of money for your home, there is a good chance you are being underpaid.
There is much more to an offer than just the sales price. Before I was a Realtor, I had no idea how much nuance there is when selling a home. Do you have to pay seller paid closing costs? (no) Do you have to have your home up to current code and have proper building permits on any work done before you can sell? (not in Georgia) How much earnest money should I expect and how do I get it if the buyer defaults? (Minimum 1% of purchase price and I have no idea if there aren’t realtors involved) These are just a fraction of all the things to consider when negotiating on the sale of your home.
So, you sell your home, but where are you going to live now? Some people are considering renting because they think that this is a bubble and they want to cash out now “before the crash”. A few issues with that - it’s really hard to find a rental and rents are at an all time premium. Plus, there is no indication that this is a housing bubble and prices seem to just be going up. A good Realtor can help you figure out how to transition from one home to the next.
If you are tempted to sell because you want to live in a different area or your current home isn’t meeting your needs, I am happy to have a conversation about what your home is probably worth, what you would need (or not need) to do to list your home, and strategies on how to transition to your next home.