There are many scenarios where you might need to sell a home that isn’t quite up to the high standards Toronto home buyers expect. You might have inherited the house from a loved one. You might have fallen on hard times and not had the money to fund repairs. You might have rented it out to terrible tenants. You might just have lost interest in the property and now want it off your hands. Regardless of the reason, if you own a property in less than ideal condition, the last thing you want to do is take a “we buy houses” offer.
While many a desperate home owner has turned to the sell my house for cash guys thinking it was their last resort, right now in Toronto, the sellers’ market is your best friend. With low inventory and high demand, you don’t want anxious overpriced offers getting into the wrong hands. Here’s why you don’t have to settle for low ball “we buy houses” offers even if your house is in horrid condition.
Who are the We Buy Houses for Cash Guys?
These companies specialize in buying houses for cash with a focus on situations such as:
- Difficult divorce
- Foreclosure or threat of foreclosure
- Financial woes
- Inherited properties
- Tenant nightmares
- Ill repairs
- Power of sale
- Liens
In other words, they help people in desperate situations by offering cash for their homes. You’ve got somebody whispering in your ear that they’re willing to take that unsellable home off your hands for a “fair” price. In fact, they’re not just offering a fair price, but cash on the barrel. They’ll take the house as is, and all you have to do is move. We absolutely see why you might want to just take their offer and walk away from the property. We can even see why you think these guys are doing you a huge favour. Unfortunately, mark our words, it won’t be long before the home you just sold for that fair price pops up for tens or even hundreds of thousands of dollars more than what they paid you.
Understanding the Market
This scenario is never the sellers’ fault. Instead, it’s all because you didn’t have the presence of mind to think things through. And this is how cash offers work. The allure of the money makes it easy for you to say yes and accept the offer. But since when was the easier way the best way? Probably never. So your strategy should be to never sell for the first offer, but instead to understand what makes a fair and best offer. That means you have to understand the Toronto real estate market. For example, at the time we wrote this post, the average home price in Toronto was $1.13 million. You might assume because your home is in ill-repair you won’t get anywhere near this price. But in a sellers’ market where homes are in high demand, even less than ideal homes are seeing bidding wars. We aren’t saying you’ll get this price, but we are saying you could depending on the circumstances, the type of home, your location, etc.
Fixer Upper Obsession
Fixer uppers are always in high demand. Home buyers love the idea of buying a Toronto home they can renovate to their exacting specifications. With dozens of DIY real estate series showing buyers how easy this is, home buyers are fixer upper obsessed bargain hunters looking for their chance to buy a home in a desirable area and bring it back to its original glory. And this is a trend that can make you respectable profits. Selling to cash buyers takes you out of the mix. You’re handing over the reins and the money to investors who will take full advantage of the sellers’ market and the many buyers all vying for any property that comes available.
Missed Opportunity
Selling for cash bypasses the sellers’ market bidding war that helps maximize home values. While this is terrible for buyers, it’s a perfect storm for sellers even when your home has seen better days. Yes, you sure can avoid the work and small investment you might need to put in to make your home more presentable with a cash offer, but honestly, even the bare minimum effort can create a frenzy of buyers hoping to invest in a fixer upper opportunity. But you might also miss an opportunity the other way around. If you choose not to work with cash buyers, you miss the chance to sell your home right away, take the money and get on with your life. Even in this market your home can still sit on the market for a long time. BUT right now houses are selling at a stellar pace in most locations. We’re talking days, not weeks in many cases. So the question is, which missed opportunity would you prefer? Door number one: You sell fast for less or Door number two: You sell a few days later for far more. We’re thinking most of you are opting for door number two!
Dealing with a Dilapidated House
We now have to address the elephant in the room: The dilapidated house. The work your home needs can be a real incentive to sell for cash. You might not have the cash to invest in even the most basic things like paint. You might even be in ill health or have poor mobility which can also make the efforts of preparing your home too strenuous both physically and mentally. However, there are two things to keep in mind:
- If you have good credit, and equity in your home, you can take out a small loan to prep your home for sale and
- If you are unwell, a good real estate agent can take the burden off your shoulders and help stage your home to make it presentable for a sale.
A good real estate agent has the resources to stage even the most dilapidated homes to make them listing ready. As mentioned, there are buyers looking for opportunities like this. Whether they want to live in the home, flip the home, rent the home, or even tear down the home, there are always buyers in this market willing to pay an actual fair price for the right property. With minimum effort and investment up front, you can reap the rewards with increased profits when you take the time to speak to a real estate agent first.
The Danger of Hasty Decisions
There are always reasons to go the cash offer route. But the main warning we have here is simply to review your options. Before you sign on the dotted line speak to an experienced real estate agent who knows your area (like us). We’ll provide a free assessment along with an honest list of the things we’ll have to do to sell your home. If you really want to sell without taking any steps to get top price, whether for health, emotional or other reasons, you still have nothing to lose to hear an agent out so you can weigh your options. Keep in mind that we buy houses offers can come in as low as 65% of your home’s actual value, but can also be more reasonable. You won’t know where you stand unless you speak to a real estate agent for a fair assessment. Also, in the case of an experienced real estate agent, if you let them sell your home you can actually end up getting over asking by as much as 10% or more.
If you want to talk about your home value and what it will take to sell your home, we’re some of the best real estate agents Toronto offers. We’re ready to find solutions to get top dollar even in your home’s current condition. Give us a call at 416.291.7372 or email us at hello@christinecowern.com. We’d love to work with you!
