Sellers are asking about cash for houses in the Bay Area – they want to know how much they will get if they sell their house. If you’re thinking of selling and wondering how much you might get, this blog post will help to answer that question.
An Important Definition
Since this blog post will be read by people all over the Bay Area (and surrounding areas), with various price prices reflected throughout the area, it’s difficult to write about a specific dollar figure. However, here’s an important concept that will help you understand how much people pay cash for houses in the Bay Area…
On The Market: When a house is sold “on the market”, that means it’s usually listed by a real estate agent and sold after several potential buyers have seen the property and at least one has made an offer. Houses sold on the market will often be sold for approximately the same amount that other similar houses in the area have sold for. This is called “market price.”
Off The Market: When a house is sold “off the market”, that usually means the homeowner has decided to sell their home directly to a buyer instead of listing their home. Houses sold off the market will often be sold for slightly less than their market price, this is called “below market price.”
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You might be reading this and asking, “why would anyone accept below market price?” That’s a good question but there’s more to the story:
Selling on the market usually means you’re selling it to a person who will choose to live in the house. They’re buying the house for themselves and their family. But when you sell off the market, you’re often selling to a company that might be investing in your house to turn it into a rental property or to renovate it and sell it.
Selling on the market usually means the buyer needs financing. Selling off the market, in a private sale, often means that a professional home-buying company is will to pay cash for houses. (That’s why some people prefer to sell off the market – they don’t want to wait for the seller to get financing; they want to know they’ve sold the house right away).
Selling on the market actually costs money… sometimes a lot of money. If your house needs renovations and repairs, you usually have to spend money to fix up your house before you sell it on the market. However, when you sell it off the market, such as to a company like us at Twin Home Buyer, you may be able to sell your house as-is – saving the money (and the time and hassle).
Selling on the market through an agent will often result in commissions and fees to the agent for the work they did to sell your house. But selling off the market to a home buying company like Twin Home Buyer usually means no commissions or fees or closing costs.
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One way to look at it is that you will pay a slight premium by going straight to a cash buyer, but there are other, non-price related benefits of doing that.
Cash buyers can close quicker, they are more flexible if you need more time to move out, they will buy the property in as-is condition, they can work around difficult title issues, and they offer a discrete sale setting. So, how much will sellers get in cash for their home? It depends on how you sell – on the market or off the market… and that is determined by how quickly you want to sell and how much time and money you’re willing to invest to sell.