Truth or Myth?
When selling your home a cash offer is the best way to go?
Two of the greatest desires when selling your home are not only to ensure a sale but to capture the highest price. A myth has been created that if you take a cash offer you will achieve both of these goals. This has been failing lately and let me explain why.
But 1st some context has to be given. Let’s take San Joaquin Hills.
Over the last 25+ years, 70-80% of SJH homebuyers were traditionally the move-up home buyer. Families wanting to raise their kids in a stellar community with certain amenities for about the next 15+ years of their kid’s upbringing are again normal.
However, like life, many things change:
In San Joaquin Hills- YTD 50% of all closed sales have been purchased by investors and 40% from the traditional owner-occupied buyer. WOW! I can go into many many reasons why this is happening but that is a different video.
Back to my original question:
1st. Many homeowners (agents alike) feel impressed with the allure of an investor’s all-cash offer. It is strongly presented to you (the homeowner) with grounds for you to accept this offer because It will be easier, it’s a good price and minimal problems.
The missed opportunity is when you overlook a move-up family that is putting 20-30% down payment, underwriter approved and all their financing is in place, they are as good as gold.
Why is this a missed opportunity?
For over 34 years I work with both investors and move-up homebuyers, I am an investor myself. Investors are taking their cash from one place into another place with a focus on a better ROI. Normal
Move-up home buyers are focused on your home, fine finishes, lifestyle all the intrinsic value that will be benefitting their families over the next 15+ years.
Which group (when presented properly of course) do you think usually is willing to pay you more? Absolutely the move-up family!
I can’t stress enough, they don’t do this carelessly they do it because the focus is on the long-term ROI that will come both financially and emotionally.
If you plan on selling your home in the next 6 months don’t overlook the move-up home buyer. When positioned properly you will ensure a clean sale and capture the higher dollar!
If this strategy resonates with you I would love to hear your questions or thoughts,
Until we meet take care.