When you decide to sell your home or an investment property, you want to work with specific types of buyers. The best individuals to work with ultimately depend on your situation and goals; however, certain types of buyers make the process of selling your property a little easier than others. Let’s take a look!
A cash buyer is pretty self-explanatory — it’s a buyer who can pay for your house with cash! Sometimes it’s an investor, and sometimes it’s a private buyer. The biggest benefit of working with a cash buyer is you don’t have to worry about any loan contingencies causing problems during escrow. However, you can sometimes encounter cash buyers who make larger demands of you, because they know their offer is attractive. That may mean they ask you to repair a number of things or they may ask that you come down in price. Regardless, selling to a cash buyer can be a great option if you need to sell quickly.
Underdog buyers are the individuals with limited funds available to purchase the home. These buyers may need a loan for the mortgage, as well as a loan for the down payment, which can cause certain complications for the seller. As the seller, you may need to make a few concessions in relation to closing costs or certain repairs to keep up with the standards of the mortgage lender.
The advantage of working with an underdog buyer is the possibility that he or she will offer greater flexibility. Since the buyer realizes that lacking funds complicates the sale, he or she is willing to give a bit more to the seller during negotiations. They are also often very eager to get into a great home, and may be more likely to take really great care of your property.
As the name implies, a window shopper doesn’t actually plan to buy a home… they just want to look and see what’s out there. You often find window shoppers at open houses, asking questions, but acting non-committal. If you suspect your open house visitors are lookie-loos, ask about their timeframe to move. If they come back with vague answers, you may be best served focusing on more serious home shoppers.
When an individual or couple falls in love with your home and gives you the details about their family or plans for the house, they may be ready to make an offer. But be cautious when working with this type of buyer. Sometimes their excitement overrides their budgeting logic and they may find themselves too stretched to offer fair market value. However, if you find an impulse buyer with good credit and financing, that’s a goldmine! Do what you can to work out a deal.
Understanding your buyer’s motivations to buy and time frame, and identifying buyers whose goals match up with yours is the best way to ensure a smooth home sale.