How To Sell Your House For Cash
Fast In Modesto, CA

How To Sell Your House For Cash Fast In Modesto, CA

 

If you’re a homeowner in the Modesto, CA area and you’ve been wondering what your options are when it comes to selling your home, whether that’s an investment property you just want to be done with, your personal home, an inheritance, or any other situation, you might be wondering what your options are. Most homeowners don’t usually have all the information, which can make navigating the options difficult.

That’s why we created this Ultimate Guide To Selling Your House for Cash Fast right here In Modesto, CA. 

The interesting thing about Modesto, CA is that there are tons of good real estate opportunities here. Many people (especially investors from the bay area) tend to buy here rather than in the bay because housing there tends to be so exorbitantly priced.

Combine that with the fact that there are many homeowners and renters here in the Modesto area who commute to work from the Bay Area, and you’ve got a perfect hot spot for real estate investors to acquire properties. 

And while all of this is true, having a home here in Modesto does pose some unique challenges. While this guide won’t be talking about those geo-specific problems too much, it will tell you everything you need to know about selling your home, with some insights into this market. So, with that said, let’s jump right in!

The Dilemma For Most Cash Home Buyers

Generally, three of the most intimidating aspects of selling a house are the amount of time, money and effort that must be expended to successfully complete a sale. The longer a house sits on the market, the more likely the owner is to take an underwhelming offer below the asking price, just to get rid of the headache.

To help alleviate the nuisance that comes along with selling your house, particularly for cash deals, this guide covers:

1.   Methods of Sale

2.   Factors That Affect Sales

3.   Types of Buyers

4.   Prepping a House for Sale

5.   Upkeep During Sale

6.   How to Speed Up Slow Sales

 

Methods of Sale

Methods of sale

Depending on the needs of the seller, there are multiple methods of sale that can provide the most profit or convenience:

Cash Buyers

A cash buyer will ensure that the process is quick, with no repairs, upgrades, or cleaning needed. This convenience is the biggest benefit for those looking to sell quickly. Even remaining mortgage is not an issue for cash buyers, and they often pay more than what is left on the mortgage.

 

For Sale by Owner (FSBO)

An owner who is willing to go through the work to sell their house could make good money on the sale, if executed properly. Due to the scope, nature, and regulations involved, however, this method requires experience, research, market knowledge, forethought, and preparation by the owner.

 

Real Estate Agent

In conjunction with a real estate agent, an owner can find buyers both near and far, hopefully at a price that is satisfactory for all parties. Real estate agents use their experience with pricing and marketing to show houses to several suitors.

Factors That Affect Sales

 
 

In this section, let’s discuss what factors affect the amount of time that a house is on the market, and how can these factors work to benefit rather than disadvantage the seller.

 

Location

Houses in rural areas are typically on the market longer than houses in urban and suburban areas simply due to demand. This is known as a buyer’s market, in which housing stock is greater than demand. Here in the Modesto area, there is an increasing demand due to the subtle “bedroom community” affect of commutes to the Bay Area.

We have many great schools here in Modesto, so having a home in an area with a nice school will actually affect your selling price, at least if working with a Realtor. With cash offers this is less relevant, and you will usually get a fair deal for the value of the home. Urban and suburban houses are often in a seller’s market (assuming a healthy economy and other amenities), meaning housing stock does not meet demand.

Regardless, the unique benefits should always be proudly advertised with a specific description that separates it from competitors when listing a house. For instance, a rural house should have a bullet point about “access to nature”, and follow up with a short differentiator that says, “This ranch style house is an easy quarter-mile walk from a deep stream bustling with salmon swimming upstream in June and July!”

 

Price

Market price is the best estimate of the value of a house to potential buyers based on numerous physical and mental factors. Local real estate agents will use their experience to put together their assumed market price. Online real estate sites will look at the same factors but may not have specific data to pull from, especially in remote areas.

The truly lucky sellers will get competing offers and might get a bid higher than the asking price. However, it is not uncommon for owners to lower the asking price as part of a wise selling strategy – more on that below.

 

Condition

The many types of buyers have different objectives when shopping. The cash buyer is not overly concerned about condition. Take for instance the thoughts of an older couple who is hoping to downsize: They want to avoid expensive and time-consuming repairs. This might benefit them, as no repairs are needed.

When looking to quickly sell a house, any substantial issues with structure, HVAC, electrical, or plumbing systems are a concern for most buyers. There are some buyers that are willing to take on a fixer-upper for a reduced price. It’s important to deduct an estimate of the cost of repairs from the market value. Sometimes properties are completely thrashed, or infested with pests, and will require the attention of a Modesto area pest control company.

 

Aesthetic

The “style” of a house can be a determining factor for some buyers, especially those who are designers, professional or not. The interior design of a house might be different than the exterior, complicating the definition of the house. Real estate agents might simplify this to modern vs traditional aesthetics, but it can be much more complex.

Modern houses can be subdivided into International, Bauhaus, Expressionist, etc, while traditional houses can be broken down into more familiar names like Cape Cod or English Cottage. Since not all buyers are familiar with the details, the best way to decide how much to focus to place on style is to compare the house to its surroundings.

If surrounding houses look very similar, the description of style can be as simple as “traditional” or “modern”. But if the house stands out, or was designed by a renowned architect, or has an interesting history, the added detail might just be the X factor for potential buyers.

 

Economy

Ironically, rising house prices encourage buying while sinking house prices lower result in less construction and lower consumer confidence. The economy and housing market are closely linked, as the Great Recession proved.

 

Luck

Regardless if it’s a seller’s market or buyer’s market, there is an element of luck in the right buyer coming along at the right time. But as the old saying goes, “Luck is what happens when preparation meets opportunity.”

By marketing with several methods, the house’s visibility increases, meaning that a buyer has a better chance of finding their perfect house. Word of mouth and flyers should not be discounted because of internet postings.

 

Ability to Expand

A young couple might be willing to start with a small house, knowing that a future family means a change in living situation. That could mean moving, but it could also be an extension of their original investment.

A rural house on several acres likely has no issue expanding unless significant earthwork is required. This is a great tag to add as part of the description of a property.

Suburban and urban houses are more likely to run into expansion issues, such as zoning codes that limit the maximum buildable area. Understanding if there is room for expansion on smaller properties can be used as a selling point to buyers who are thinking long term.

 

Yard

One of the many reasons that buyers move out of the city to urban or rural areas is to get some fresh air. Don’t skimp on photos of any outdoor space or views that will market well to city dwellers.

 

Walkability and Public Transit

Generally a built-in bonus of urban areas, walkability and public transit are draws for people conscious about the cost and environmental impact of driving. A walkable area is about one square mile and has some of the following features:

  • A center gathering place, like a square or main street.
  • Enough people to encourage business and public transit.
  • Mixed-income families and mixed-use buildings so that affordable amenities are spread out.
  • Public outdoor spaces for play and relaxation.
  • Pedestrian-friendly streets with a consistent, limited building setback with parking in alleys or parking structure.
  • Schools and job opportunities nearby.
  • Streets that cater to vehicle traffic, bicycles, and pedestrians.

 

Types of Buyers

Cash buyers are significantly different from buyers who plan to reside in the house, in terms of what they pay and what they expect. But don’t forget that residents vary widely as well:

  • A couple might look for room to expand if their family grows. Advertise the ability of the house to grow as needed for small families.
  • A big family needs several spaces. By keeping rooms absent of personal effects and without an overabundance of furniture, a family is more likely to interpret the house as they need.
  • A couple who is downsizing is looking for ease of maintenance. The deficiencies that a home inspector finds should be addressed to appeal to this demographic.

An advantage of cash buyers is that they are the ones who eventually have to be concerned about who will reside in the house and advertise properly.

Prepping a House for Sale

 
Preparing a house for sale in Modesto, CA
 

One of the major benefits of working with a cash buyer is that you won’t have to do any of the extensive and expensive prepping that comes with traditional sales such as using a Realtor. If you do decide you’re going to be working with a Realtor, it is wise to begin prepping the house for marketing and sales.  Considerations are the the added time on the market, but also the improvements. Any expensive improvements should consider the return on investment (ROI). Before looking at those ROI opportunities, take advantage of the low-hanging fruit that appeals to all most market buyers:

  • Hide the majority, if not all, of family photos so visitors can easily imagine their family in the house. By having all of your family photos there, it doesn’t really become “real” to them that they’re the owners of this property, and that could impact your likelihood of a close.
  • Store a majority of personal effects, up to one-third according to some real estate experts.
  • Clean, clean, clean! All exposed surfaces should be cleaned; pay special attention to kitchens and bathrooms since anything deemed unsanitary will stick in a visitor’s mind. Don’t forget cabinets and closets, since buyers frequently open up any unlocked storage.
  • Ensure that cabinets and closet doors are in good working order, not squeaking, and staying closed when closed.
  • No matter the current design trends, the best color palette consists of lights and neutrals. Light colors reflect light, brightening spaces and making them appear larger than dark spaces. Neutrals provide a canvas for buyers to project their interior design ideas.
  • Curb appeal is the appearance of a house from the outside, the chance for buyers to judge a book by its cover. Some inexpensive ideas include:

·         Making sure exterior lights work
·         Keeping the lawn mowed
·         Trimming bushes
·         Fixing/painting fence posts
·         Updating the mailbox
·         Adding window flower boxes

  • Additional curb appeal adjustments that come with a greater expense include:

·         Upgrading door hardware
·         Painting exterior doors
·         Adding exterior seating
·         Adding potted plants on the exterior
·         Painting window and door trims
·         Updating house numbers
·         Resealing gravel driveways
·         Hide garbage/recycling or HVAC units

 

Structural fixes

Since responsible buyers hire home inspectors, it is wise to get ahead of buyers and find issues before they do. A home inspector is trained specifically to report on the condition of a house and point out any major defects.

The inspection is non-invasive and makes no guarantees about the future health of the house. Some inspectors offer a “move-in ready” certification so that buyers know there are no major defects, however buyers will often still have one or more inspections done. There is a wide array of more specific inspections. Some are required on a state-by-state basis, while others might be a wise decision based on the house’s surroundings or condition:

  • four point inspection is for HVAC, electrical, and plumbing systems and is wise for homes with equipment at least twenty years old.
  • pool or spa inspection will give peace of mind that there won’t be expensive maintenance required.
  • tree health inspection is good for properties with several large trees, especially with trees that could cause damage to a house. And since foliage is such an appeal, ensuring that none of the trees are spreading disease is a smart decision.

Major failings of a house will make them incredibly difficult to sell. While it’s a big investment, fixing structural issues will ensure that the house is not on the market for an exorbitant amount of time.

While it’s possible to deduct the cost of repairs from the market price, the hassle will be unappealing to most buyers. However, cash buyers are likely to overlook structural or HVAC issues.

Cosmetic changes

Cosmetic changes are unlikely to lead to a positive ROI, but do have the potential of shortening market time. The 2019 Cost vs Value Report provides an interactive map that compares the ROI of 22 common remodeling projects.

These samples can be sorted by cost, resale value, and ROI, providing helpful insights into common trends across the country. Keep in mind that costs will vary at the local level due to material and labor costs.

The only two projects with ROIs over 90% are a 4-section garage door replacement and replacing the lower third of vinyl siding with stone veneer. Both of these upgrades boost curb appeal, the exterior amenities that draw buyers in from the street.

Other investments in curb appeal include

  • vinyl siding replacement, especially damaged or dirty vinyl
  • Installing a grand entrance (a wider door with glass sidelights)
  • Adding an exterior deck
  • Roof shingle replacement
  • Adding a stone patio.

 

Get professional photographs

Don’t let the convenience fool you. Given the power of phone cameras, some might find it unnecessary to get professional photos, but they make a huge difference on flyers and web sites, and ultimately, in sales. A house might be beautiful, but appear small, dark, and dirty in bad photos. By investing in a professional photographer, you can make sure your listing looks it’s best.

Professional photos will run a few hundred dollars, which is a worthwhile investment if it means there is a reduction of weekly/monthly upkeep costs. And the sooner more potential buyers are making offers, the less likely the desire to lower the asking price.

Storage

There are only so many belongings that can be sold, donated, trashed, or neatly hidden in the house. If possible, consider paying for a storage unit so that possessions that aren’t needed every day can be moved offsite.

There are great services like U-Haul’s U-Box or PODS that will deliver large storage containers, pick them up when ready, store them as long as needed, and then deliver to the next address. Coupled with movers, the struggle of moving is drastically reduced. The storage containers can also be made available during their stay at the storage facility in the event something needs to be retrieved.

Upkeep During Sale

One of the many reasons to sell quickly is the upkeep costs of an unoccupied house. If the house is already vacated but not sold, maintenance work is still required and bills still must be paid.

Mortgage bills, if they exist, are the obvious cost that continues until sale, but it’s easy to forget other upkeep that keeps a house functioning and appealing. 

The yard will need to be kept up for curb appeal, which takes time or the expense of hiring a landscaping crew. Heat and air conditioning maintain comfort for visitors; a cold or hot space will leave a bad impression for potential buyers, no matter how unfair that seems. 

Frozen pipes would be an absolute disaster, so the water heater must be kept on in cold environments. The cost of repairs and lost marketing time would be a devastating blow to profits. 

Some real estate agents require that utilities are in working order and bills paid, refusing to complete a transaction unless delinquent bills are taken care of by the seller. Some appraisers will not finalize their review of a house unless utilities are turned on. 

Routine walkthroughs are also needed to prevent squatters, termites, rodents, and mold. Ideally, a house will be sold before such issues arise, but keep in mind that squatters in some cities have legal protections. Termites and rodents can cause structural damage if not caught early enough, and even a hint of them could be an easy way for buyers to nix the house off their list. 

If it’s not possible to personally walk the house, a property manager can be hired for walkthroughs and maintenance. Add that fee to the list and monthly costs are quickly becoming significant. Since most forms of home insurance will be voided if a house is unoccupied for more than 30 days, a completely vacated and unmaintained house will alert the insurance company that the contract has been violated and will not honor any payments in the event of damage.

To play it safe if the house is truly empty for an extended period of time, purchase Unoccupied or Vacant insurance.

How to Speed Up Slow Sales

Unfortunately, traditional methods of selling a home can take significant amounts of time, especially if you need to get out quickly. It’s possible to have a very fair market price and to not find the right buyer. Before lowering prices, it’s best to make some of the efforts that have been overlooked or double down on existing strategies.

Since the number of viewers decreases with each passing week, it makes sense to treat low turnout at the outset quickly. If neighboring houses all have lower asking prices, there was no appraisal from a professional, or zero offers have been made, it might be time to lower the asking price.

buyer’s market, a larger inventory of housing stock than demand, is another possible cause of slow sales. It’s difficult to sell without lowering the price, so if possible, the house should be taken off the market until a seller’s market emerges.

While markets vary due to many factors, a strong economy encourages consumers to spend and take on debt. This lays the general groundwork for a seller’s market, but there are micro issues at play as well.

Spring and early summer have a lot of demand for housing compared to late summer and fall, so this is a good time to consider listing. Even the day of week can play a factor – midweek is the best time for sellers to close a sale. Monday and Friday tend to sell with a discount, perhaps as sellers look to free up the weekend or be able to focus on work for the week.

In urban areas, job availability, cultural popularity, and physical limitations are strong factors; consider the costs in San Francisco in recent years. It is THE home of major tech companies, which attracts a large swatch of young tech workers (although not all residents are excited about that). The city has a distinct and vibrant culture, but it is restricted from sprawling due to geographic limitations. The cost of living has skyrocketed, and this would definitely be considered a seller’s market.

This is one of the reasons Modesto home ownership makes so much sense for these residents to commute, provided they can afford the time, but not the expense, of living in SF. The other surrounding suburban areas of Oakland, Richmond, and South San Francisco are also seller’s markets as buyers are willing to trade a longer commute for lower prices. During the same strong national economy, rural and suburban areas surrounding dying industries have limited buyers. Think of the struggling auto industry of Detroit, or the coal mining towns that are no longer mining coal.

In cases where a seller’s market seems an unlikely or distant future, cash buyers can come to the rescue, and will be able to pay the full offer amount within days.

How to Sell Your Home for Cash Fast In Modesto: Conclusion 

Some realtors like to say, “Location, location, location” when it comes to sales, but it is much more complex to that. The price of a house shouldn’t be too low (a loss of profit) or too high (a longer time on market). 

FSBO houses can improve profits since there is no professional to claim commission. Due to the time commitment of FSBO, it might make sense to work with a local or online realtor whose expertise will relieve headaches and shorten market time. Real estate agents and cash buyers will take care of the effort that distracts from a busy seller’s daily life. 

By catering to a diverse group of buyers, prepping the house for visitors, and marketing with your local network and online presence, a house can be sold in less than the national average of five weeks. If five or more weeks seems like too much stress, investigate how a cash buyer might be able to help.

Use these tips to strategize your timeline and process for an easy and profitable home sale!

Your cash offer real estate expert agent - Seth Choate.

Seth Choate is a Real Estate Professional from Turlock, CA who’s obsession, beyond helping the community find homes and deals that best fit their situation, is becoming his best self. He enjoys challenging himself with 5K runs, and finding new ways to exhibit infinite love for his beloved wife and children. A man of faith, Seth believes that good things come to those who work hard with honesty and put integrity first.

Check out some of these recent Modesto sellers who we’ve helped by purchasing their property to get them a fast cash close!

I’ll get you a fair cash offer in 24 hours or less, guaranteed.

Seth Choate, Valley Cash Offers
DRE Agent Lic. #01941015

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Valley Cash Offers provides Central Valley real estate owners, sellers, and investors with a professional, personalized experience from start to finish, providing cash offers for houses, with no closing costs, no commissions, no surprises, and no compromises!
Seth Choate | DRE Agent Lic. #01941015

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