Most homeowners have wondered one of the following: sell my house on my own, sell my house with a real estate agent, or how much will an investor pay for my house?
The truth is that the Dallas-Fort Worth area has seen a dip in home purchases, as many home buyers have stayed away from open houses due to COVID-19. Cash investors have become the fastest way to sell homes.
From Tarrant to Collin counties, the location of your property matters just as much as the condition to a savvy investor. Local cash investors offer the fastest close, but will they pay your asking price?
In this article, we help you answer that question and what you should look for when selling to an investor.
Here’s an overview of what we will talk about:
- What are the different types of investors
- What to look for in Investors
- How much will an investor pay for your house
- How to calculate your home’s worth
- Cash investors vs real estate agents
What Are the Different Types of Investors
Some investors are better than others. You obviously want to sell your home fast, but you also want to get the most money. The type of offers you receive will depend on what the investor wants to do with the house:
- Local Cash Buyers (Fastest investors) – Typically an as-is buyer who don’t need any financing and provide proof of funds almost overnight in most cases.
- Out-of-State Buyers – These investors may not work as fast or even care to see your property. They may also be working from a wholesaler like Zillow Offers. You don’t know if they’ll have earnest funds, so it’s best to ask upfront when they can close and provide proof of funds.
- Wholesalers – These are often groups of home flippers or corporate investors who take more time to close and may not even pay the full amount of your asking price at closing. Knowing your vulnerable, these investors may negotiate a lower price.
- Online Buyers – You should be very careful with OpenDoor, Zillow Offers, and other corporate investors that will likely low-ball you by tens of thousands or even hundreds of thousands of dollars.
In some cases, not every wholesaler or online buyer is a bad deal, but they don’t come close to what you actually want in an investor.
What To Look for in Dallas-Fort Worth Investors
Dallas-Fort Worth real estate is highly competitive for investors. You will likely make more by working with a local investor who knows the lay of the land and what the value of a house is in Collins compared to Ellis County.
Here are the major criteria that we look for in a proper investor:
- Cash on Hand – With any investor, you should check upfront to see if their cash offer is legitimate. You may want to ask for proof or earnest money. The best part is that these investors don’t require any financing, so you won’t have to wait on a broker or bank loan. Nothing can ruin a sale more than waiting for finance approval.
- Fast Offer – This is a double-edged sword. While fast offers are amazing, the first step is to always check that the offer is legitimate and backed up with actual cash. Otherwise, it may be a wholesaler trying to dupe you into waiting on the sale. However, cash buyers don’t have to wait for anything. If their money is real, the offer will come immediately or within hours of viewing the property. Some may even use a contractor or agent to make an offer in their steed.
- As-Is Buyer – Another reason local cash buyers in Dallas-Fort Worth are better is because they don’t require any repairs or upgrades. If your home needs plumbing repairs or has aged a bit since you bought it, these buyers won’t care. They’ll do the necessary work with their own contracting team and still pay cash for your home.
- Close Quickly – Cash investors typically only need a week or less to close. While you may need more than a few days, the right local real estate investor in Dallas can close within 5 days or less. If you want to close quickly, just ask the investor when they can complete the sale. Any real cash buyer investors will be able to provide the proof and set up the sale within a few days.
- Local Title Company – It’s easy to set up a sale with local investors because they likely have a local title company to make the sale quick and painless.
Are There Risks for Cash Home Buyers?
Most cash investors are real estate businesses who want to flip your home and make at least 10% profit.
Does that mean they won’t pay your asking price? The opposite is true. Most investors will pay cash for a house they really want to sell.
There aren’t any real risks unless the cash investor doesn’t have the money. However, it’s easy to avoid this just by talking to the investor about their funds and closing time upfront.
How Much Will An Investor Pay for My House In Forth Worth?
Let’s say you want to sell your two-story home in Collins for $340,000, which is the median price for a Texas home. Investors like to make a profit between 10 and 15 percent on any home, especially when flipping.
Will I Need to Pay for Repairs or Taxes If I Sell to an Investor?
When you decide to sell your home, you may clean up and fix a few things that are glaringly wrong with your home.
However, you don’t have to do this with a cash investor. They will typically pay for the following:
- Holding costs (taxes or maintenance)
- Any commissions when selling the property again
Investors base cash offers on after remodel value. This is the value that a cash investor hopes to get back after repairing and upgrading the home.
Most homes need repairs to pipes, flooring, drywall, and more areas. Investors typically want ot upgrade a home so that it’s at the top of the market where they want to sell.
Approach to Cash Home Offers
With any investor, you want to be careful of wasting your time or spending any extra money to sell a home. You shouldn’t have to pay extra to market your home, as it will be covered by the closing costs in the case of a real estate investor.
So here’s what the process looks like for each investor type:
- Local Cash Home Buyer – This is your easiest offer where the investor will likely purchase and remodel the home to resell at a later point. Their offer will be a real number close or even slightly above your asking price. They’ll save money by using their own construction crews for remodeling.
- Out-of-State Investors – These individuals may offer something close to your asking price, but they likely won’t have a local agent or construction crew to help remodel the home. This means they will likely try to change the offer at some point. Instead of doing that, stay firm in negotiations and ask for proof of funds before marking your home as “pending.” Also, you should be careful with any offers made over the phone without anyone viewing the home.
- Wholesale Investors – You will likely get a higher offer from a wholesaler who is looking to hook you and then change the offer at the last moment. As with any investor, you should ask for proof of funding. Most wholesalers are not the ones actually buying the property, but they will look for buyers while hooking and reeling you in. You won’t know until the end that they didn’t have a buyer all along or were always going to low-ball the asking price.
How to Calculate Your Dallas Home’s Worth
The housing market in Dallas-Fort Worth is going strong. Even with a dip in activity, real estate agents are busy, and cash investors are looking at thousands of homes, waiting for a good deal to pop up.
Is your home worth a cash offer?
The first step is to analyze your home’s worth. You can calculate the average asking price just by looking at recent housing values and sell prices around your neighborhood using Zillow or Trulia.
However, you should add in more for features that increase the home’s worth, such as a pool, brand new appliances, and other factors that raise the value.
Your asking price should be 10% above the price you’re willing to sell for as well. Most cash offers will be slightly lower than the full price.
Another way to find your value is to just talk to cash investors. Many cash home buyers will make an offer immediately. You’re not obligated to do anything even if an offer is made. The ball is always in the seller’s court in a real estate transaction.
Cash Investors vs. Real Estate Agents
If you want to take your time selling a home, you may find that you lose value if your house sits on the market too long.
Real estate agents base their reputations on being able to sell homes as fast as possible, but they are still not as fast as cash home investors.
If you are willing to wait, then go with a real estate agent. If you want to complete the sale of your home within a week, it’s best to go with a cash investor from Dallas.
Quick Summary: How Much Will Investors Pay
Keep these things in mind when reviewing offers for your home:
In Fort Worth, your home price is largely based on where it’s located. What are other homes in our neighborhood selling for? Does your home need repairs or upgrades? All of this counts towards a cash home offer.
How Much to Fix the Home
Most local cash investors are looking for homes that won’t require too many upgrades and will likely turn a higher profit. Investors will visit your property or have their contractor/appraiser visit to see what the house is worth after repairs.
Talk to Cash Investors to See Price
Cash buyers aren’t shy about making offers. If they think your home is worth the asking price, they will offer it upfront. Any “cash” investor should have no problem showing you proof of funds right away and closing within a week.
Sell Your Fort Worth Home Today
Are you trying to sell your home on your own? It’s probably overwhelming to review every offer for your home. However, if you want help getting the most money for your home, fill out our quick form or call us at 214-272-2177 to get an offer on your house TODAY!