Not every house buyer is the same, nor do they have identical goals, needs and budgets. Selling your house successfully using a house buyer depends largely on targeting the right type of buyer. This eases stress and can even help streamline the process from start to finish.
Here are five types of buyers to be aware of as you plan your next move – figuratively and literally.
5 Types of House Buyer
- The Window Shopper
When someone visits car lots and dealerships, browsing with no intention of purchasing, we call them ‘tire kickers.’ You will find tire kickers in the real property world as well! We hope they’re not literally kicking anything, but the point is that they would like to move house – somewhere, sometime. They have no specific plans to proceed; rather, they are essentially window shopping.
You want to avoid this type of house buyer! While they are wandering around viewings, making absurd low ball offers and generally being difficult to deal with, they are above all wasting your time. Show them the door, and encourage them to use it posthaste.
- Traditional Buyer
This is a buyer who is looking for a home and does have a plan in mind. They may be older people who are downsizing or a growing family who needs larger accommodations. They may need to relocate for work, school or family reasons. They have planned, saved and been pre-approved for a mortgage. This tends to be what ‘traditional’ means in terms of house buyers. They do not typically have the cash on hand to make a purchase and need to rely on a lender.
Because of this, any home they purchase must meet the standards and criteria of their lender. Thus, if your house has seen better days or perhaps needs some rather extensive improvements and repairs, their lender may not approve financing. This can put you in a pickle as the seller, especially if you do not have the funds to make these changes.
A traditional sale with a traditional buyer can also be a lengthy process; it takes an average of four to six months (or longer in cooler markets or buyer’s markets) to reach completion. You may have the money to make repairs and improvements – but do you have the time?
- Fix It and Flip It Buyer
A fix it and flip it buyer is one who specialises in rehabbing properties that are in fair or poor condition. They are looking for a bargain and tend to make lower than market offers. After they complete the sale, they get to work on repairs, improvements, upgrades and updates in order to make it attractive and suitable for those traditional buyers. Their goal is to minimise their expenses and maximise their profits.
- Buy to Let Investors
These investors are looking for properties that they can convert into rentals, whether whole-house or by breaking it into flats or units. Like house flippers (and anyone, really!), they are looking for a bargain, so that they generate as much profit as possible.
- Cash House Buyer
A cash house buyer is an appealing option because… cash. As they say, it is king. When you need to sell your house, especially on a tight timeline, this is particularly true. A cash buyer has the resources necessary (and on hand) to complete transactions on tight timeline. Typically, it takes just 7 to 21 days. Every step of the process, from instructing surveyors and solicitors to handling paperwork, is done by the buyer. This frees you from enormous cost and hassle. You are in complete control with the freedom and flexibility to accept or decline offers without binding yourself to onerous contracts or obligations.
A cash buyer will typically offer between 80 and 85% of total market value. Factor in the expenses and costs you do not have to shoulder as well as the time you gain by completing a sale in just days. Additionally, unlike traditional buyers, cash buyers will purchase houses that are not in good condition. This takes the significant cost of improvements and repairs off of your shoulders as well. They are motivated, ready and able to purchase quickly.
Which type of house buyer is right for your home? Explore your options to experience a much smoother process.
