(WIVB) – If you are looking to get a piece of the American dream, you know the real estate market right now is red hot.
Buying a home can be frustrating, but selling your home can sometimes be difficult as well.
What is the difference between those who are posting a “For sale” sign and those who are offering to buy for cash? In most cases, the seller is represented by a licensed realtor and the cash buyer only needs cash.
“These types of homebuyers do not need to be licensed, they don’t need any kind of insurance,” said Melanie McGovern from the Better Business Bureau of Upstate New York. “They are like a typical homebuyer, when you buy a house you don’t have to go out and get those things.”
The offer of cash without going through a bank might be tempting, but the homeowner still needs a true, independent assessment of their property value.
“Any time you are selling your house you want to make sure you know all of your rights, you want to make sure you know the process inside and out,” McGovern said. “Not a lot of people do, not a lot of people realize that sometimes it can take up to 45 days for a house to close.”
In the real estate industry, they are known as “Opportunity businesses”.
They post signs offering cash and a quick sell, or send postcards or letters offering cash for houses as is, where is, any condition and a fast closing without stress.
“Whether it is purchased with cash or it is purchased with financing, or money from savings, the seller always gets cash at the closing table,” said Amber Wesser of the Buffalo Niagara Association of Realtors.
Wesser recalled a homeowner who received several postcards with eye-popping offers for her home – then her attorney directed her to a realtor, who listed the house for double the price.
“That is a huge amount of money, that is a huge difference, from $90,000 to $185,000, a lot of money she could have been leaving on the table for herself,” Wesser said.