Cash Offers in Denver Vs Selling a Home Through a Realtor
If you watch television and see all the commercials about cash offers in Denver for your home, you might be wondering, what’s the difference between selling a home through a realtor versus accepting a cash offer? Knowing the answer to this question may be one of the most important pieces of advice you can receive about the largest financial asset that you own. Many homeowners ask:
- Are cash offers for homes in Denver the better way to go?
- Can I make more money by selling the traditional way by using a realtor?
In this video, knowledgeable Denver Realtor®, Sam Wilson takes you through a simple financial model that explains the difference between selling your house to a cash investor versus putting your home for sale on the open market. While there are reasons that home sellers use both options, it’s important to understand the financial results to your bottom line before making this decision.
What’s the Difference Between Selling a Home Through a Realtor Vs. Cash Offers in Denver
Watch more videos in Sam’s Homebuyer and Homeseller playlist on YouTube.
Who are IBuyers?
If you Google “who are Ibuyers,” you will see a list of ads from companies like IBuyer, Homelight, Sincere Home Buyers, We Buy Houses, Open Door, and others. These advertisements may have you dreaming of putting large amounts of cash in your pocket by selling a home for cash in Denver.
If you follow the news, you likely heard about Zillow’s miscalculation in their Zillow Offers business. This news may have you taking a more critical eye at investors making cash offers for homes in Denver.
Zillow relied on artificial intelligence to value and price homes to avoid home showings, appraisals, and other activities that home buyers might find a hassle. An article by CNN confirmed that “Zillow took a $304 million inventory write-down in third quarter 2021 for purchasing homes for prices that are now higher than it thinks it can sell them. “
While artificial intelligence continues to fuel the IBuyer home investor industry, these computer programs often fail to identify aspects of a home that would change the valuation. And if you are a homeowner, it’s essential to have a human involved who can give you a realistic value of your home, especially in the ever-changing Denver, Colorado real estate market.
How to Evaluate Investor Cash Offers in Denver for Your Home Versus Individual Home Buyer Cash Offers
If you decide to list your home with the Sam Wilson Home Selling Team, you’ll likely get at least one cash offer from a traditional homebuyer. While cash offers are strong in today’s market, Sam Wilson and his team can help you evaluate the cash offer versus an offer from a mortgage buyer.
Investors and home flippers work off financial formulas for buying a home because they will likely flip the home and resell it or update and rent the house. You’ve probably seen homes that have been bought, remodeled, and sold in your neighborhood by an Ibuyer or investor.
Because Ibuyers expect to make repairs and updates to your home for sale, they usually offer a lower price than a home buyer looking for a place to live. While there is no exact number, home sellers who accept cash offers may be selling at a price 10-20% below market value.
Traditional buyers who offer cash may have just sold their home with plenty of equity and can pay with cash. In other situations, homebuyers may be receiving a loan or a financial gift from a family member to purchase a home for cash.
Presently in the Denver market, cash buyers of homes in good condition—meaning not needing substantial repairs—are receiving well above the market price. Home sellers with homes that need repairs are still in demand, however, these homes may not meet the financial requirements of an Ibuyer or home flipper.
Sell Today or Update and Sell Tomorrow?
A common question from homeowners is should we put our home on the market today or make minor updates and sell in a few months? This is the million-dollar question. While all predictions in Denver were for a market slowing, low inventory is spurring increases in sales prices.
If you want a realistic idea of the value of your home and what improvements might make sense to sell your house well above market price, contact Sam Wilson. He and his team will visit your home and do market research to give you practical advice and realistic recommendations for selling your home.
Working Real Estate Specialists Who Provide Home Buyers and Sellers With Peace of Mind
Buying and selling a home is a major financial decision. Unfortunately, it’s usually not possible for the average consumer to keep up with all aspects of real estate including investors making cash offers in Denver for homes.
This is why using a real estate specialist like Sam Wilson and the Sam Wilson Group gives homebuyers and home sellers the information they need to know when making one of the most critical decisions of their lives.
Get expert real estate advice from the Sam Wilson Home Selling Team and create your timeline. Work with agents who prioritize your needs and share their expertise to make the home buying or selling process as stress-free as possible. With a plan and a trusted real estate advisor, you will feel in control of the choices and the process for buying or selling a home.
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The Sam Wilson Home Selling Team specializes in homes in the Denver Metro area, including Arvada, Aspen Park, Aurora, Brighton, Broomfield, Centennial, Conifer, Denver, Edgewater, Evergreen, Genesee, Golden, Highlands Ranch, Idledale, Indian Hills, Ken Caryl, Kittredge, Lakeside, Lakewood, Littleton, Morrison, Mountain View, Parker, West Pleasant View, Westminster, and Wheat Ridge.
Contact Sam Wilson today. You can also call or text for more information at 303-770-1250.
© 2022 Sam Wilson All Rights Reserved. Articles by Pamela D Wilson
