Selling a house directly to a cash buyer instead of listing on the market circumvents the traditional home sales method and has become more common. The trend is driven by the fact that today’s condition of homes are very old, simply based on the original construction date of the house. For example, in Los Angeles County it’s not uncommon to drive through a neighborhood where most of the homes were originally built in the early 1900’s. That would mean these homes are over 100 years hold. In these cases, a fast house sale to a professional Los Angeles home buyer or investor may be a more guaranteed process in a shorter period of time than the traditional home sales process.
Some Los Angeles home owners would prefer to do the selling work and pocket the commissions themselves, while others simply want to avoid the hassles of the traditional process, including the showings. Time may also be a motivating factor if a job or personal matter forces a move to a new location or financial circumstances have changed. Finally, some decide to sell their Los Angeles house directly because of the convenience of the process, which is streamlined and speedy. They desire a home selling process that is easy and stress free. No matter the challenges you face with selling, a direct sale may be your solution.
It only makes sense that you have concerns about making a misstep that could cost you profits, time or additional stress. By taking the time to understand the most common errors sellers make, you can put yourself in the driver’s seat and feel secure about the method you choose to sell your home. So read on as we explore three mistakes you should avoid when selling your house directly in Los Angeles.
The Value Of Your Los Angeles Home
While the emotional value you place on your home is understandable, it rarely equates to the current market value, which makes it a fairly common mistake and one you should avoid when selling your house directly in Los Angeles. Instead, you can better understand the current market value of your home by comparing it to recently sold properties (in the last 3 months) that are the most like and nearest yours. Then, the most important step is to make adjustments, up or down, for the value of any property differences. In other words, you can’t take the price of a old house in Los Angeles that recently sold down the street and expect that to be the value of your house.
Many other factors are at play in determining the value of a home, such as the property’s location, style and age, and its conformity to the neighborhood. No two homes carry the exact same value, unless they’re new construction homes in a newly built community. When your professional home buyer is sharing their research on recently sold comparables, they might talk about some (not all) of the following characteristics:
- Year of build. Homes of early 1900 builds are valued lower than late 1900’s builds
- Style of house. Demand varies for spanish, cottage, ranch, etc. Consider layout as well.
- Number of bedrooms. In addition the size of the bedrooms matters.
- Number of bathrooms. In addition, size of bathrooms matters.
- Living area size and avg. price per sq. ft
- Lot size
In addition to the above characteristics, a major factor to take into account is the condition of the house. Does the house look unmaintained? Is the house well maintained, but has dated style? Was the house recently upgraded with high quality materials? Have the below high cost items been replaced?
- Kitchen remodel, valued between $50,000 to $150,000
- New roof, valued between $30,000 to $65,000
- HVAC system, valued between $25,000 to $50,000
- Plumbing, valued between $15,000 to $25,000
- Electrical, valued between $20,000 to $40,000
Professional buyers like those at Fair Sale Homes want sellers to make an educated decision about the direct sale of their house. We pride ourselves on educating our home sellers with the same research we have access to. At Fair Sale Homes, our professional buyers help you understand the current market value of your house, comparing what you could profit from with a traditional listing and then making you an offer that you’ll agree is fair for a direct sale. Another plus of working with professional buyers at Fair Sale Homes is that you won’t incur any expenses for prepping and repairs because we buy houses as-is for cash. Ultimately, Fair Sale Homes looks to serve the goals of the home seller.
The Contract: Real Estate Purchase Agreement
Another thing you should avoid when selling your house directly in Los Angeles is not getting everything in writing. Without having the details written out in a purchase agreement , enforcing these verbal agreements can be challenging especially as one conversation about a certain detail evolves into many. Even if the buyer and seller have the purest of intentions, verbal agreements can be misinterpreted or forgotten with the passing of time– nobody’s memory is bulletproof.
In addition, since information and decisions can be passed through in-person, phone calls, texts, email, and written notes, piecing it all back together can be tough. For this reason, Fair Sale Homes spells out everything clearly in writing in one document, so you can avoid conflicts and misunderstandings and ensure each party is on the same page with the expectations and responsibilities placed upon them therein. This ensures a better home selling experience for everyone involved.
Professional buyers like those at Fair Sale Homes lay out the details of the contract in writing and never pressure sellers to sign quickly before your attorney can review the document. Once you see everything in writing, you can ask all the questions you need in order to make you comfortable with the price, terms, and the overall selling process. In addition, our professional buyers at Fair Sale Homes provide a guaranteed closing date, often in just days or weeks, because they won’t be moving in, they’ll work with you so that you’ll only have to move once, allowing you to set the most convenient closing date. Another plus of working with the professional buyers at Fair Sale Homes is that you won’t pay any closing costs because of the built-in streamlined efficiency of our in-house professionals handling every aspect of the transaction.
The Buyer
Not taking the time to research the Los Angeles cash investor you select to work with is another thing you should avoid when selling your house directly in Los Angeles. If a cash buyer is being extremly pushy with getting you to sign a contract, beware. If you’re having doubts about a cash buyer due to one of following reasons, you have good reason.
- Cash buyer who tells you a price over the phone (or text), without ever seeing the house
- Cash buyer who does not request an appointment meet you at the house
- Cash buyer who does not walk-through to review the condition of your house
- Cash buyer who cannot explain properties they’ve recently purchased/rehabbed
- Cash buyer who cannot show proof of funds to purchase the house
It’s essential to check the background, track records and credentials to ensure they’re legitimate. Professional buyers like those at Fair Sale Homes have a strong track record of successfully closing real estate transactions. At Fair Sale Homes, our highly regarded professional buyers at Fair Sale Homes invite you to check our reviews and reputation. When a professional buyer from Fair Sale Homes buys your house directly, you can be sure of the financial resources backing the offer. We have decades of property buying experience in Los Angeles with houses, apartments, and even land.
The best way to avoid making any mistakes when selling your house directly in Los Angeles is by working with professional buyers at Fair Sale Homes. So talk to one of our professional buyers at Fair Sale Homes today about how we can save you time and money and avoid making costly errors with the sale of your house. At Fair Sale Homes, we’re happy to answer your questions without any obligation about the unique features that add value or any concerns about the condition of your property. At Fair Sale Homes, every member of our highly regarded team of professionals lives and works in Los Angeles. At Fair Sale Homes, we operate with total transparency; we’re your neighbors who care about our community and the people who live here and want you to feel good about working with us long after the closing. Contact Fair Sale Homes at (626) 863-7006.