So far this year, nearly a third of all residential real estate sales have been all-cash transactions. This is great news for property owners, because the benefits of selling a home for cash can be many. With no need to wait for lender approval and fewer contingencies (such as home inspections, appraisals, etc), all-cash sales tend to go much smoother and can be completed much faster—sometimes in a matter of days.
While there are advantages to selling a home for cash, it’s not the best option for everyone, and not all cash home buyers are created equal. On our website, we’ll teach you everything you need to know about selling your property for cash, including:
- How to decide if selling your home for cash is the best option for you
- How to decide the best asking price for all-cash buyers
- What questions you should ask all-cash buyers making an offer on your home
- How to use the cash you receive for your home
We’ll also explain how RVA Property Solutions is different than most other cash home buyers, and why we think we are the best option for home owners interested in selling their home for cash. If your questions aren’t answered on this website, or if you’d like to discuss your situation to see if we can help you, please don’t hesitate to contact us at 804-601-0330.
WHY SELL TO A HOME INVESTOR
There are a variety of reasons why a homeowner might choose to sell their home to a real estate investor for cash rather than listing it with a realtor. Typically, the reasons are related to the fact that a home investor can purchase homes very quickly and is usually not concerned about the condition of the home. Some of the reasons someone might choose to sell to a home investor include:
- The owner has inherited the property, and has no need for it.
- The property has not been well maintained, and is in extensive need of repair.
- The owner is facing foreclosure and/or eviction
- The owner is no longer living in the home, and doesn’t have any tenants paying rent
- The property has been on the market for months and hasn’t sold
- The property owner has an urgent need for cash for things like paying down debt, covering college tuition for themselves or a child, or relocating to another city.
Homeowners who are facing one or more of the above situations might benefit from selling to an investor, especially if they are facing several of the problems described. For example, someone who has inherited a property that has not been well maintained and has medical bills to pay would likely be better off selling their home to a real estate investor for cash than trying to list it with a realtor.
In addition to fast closing times (sometimes as little as seven days), owners who sell their homes to an investor for cash will not have to pay any commissions or fees to the investor as they would to a realtor. On the sale of a typical home these commissions and fees can top $10,000.
To find out if selling your home to a real estate investor is the best option, take our quiz.
Who should NOT sell to a home investor?
While there are many benefits to selling your home for cash to a home investor, it isn’t the best option for everyone. Real estate investors are not purchasing property to keep for themselves—they purchase property to re-sell for a profit or to rent out. Because of that, they are not going to pay full retail value for a home—there needs to be enough of a margin for the investor to pay for any repairs that need to be made on the home and still make a profit when the home is re-sold.
If you have a well-maintained home in a good location and have no time pressure to sell the property, then selling to a home investor probably isn’t the best option for you. You should list the home with a realtor or put it up for sale by owner first, and only investigate selling to an investor if the home is on the market for an extended period without any offers.
HOME SELLERS’ QUIZ
Is selling for cash right for you? Take our home sellers quiz to find out!
Think about whether you would answer yes or no to the following questions:
- Do you have more than 50% equity in the home?
- Is the property currently vacant?
- Is the property in need of repairs totaling more than 10% of the total value?
- Do you need to sell the property in 60 days or less?
- Are you facing foreclosure or eviction?
- Is cost of keeping the property (both in terms of property taxes and maintenance costs) a burden to you?
- Has the property been on the market for more than 90 days?
- If you were to sell the property for cash and invest the money you received at 10% interest, would your return on investment after the first year be greater than $5,000?
- Do you agree with this statement? Right now, this property is more of a liability than an asset to me.
- Is dealing with this property causing you emotional stress or distracting you from other areas of your life in any way?
If you answered yes to any of the above questions, there is a possibility that selling your home for cash would be a good option for you. If you answered yes to three or more of the above questions, there is a strong likelihood that selling your home to an investor like RVA Property Solutions is your best bet. If that’s the case, fill out the home sellers form in the right sidebar of this page to begin our process.
How much should home sellers expect to get when selling to an investor?
How much you get for your home when selling to an investor depends on a number of variables, including the condition of the property, the location, and the current market. That being said, you can usually expect to get somewhere between 40-65% of the full market value for your property if it is purchased by a real estate investor.
OUR CASH HOME BUYING PROCESS
At RVA Property Solutions, we take a responsible, respectful approach to cash home buying. Our unique cash home buying process is fair to all parties involved, and is designed to insure the best outcome possible for the homeowner and their community. This page describes the experience you will have when you work with us.
In our initial conversation with you, we will ask you some questions to make sure that selling your home for cash is the best option for you. This isn’t always the case, and because we have your best interests in mind, we’ll let you know if we determine another course of action might serve you better. If selling your home to an investor does seem like your best choice, we will schedule a visit to assess your property. This can usually be done within a few days and sometimes even the same day as your initial call.
During our property assessment visit, we will first answer any questions you have about the cash home buying process. Together, we will then inspect your property and go through our checklist to determine what, if any repairs we will need to make if we purchase your home. This is NOT the same as a full-fledged property inspection done by a licensed inspector, and your home can’t “fail” this assessment. We purchase homes in any condition–we simply need to gather enough information so that we can make an offer that is fair to all parties involved.
After our property assessment is complete, we will make you a cash offer for your home. Our offer includes the following information:
- The main issues affecting the value of the property, and the estimated cost to repair those issues
- The estimated “retail” value of your home, both in “as-is” condition and with all repairs completed
- An estimate as to how long it would take to sell your home at retail price in as-is condition
- The amount we will pay in cash to buy your home
Once we make an offer, you have up to seven days to accept or reject it. However, if you accept the offer at the time we initially make it, we will give you $500 immediately to help with any expenses you might have (moving, paying bills, etc). Once our offer is accepted, we will begin the closing process.
Often, we can complete the purchase of your house in as little as seven days from the date our offer is accepted. We coordinate and organize all the necessary paperwork, title searches and legal documentation. You’ll receive the proceeds from the sale quickly, usually within a day or two of closing.
With any other cash home buyer, closing would be the last step in the process. However, at RVA Property Solutions, we believe in continuing to care for our clients even after we have purchased your property. Through our carefully selected network of partners, we can offer assistance in the following areas to those who have completed our cash home buying process:
- Financial planning services
- Debt counseling
- Estate settlement services
- Moving assistance
- Home improvement & maintenance services
The last step in our process is also one of the most important. Because we believe in supporting the communities in which we buy houses, when you sell your home to us we will make a $500 donation in your name to a non-profit organization that is active in your community.
RVA PROPERTY SOLUTIONS CASE STUDY
RVA Property Solutions Helps Local Homeowner Pay for Medical Care
Losing a close friend or relative is never easy, but when complications arise in the process of settling the deceased person’s estate, it can be very difficult for those taking on that responsibility.
Richmond resident Rosa S. found herself in exactly that position when her friend passed away and she became the executor of the estate. She found herself in the difficult position of trying to sell her friend’s home, which was built in the 1940s and was in extensive need of renovation. Adding to her stress was the fact that her friend’s adult daughter was in long-term medical care for mental health reasons, and needed assistance in paying for that care. Rosa had been trying to sell her friend’s property for six months with no luck, and time was running out.
Enter Rich Lennon from RVA Property Solutions. After receiving a letter from Rich in the mail, Rosa contacted him to see if he would be interested in purchasing her friend’s property. Rich met with Rosa and together they inspected the home, at which point Rich made an offer on the property that was much better than previous offers Rosa had received from other cash buyers.
At first, Rosa was hesitant to accept because of a previous bad experience she had with an all-cash buyer who promised to buy the property in question but then backed out. However, she was reassured by the fact that Rich wanted to purchase the property himself rather than simply buying the contract to purchase the property and then turning around and selling that contract to another investor. She accepted Rich’s offer and they began the closing process.
Unfortunately, due to the complex situation requiring signatures from multiple trustees, Rosa was not able to get all of the paperwork completed by the closing date. However, Rich was able to work with the attorney handling the estate settlement process so that the transaction could still be completed.
Thanks to Rich Lennon and RVA Property Solutions, Rosa was able to use the money from the sale of the property to pay for her friend’s daughter’s medical care. Had she continued trying to sell her friend’s house via traditional methods, she likely would not have been successful. Instead, the outcome was satisfactory for all parties involved. Rosa’s story is a perfect example of a situation when selling a home to an investor is the best option, and RVA Property Solutions made the process as simple and stress-free as possible.
FREQUENTLY ASKED QUESTIONS
Here at RVA Property Solutions, we take an education-based approach to the cash home buying process. These frequently asked questions will help you understand who we are, what we do, and how we operate.
What is a real estate investor (also known as Home Investors)?
An investor is simply someone who acquires assets, lets those assets appreciate in value (or does something to them to increase their value), and then sells those assets at a higher price than what he originally paid for them. Stockbrokers do this with stocks and bonds, venture capitalists do this with businesses, and a home investor is simply someone who does this with homes.
What is the difference between home investors and real estate agents?
There are many differences between home investors and real estate agents, but the biggest difference is that a real estate agent is someone who will help you sell your house to a third party for a commission, whereas a home investor actually buys your house and then either sells it to someone else or rents it out.
Why would I sell my home to a home investor instead of having a real estate agent list it for me?
The process of selling a home through a real estate agent can take a long time, and there’s no guarantee it will even be sold—especially if it is in need of repair or renovation. Typically, people will sell their house to a home investor because they have a need for cash in the short term, or just don’t want to go through the hassle and expense of repairing a home, putting it on the market, and hoping it will sell. Also, unlike realtors, home investors do not charge fees or commissions.
What types of houses does RVA Property Solutions buy?
How do you determine the price you offer for my home?
We buy houses at between 50—65% of the full retail price. This allows us to complete all necessary repairs and renovations, and still resell the home at a modest profit. The full retail price of the property is determined by a number of factors, including age, condition, location, and current demand in the market. We always strive to offer a price that is fair for all parties.
If you buy my home, will my mortgage be paid off?
Yes. By law, any mortgage or other liens must be paid off when you sell the house. The balance of the money goes to you.
How quickly can you buy my home?
We can purchase your home in as little as seven days.
Can you buy my home if I am facing foreclosure?
Yes, if you act quickly! Many lenders would prefer to receive payment on their mortgage loan instead of taking the property. However, the sale must be completed before the foreclosure date.
SHOULD ASK QUESTIONS
In addition to questions we frequently are asked by home owners, there are some other questions that people should ask us or any other home buyer but don’t, simply because are either afraid to ask or they just don’t know enough about the real estate business (we call these “should ask questions”). Be sure to ask these questions to anyone who is interested in buying your home. With each question, we’ve included an explanation as to why you should ask it along with our answer.
Are you planning on buying my house personally?
Explanation: Sometimes, real estate investors will make an offer on a house but will then pass the opportunity to purchase the property along to another investor when the homeowner accepts the offer (without telling the homeowner). The problem with this is that if the second investor decides not to purchase the property, the homeowner is stuck with the property.
Our answer: If we are not personally planning on purchasing your home, we will tell you this before we make an offer. We want our process to be very transparent so that there is no confusion on your part.
What will my experience be like if I work with you?
Explanation: Some home investors will disappear after their offer for a house is accepted, leaving the homeowner to wonder what’s going on. This can quickly lead to confusion and frustration.
Our answer: You will receive an update from us once a week from the time you accept our offer to the time the sale of your house is closed. We also provide you with our contact information and encourage you to contact us directly if you have any questions during the process.
How can I verify that you are a legitimate home investor and not a scammer trying to take advantage of me?
Explanation: Unfortunately, as in any other industry, there are people in the real estate investment business who operate in a less than scrupulous manner. Legitimate home investors should be able to provide references and examples of homes they have purchased, and they should never use fear tactics to pressure you into selling your home.
Our answer: We are registered with the Better Business Bureau and can provide references and testimonials regarding our excellent customer service.
What is the difference between you and all the other cash home buyers out there?
Explanation: Everyone likes to think they’re special, but the fact of the matter is that when it comes to home investors, it’s often the case that one is just like the next. Given that, it can sometimes be difficult to decide who to do business with.
Our answer: At RVA Property Solutions, we take a more educational approach to the process of purchasing your home than other home investors. We want to make sure you are aware of all your rights and options as a homeowner. If we don’t think selling your home to a cash buyer is the best option for you, we’ll let you know. Also, unlike some other home investors, we are local to the Richmond area. We live in this community and take an active interest in improving it.