I had a transaction recently that was everyone’s dream, no matter which way you look at it. It sold with no mortgages involved, both buyer and seller had used cash, it was only on the market 7 days, and it closed within 30 days of listing date. The house had been completely remodeled before the sellers purchased it. New wiring, plumbing, flooring, the whole nine yards.
THE SELLER:
The sellers set themselves up for success long before they called me to sell their property. They had purchased the house at a fair price and paid for it in cash. Because they purchased within the market it was easy to price it well within the market. Paying for the house in cash eliminated a lot of extra fees like appraisals, interest, etc. They also had clear goals about what they needed to net of the sale but were also realistic about a profit that they might be able to enjoy for the work that they put into the home while owning it. When I went to meet with the sellers, I created a booklet of very recent sales of closely related properties. This gave validation to the decision for the list price.
The sellers were very thoughtful in their preparation to make sure the house was ready to market. They cleaned the carpets, and even went as far to leave fresh Glade plugins to make sure the house had a fresh, clean scent while it was sitting empty. While they were not living there, they left some furniture to show how the space looked with furniture. They did, however, remove all clutter and unnecessary items. This was especially highlighted in the closets and cupboard space. It was very easy for the prospective buyers to see how much storage space was available for their own potential belongings.
THE BUYER:
The buyer came armed with a lot of knowledge, even though they were a first-time home owner. They had done their homework and knew that the home would not only fit their needs, but it also was priced very well. The home was priced just above their budget , but that it was obvious that it was a lot of value that could not be compared to other houses at a lower price point. To even simplify the process more, the buyer was also a cash buyer. The sellers were willing to negotiate some on the price knowing that they buyer was paying in cash. This eliminated the wait for extra steps involved to secure financing and the risk that the transaction would not close due to lack of financing.
IN CLOSING:
It is very exciting to me as a real estate broker to help facilitate such a real estate transaction. I really enjoy the ability to help educate anyone I come into contact regarding the real estate industry in every way. However, this was a refreshing opportunity to see the consumers doing their own research and thought into their investment. So many times, buying a home has so much emotion involved that they look more at the house itself and not at the other factors that are involved. A house is a major investment, and often, the most important investment that people make in their lifetime. Both the parties in the above post had truly figured out their goals and had their finances in place to make the transaction be beneficial to buyer and seller. If you are considering buying or selling it is helpful to look at the what these two parties did in this transaction. Doing your homework, run the numbers, and try to the best to not let the emotions of buying a home cloud your mind. You do not have to be a cash or seller to have it be effective, but make sure to buy and sell with “cash mindset.” It is easy to ignore the purchase price and only look at the monthly mortgage payments, but this often hurts the performance of the home as an investment.
-Ashley Macoubrie, Broker
