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Find Cash Home Buyers in Austin for a Fast, Simple Sale
HomeLight
Real Estate
2 years ago
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Do you need to connect with cash home buyers in Austin for a fast sale? Well, you’re in luck. The Austin area is fortunate to have a growing, active housing market. According to the “American Growth Project,” Austin ranked as the No. 2 fastest-growing U.S. city in 2022.

With so many people relocating to the Texas state capitol, there’s a need for housing – and there are plenty of cash home buyers in Austin to help sellers who need a quick sale.

In this post, we’ll look at the local cash-for-homes market, how much cash buyers pay, the benefits and process you can expect, and how to find a trusted cash buyer in Austin.

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Inside the Austin cash-for-homes market

There are many reasons driving the cash-for-homes market in Austin.

The “underlying fundamentals” include job growth, increasing incomes, a lively music scene, and the allure of outdoor activities. These attract people to the city but also drive up home and rental prices. This demand for affordable housing sets the scene for real estate investors. The state’s landlord-friendly rules and regulations further encourage investors.

But there are other factors also pushing the cash-buying market in Austin, according to Steve Hoeke, owner of House Buyers Texas. These include:

  • Out-of-state buyers flocking to Austin – particularly California sellers who cashed out the equity in their expensive homes and can afford to pay cash in Austin.
  • New construction surge contributing to competition for buyers. 
  • iBuyers see opportunity in Austin.
  • Off-market distressed homes need expensive upgrades (foundations, roofs) that owners don’t want to fix.
  • Weather events cause widespread foundation issues.
  • Competition from house-flip companies.
  • Aging population moving into senior communities/assisted living facilities.
  • High interest rates.

Regarding the impact of higher interest rates, if a buyer is already “liquid,” they might prefer to use their money to buy real estate rather than invest in the stock market, says Ross Speed, a top agent in Austin, who works with over 74% more single-family homes than the average agent in the market. “They may want to avoid the 6% interest rate of a loan by buying with cash. They can do a cash-out refi when the interest rates are lower. It’s a simple equation.”

Common types of cash buyers in Austin

According to Hoeke, there are all kinds of cash buyers in the capital city:

  • Small or family-owned house-flip companies like his
  • Flippers targeting distressed fixer-uppers
  • Post-hurricane or natural disaster property hunters
  • Beach rental investors
  • Urban condo flippers
  • Developers

Speed sees fewer investors since April 2022, when interest rates soared, but says, “Mortgage applications are going up now that inflation and interest rates are coming down.”

How much will Austin cash house buyers pay?

If you’re dealing with a cash buyer in Austin, expect an offer to be less than you’d see from an agent-assisted sale. “As a rule of thumb,” Hoeke says, “I determine the value based on 70% ARV (After Repair Value).”

Cash-for-home companies and investors often referred to this as the “70% Rule,” meaning they will offer you about 70% of your home’s after-repair value (ARV), minus their estimated repair costs. A simplified formula might look like this: (Your home’s ARV x .70) – repair costs.

However, different types of house-buying companies will offer varying amounts for homes. As our list above illustrates, there are many types of cash home buyers in Austin. There are also national iBuyers who tend to pay more than investors and “we buy houses” companies because iBuyers look for homes in better condition. An iBuyer might pay you 85% or more of market value while charging a fee for their services, often around 5% or higher.

A home’s value, and thus the offer price, can be decreased by the extent of damage – or, put another way, the cost of repairs necessary to make it sellable. “Deferred maintenance can result in a lower price,” Speed says. So can neighborhood-specific comparable sales (called “comps”) that are low.

According to Hoeke, other things can impact the amount of the offer you might receive from a cash-for-homes company, such as the interest rate. In a cooling market, prices and values can come down.

Before committing to a cash home buyer company in Austin, HomeLight suggests you consult with a top local real estate agent to get a better idea of what your home might be worth if sold on the open market. Then compare cash offers to what a top agent might be able to get for your home. HomeLight can connect you with a top-performing agent in your market.

You can also use HomeLight’s free Home Value Estimator right now to get an initial ballpark estimate of your home’s worth in less than two minutes.

Benefits of selling to a cash buyer in Austin

Although the cash offer you receive may be lower than one from a traditional agent-assisted home sale on the open market, there are benefits of working with a cash home buyer in Austin, especially if you need a fast, no-hassle sale. For example:

  • Speed: You can sell your house in as few as seven days. “It can be sooner,” Hoeke says. He has done some deals in one to three days.
  • Flexible closing date: While closing typically takes place faster with a cash buyer than with a traditional loan-backed sale, Speed points out that sellers may need to wait a little longer before closing.
  • Certainty: With a pre-offer walk-through, a cash home buyer can typically provide a firm cash offer that comes with few, if any, contingencies.
  • No repairs: If your home is in need of repairs you can’t afford or don’t want to deal with, you can skip them.
  • Less hassle: Skip showings and open houses. You don’t have to deal with negotiating offers, low appraisals, or the risk of a buyer’s financing falling through. When you work with a reputable cash home buyer in Austin, you’re likely going to appreciate a smooth experience from offer to close.
  • No additional fees: No agent means no commission. Many house-buying companies will also pay your closing costs.
  • No cleaning out: “If your house is full of junk, you don’t have to worry about moving all that out,” Hoeke points out.

What’s the process of selling a house for cash in Austin?

According to Hoeke, the process of selling a house for cash in Austin follows the same general steps as a traditional home sale, although it typically happens much faster.

  1. The seller finds a buyer (or, if the buyer is good at marketing, the buyer finds the seller).
  2. The seller and buyer agree on a price and terms.
  3.  Both parties sign a contract and submit it to a title company.
  4. The seller provides a Seller’s Disclosure Notice (Form ID: OP-H) revealing any known property defects and other pertinent information about the home.
  5. The buyer does due diligence during the agreed-upon option period in Texas (the number of days the buyer has to thoroughly inspect the property and terminate the contract for any reason: typically one to 10 days).
  6.  The buyer and seller sign the closing documents.

“The biggest difference is there’s no lender to communicate with,” Speed says. “No pre-qualifying for a loan. There’s less uncertainty.” Instead, however, he advises sellers to validate cash buyers for proof of funds.

Texas requires a disclosure notice. One of two forms must be submitted before or on the same day the purchase contract goes into effect: either the form approved by the Texas Real Estate Commission (TREC) or one from the Texas Association of Realtors, which is available to members of the organization.

Special Texas disclosures include an Oak Wilt clause regarding any diseased trees on the property. Note: under Texas Property Code section 5.008, some properties are exempt: ex., inherited and foreclosed properties.

Speed says there may be additional municipal disclosures required, based on location such as tax jurisdiction. And if the seller has made any modifications to the home’s footprint, a T-47 affidavit must be provided.

In addition to state-required disclosures, Hoeke discloses to sellers that he is a licensed Realtor.

What’s the timeline for a cash sale in Austin?

The average time to complete a cash home sale in Austin is seven days. However, “if there’s no issue with title commitment,” Hoeke says it can sometimes be done in one to three days.

How do I find cash buyers in Austin?

Finding a reliable cash buyer on your own can be overwhelming. If you need to sell quickly and smoothly, you’ll want to find a trusted Austin cash home buyer.

To get started, HomeLight’s Simple Sale platform makes it easy and safe to receive a convenient, no-obligation cash offer in Austin. The Simple Sale tool connects you to the largest network of cash buyers in the U.S.

Here’s how it works:

1. Enter the address of your Austin home.Answer a few quick questions about the property. Is it a townhome in Barton Hills or a Queen Anne in Hyde Park?

Does it need a little work, a lot of work, or none at all? How soon are you looking to sell? It could be ASAP or in six months. Our easy questionnaire makes getting set up on the platform a breeze.

2. We’ll provide an all-cash offer within a week.You won’t be obligated to accept any offer you receive. In addition, HomeLight can also introduce you to a top real estate agent in your neighborhood for an expert opinion on what your home is worth if sold on the open market. It’s good to know your options.

3. You sell your house in its current condition.No additional repairs, prep costs, agent commissions, or hidden fees. This can save you time and money. A study conducted by HomeLight found that, on average, sellers spend more than $31,000 to sell a house. This includes prep and repair costs. Fortunately, foundation issues and older ACs are often no issue. Our platform will provide a full cash offer for homes in almost any condition.

4. You can sell your house fast for cash in as few as 10 days.A 10-day closing translates as selling your home around five times faster than you would with a buyer who needs traditional financing. According to data from Ellie Mae, purchase loans take an average of 50 days to close. With a cash offer provided through HomeLight, you’ll also have the ability to pick a move date that works best for your schedule. That’s the ease of Simple Sale!

If you have the time and energy to search for cash buyers on your own, Austin real estate experts offer these tips:

  • An investor-savvy real estate agent who is active in the local investor community can help you connect with cash buyers even if your objective is to avoid the conventional listing process. Top real estate agents have networks that include house flippers and landlords looking for their next investment property, so they’ll have the inside track to finding cash buyers. They’ll also know if your home aligns with an investor’s buy-box or their parameters around the condition, price point, and location of homes they usually purchase.
  • Contact local real estate investor clubs on Facebook and other sites to locate cash buyers close to home.
  • Call rental management companies that may work for mom-and-pop investors. They might put you in touch with potential buyers who are looking for additional properties in your area.
  • Ask local title companies and real estate attorneys for referrals of reputable investors they’ve already vetted and have done deals with in the past.
  • Drive around your neighborhood to find homes being renovated. Look for dumpsters, permit boxes, or contractor signs. Talk to contractors and find out the name of the investor they are working for or if they are flipping the house themselves.
  • Be on the lookout for vacant homes in your development that are undergoing renovations. These are likely owned by flippers, so leave a note with your contact information.
  • If you need to sell in a hurry and aren’t concerned about leaving money on the table, slashing your price could be a surefire way to get the attention of cash buyers.

Selling your house for cash in Austin

When you need to sell your Austin home quickly, it can be stressful, especially if you’re facing an imminent financial demand or a moving-date deadline.

Fortunately, there are individual buyers and investors willing to pay cash for your home in Austin, although Speed says it can be difficult to distinguish between them when looking for a cash buyer. That’s why he suggests a platform like Simple Sale, where you’ll also see price estimates of what you might receive if you sell through a top local real estate agent.

Whether you’re selling a pristine Craftsman bungalow in Crestview or a Spanish Revival in East Austin that needs a major overhaul, you can request an offer from one of the trusted cash home buyers in Austin whenever you’re ready to move.

Writer Julie Guthmann contributed to this story.


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