What Is the Process for Selling Your House for Cash?

When you want to sell your house fast, wait for your next house to be ready, or simply avoid the headache of making repairs and dealing with showings, then there’s no better way than to sell to an investor or a professional home buyer. Common scenarios where you’d want to sell your house to an investor are if you just got relocated for your job, you just went through a divorce, or you’re facing foreclosure. It might be that you inherited a property out of state, or perhaps you have some deferred maintenance and want to sell your house as is.

No matter what your reason is, having an investor buy your house can be a great option for some. Here’s how to navigate the process. 

What Is the Process for Selling Your House for Cash?

When you want to sell your house fast, wait for your next house to be ready, or simply avoid the headache of making repairs and dealing with showings, then there’s no better way than to sell to an investor or a professional home buyer. Common scenarios where you’d want to sell your house to an investor are if you just got relocated for your job, you just went through a divorce, or you’re facing foreclosure. It might be that you inherited a property out of state, or perhaps you have some deferred maintenance and want to sell your house as is.

No matter what your reason is, having an investor buy your house can be a great option for some. Here’s how to navigate the process. 
1. Don’t Do Any Prep Work
Traditionally when you go to sell your house you’ll want to clean, re-paint over the walls, repair damages, and stage the house. You want to make your home look move-in ready to any prospective buyer. However, with an investor, they’ll be willing to buy your home as-is. They will likely buy it at a lower price than if you fixed it up yourself, but the time and energy savings alone can be worth it. Not to mention you probably wouldn't net out ahead in terms of cash in your pocket by making those repairs yourself since most homeowners only recoup a percentage of repair costs in the sale price, and you'll be paying closing costs, realtor commissions and fees.

Save yourself the time and energy and make the process easy for yourself - let the investors do the hard work for you.
2. Calculate the Costs
Before you find an investor and start the process of selling your house for cash, you’ll want to find out how much your house is worth. You don’t want to go into this process blind and be low-balled in the end. Know your numbers and know how much your house is worth in the current market. 

An easy way to accomplish this is to do any of the following:
  • Get an appraisal
  • Talk to a realtor or broker and get a BPO (Broker Price Opinion)
  • Use sites like Zillow or Trulia to see what their algorithm shows for your home value
  • ​Look at the tax value
Just know that if your house needs work and hasn't been updated in awhile then sites like Zillow and Trulia don't know this. Many times their estimates are based on an assumption that your house is market-ready.

And for tax values, this is just another data point but is not always accurate either.
3. Research Investors
After you have determined the fair market value for your home, start researching investors in your area. A simple Google search should get you started. Pay attention to reviews and look out for any signs that it’s a scam. Many honest companies exist that will help you sell your house to investors for the best price. 

Also make sure that any home buying companies you connect with have an actual office address, and preferrably are local to the Charlotte area.  It's easy to get scammed by "fly by night" investors that operate out of their house and don't ever intend on closing but simply want to sell your contract to someone else who has the capital to buy it.  Local home buyers know the market better and tend to be more invested in the community, which can translate into a better price and smoother closing process.
4. Understand the Contract-to-Close and Offer Process
Sometimes the investor will want to lock you into a contract from the beginning of the process. They want to make sure that while they calculate costs someone else doesn’t swoop in and buy the house. You don’t always have to be locked into a contract, but if you feel comfortable with one, make sure you and the investor are on the same terms. Make sure that the investor states how long the process will take. You don’t want to be locked in with an investor forever. The process should be quick. 

While expiration of offers can be common to avoid the seller shopping the offer around, you shouldn't be feeling too much pressure to accept an offer from an investment company.  If you are then talk to other companies that allow you to make this big decision on your own terms.  

Here at QC Home Buyers we don't believe in pressure sales tactics. We're not going to live in the property after we buy it from you and therefore are not in any rush at all.  We respect your need for time to make the right decision. Sometimes the offer price can change if we buy other homes in the meantime and the amount of cash available to buy your house decreases, but we will always be transparent with this process and let you know exactly where we stand.
5. Know Your Home’s After Repair Value (ARV)
The next step in the process is finding your home’s after-repair-value (ARV). This price lets the investor know how much your house could be sold for once repairs and damages are cleaned up. Some investment companies will not share this price with you. However, since you already know what your house is worth in its current condition, you now have an additional data point and can be prepared for anything they may offer you.
6. Estimate Repair Costs
After the investor knows how much they can sell your house for retail once it’s picture-perfect, they’ll want to know how much they’ll have to spend on repairs and upgrades. Again, you should have a general idea of this number thanks to your prep-work. The investor will inspect your home during this step and decide on what the estimated repair costs are. Often the investor themselves or their contractor will do this work. It can help if you have a licensed inspector come through before to have a more accurate number to argue when negotiations happen at the end. 

At QC Home Buyers, we are a licensed General Contractor and have the construction estimating expertise in-house.  Not only does this speed up the offer process for you as the seller, we also will not charge for a GC fee in your offer since we do not have to pay that GC fee. 
7. Multiply the ARV and Find the Cost
Next, the investor will find the final cost and come up with the offer they are willing to give you. They’ll do this by first multiplying the ARV by 70%. This is how house flippers calculate costs to make sure they earn a profit in the end. Investors are looking for 30% of the ARV to go towards holding costs, transaction costs, and commissions. The remainder of that 30% is their profit. After they multiply the ARV, the investor will then subtract the estimated cost of repairs. This will give them their final number and offer. It’s best that you calculate this cost as well or ask the investor to lay out the math they did so you can see how they reached that final offer.

This is not always the case, as some investors will rent your property instead of selling it to an end-buyer after repairs are done. It's also not always the case that 30% of the ARV minus repair costs is needed, and this depends on the real estate market cycle and many other factors.
8. Agree on an Offer
Lastly, it’s time to agree on an offer. Know that you can negotiate this step. Especially if you have legit numbers ready. Don’t expect the offer to be the highest gross sales price because it will be far from that, but you also need to make sure you're making an apples to apples comparison to your other options. 

Selling your home to an investor means that you won’t have to go through the effort of cleaning up, repairing, and waiting to sell your house. You also won't need to stress about showings, financing delays, inspection contingencies, concessions or commissions and fees.  It’s a great, fast process. However, the investor is in the business of making money just like any other small business, and at the end of the day their buy price will have to be a number that yields a profit commensurate with the risk they are taking.
Are you thinking of selling your house in Charlotte? Now is a great time to get your free, no-obligation cash offer from QC Home Buyers and take advantage of our $1,000 Highest Offer Guarantee!

Discover the Easiest Way to Sell Your Home!

WE PROVIDE A VARIETY OF OPTIONS TO 
SELL YOUR HOME:
  • All-cash, guaranteed offers that provide ultimate control in the sale and transition to your new residence
  • Lease-option and owner financing solutions that often put more money in your pocket over a period of time
  • ​Listing and brokerage services
Fill Out The Quick Form Below to Secure Your FREE, No-Obligation Cash Offer.
  • Your information is 100% secure and will never be shared.
1. Don’t Do Any Prep Work
Traditionally when you go to sell your house you’ll want to clean, re-paint over the walls, repair damages, and stage the house. You want to make your home look move-in ready to any prospective buyer. However, with an investor, they’ll be willing to buy your home as-is. They will likely buy it at a lower price than if you fixed it up yourself, but the time and energy savings alone can be worth it. Not to mention you probably wouldn't net out ahead in terms of cash in your pocket by making those repairs yourself since most homeowners only recoup a percentage of repair costs in the sale price, and you'll be paying closing costs, realtor commissions and fees.

Save yourself the time and energy and make the process easy for yourself - let the investors do the hard work for you.
2. Calculate the Costs
Before you find an investor and start the process of selling your house for cash, you’ll want to find out how much your house is worth. You don’t want to go into this process blind and be low-balled in the end. Know your numbers and know how much your house is worth in the current market. 

An easy way to accomplish this is to do any of the following:
  • Get an appraisal
  • Talk to a realtor or broker and get a BPO (Broker Price Opinion)
  • Use sites like Zillow or Trulia to see what their algorithm shows for your home value
  • ​Look at the tax value
Just know that if your house needs work and hasn't been updated in awhile then sites like Zillow and Trulia don't know this. Many times their estimates are based on an assumption that your house is market-ready.

And for tax values, this is just another data point but is not always accurate either.
3. Research Investors
After you have determined the fair market value for your home, start researching investors in your area. A simple Google search should get you started. Pay attention to reviews and look out for any signs that it’s a scam. Many honest companies exist that will help you sell your house to investors for the best price. 

Also make sure that any home buying companies you connect with have an actual office address, and preferrably are local to the Charlotte area.  It's easy to get scammed by "fly by night" investors that operate out of their house and don't ever intend on closing but simply want to sell your contract to someone else who has the capital to buy it.  Local home buyers know the market better and tend to be more invested in the community, which can translate into a better price and smoother closing process.
4. Understand the Contract-to-Close and Offer Process
Sometimes the investor will want to lock you into a contract from the beginning of the process. They want to make sure that while they calculate costs someone else doesn’t swoop in and buy the house. You don’t always have to be locked into a contract, but if you feel comfortable with one, make sure you and the investor are on the same terms. Make sure that the investor states how long the process will take. You don’t want to be locked in with an investor forever. The process should be quick. 

While expiration of offers can be common to avoid the seller shopping the offer around, you shouldn't be feeling too much pressure to accept an offer from an investment company.  If you are then talk to other companies that allow you to make this big decision on your own terms.  

Here at QC Home Buyers we don't believe in pressure sales tactics. We're not going to live in the property after we buy it from you and therefore are not in any rush at all.  We respect your need for time to make the right decision. Sometimes the offer price can change if we buy other homes in the meantime and the amount of cash available to buy your house decreases, but we will always be transparent with this process and let you know exactly where we stand.
5. Know Your Home’s After Repair Value (ARV)
The next step in the process is finding your home’s after-repair-value (ARV). This price lets the investor know how much your house could be sold for once repairs and damages are cleaned up. Some investment companies will not share this price with you. However, since you already know what your house is worth in its current condition, you now have an additional data point and can be prepared for anything they may offer you.
6. Estimate Repair Costs
After the investor knows how much they can sell your house for retail once it’s picture-perfect, they’ll want to know how much they’ll have to spend on repairs and upgrades. Again, you should have a general idea of this number thanks to your prep-work. The investor will inspect your home during this step and decide on what the estimated repair costs are. Often the investor themselves or their contractor will do this work. It can help if you have a licensed inspector come through before to have a more accurate number to argue when negotiations happen at the end. 

At QC Home Buyers, we are a licensed General Contractor and have the construction estimating expertise in-house.  Not only does this speed up the offer process for you as the seller, we also will not charge for a GC fee in your offer since we do not have to pay that GC fee. 
7. Multiply the ARV and Find the Cost
Next, the investor will find the final cost and come up with the offer they are willing to give you. They’ll do this by first multiplying the ARV by 70%. This is how house flippers calculate costs to make sure they earn a profit in the end. Investors are looking for 30% of the ARV to go towards holding costs, transaction costs, and commissions. The remainder of that 30% is their profit. After they multiply the ARV, the investor will then subtract the estimated cost of repairs. This will give them their final number and offer. It’s best that you calculate this cost as well or ask the investor to lay out the math they did so you can see how they reached that final offer.

This is not always the case, as some investors will rent your property instead of selling it to an end-buyer after repairs are done. It's also not always the case that 30% of the ARV minus repair costs is needed, and this depends on the real estate market cycle and many other factors.
8. Agree on an Offer
Lastly, it’s time to agree on an offer. Know that you can negotiate this step. Especially if you have legit numbers ready. Don’t expect the offer to be the highest gross sales price because it will be far from that, but you also need to make sure you're making an apples to apples comparison to your other options. 

Selling your home to an investor means that you won’t have to go through the effort of cleaning up, repairing, and waiting to sell your house. You also won't need to stress about showings, financing delays, inspection contingencies, concessions or commissions and fees.  It’s a great, fast process. However, the investor is in the business of making money just like any other small business, and at the end of the day their buy price will have to be a number that yields a profit commensurate with the risk they are taking.
Are you thinking of selling your house in Charlotte? 

  Now is a great time to get your free, no-obligation cash offer from QC Home Buyers and take advantage of our $1,000 Highest Offer Guarantee!

Discover the Easiest Way to Sell Your Home!

WE PROVIDE A VARIETY OF OPTIONS TO SELL YOUR HOME:
  • All-cash, guaranteed offers that provide ultimate control in the sale and transition to your new residence
  • Lease-option and owner financing solutions that often put more money in your pocket over a period of time
  • ​Listing and brokerage services
Fill Out The Quick Form Below to Secure Your FREE, No-Obligation Cash Offer.
  • Your information is 100% secure and will never be shared.
“I recently sold my home using QC Homebuyers. I was originally apprehensive about selling my home without a realtor but I really liked the idea of an all cash offer and having to pay zero fees in the process. The process from start to closing was amazing! The company's Acquisition Manager was wonderful, he was in constant contact with me through the entire process and gave me a more than fair offer for my home. The best part was that I didn’t have to deal with any showings, pay any commissions, or closing cost. I was also able to pick my closing date as this gave my family time to search for another home and get moved stress free! This is by far the best way to sell a home. Thank you QC Homebuyers for an outstanding experience.”
STEPHANIE MCGUIRE (Charlotte, NC)
“I recently sold my home using QC Homebuyers. I was originally apprehensive about selling my home without a realtor but I really liked the idea of an all cash offer and having to pay zero fees in the process. The process from start to closing was amazing! The company's Acquisition Manager was wonderful, he was in constant contact with me through the entire process and gave me a more than fair offer for my home. The best part was that I didn’t have to deal with any showings, pay any commissions, or closing cost. I was also able to pick my closing date as this gave my family time to search for another home and get moved stress free! This is by far the best way to sell a home. Thank you QC Homebuyers for an outstanding experience.”
STEPHANIE MCGUIRE (Charlotte, NC)
© Copyright 2022 QC Home Buyers  - All Rights Reserved
© Copyright 2022 QC Home Buyers  
All Rights Reserved