There is always talk about the real estate market, whether it is hot or cold, and whether it is a buyer’s or seller’s market. If you are newer to the real estate game, these may not be terms you are familiar with, but the real estate market can have a huge effect on what your home sale looks like.
The value of your home comes down to the condition that it is in, the location, and the demand that the market has. This is why homes were going for incredibly high prices from late 2020 through early 2022. A lot of people were relocating, and the market was booming, which allowed owners to charge a premium for their homes. At the same time, when the market slows down, the same home can drop tens of thousands of dollars in value, leaving the homeowner in a bad situation. Perception is everything for value in the traditional real estate market. On the other hand, cash home-buying companies do look at the market, but they don’t look at the condition of your home for the initial appraisal, and they are much less volatile than the market.
Selling your home takes time and sometimes it takes a long time. A hot real estate market means you could receive an offer within a week of listing your home, but you still have to go through the closing process, and this can take a decent amount of time. In a colder market, your home could sit on the market without a good offer for a month or more. Conversely, with a cash home sale, you always receive an offer in a timely manner and you can close and be done with the sale before other homes even get their first offer.
Determines Negotiating Power
As the seller, you only have the power in closing negotiations if the market is hot. If you have multiple offers, you can be pickier and the buyers are more likely to go along with what you want. However, in a cold market, you may only have one offer, and you don’t want to lose it. This gives the buyer much more power. In a cash home sale, there actually isn’t any negotiation, and you can choose your move-out date, which makes the process much simpler, and you aren’t going to be taken advantage of.
Cash home sales take a lot of the guesswork and market games out of play, which makes them an attractive option, especially when the market is volatile or you are struggling to sell. Take a look at your individual situation and consider what will work best for you.
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