Cash buyers expedite the real estate sales process. There aren’t pending mortgage contingencies or potential qualification problems. Cash buyers are experienced buyers who don’t freak out at every little inspection turn.
While a cash buyer may happen upon the “for sale sign” or Multiple Listing Service (MLS) listing, marketing specifically to cash buyers takes some target marketing.
Be prepared; cash buyers are usually investors. They want a deal to fix and flip or rent. They need to make a profit. As such, investors seek properties at wholesale prices: 20-40% or more below market value. If you aren’t prepared to drop the price, you’ll dissuade cash buyers. Don’t be a pushover. But be flexible in price and terms when marketing to cash buyers and investors.
4 Ways to Market Your Property to Cash Buyers in NYC
1. Advertising to International Markets
Investors are in all parts of the world. Chinese, Russians and Middle Eastern investors like to invest in this country too. Most make cash purchases. Many deals are completed without the buyer ever visiting the location prior to closing.
Find a brokerage with an international division. International investors often look at high-end real estate markets such as New York, Florida, Hawaii or California. That being said, if your property in [market city] has the right mix of desirability, you may find the right international investor ready to buy.
International investors often pay market or near-market value rather than wholesale prices. Obviously, this is good for your bottom line.
2. County Court House Auction
The county assessor’s office has a list of foreclosed properties delinquent on property taxes. When the county holds its auctions, cash investors buy fixers to flip. This can be a great place to market your property to cash buyers.
The auction tactic requires an outgoing personality and you have to be willing to approach strangers. Foreclosure auctions are intimidating for any newbie. People are there for business: to win the property on their list. But if you can make a few friends and capture contact information along the way, then you can build a list of buyers accustomed to paying cash and moving fast. They obviously aren’t intimidated by problem properties either, so that can be a plus.
3. Real Estate Clubs
Find a local real estate club. These are groups of people who network, educate and invest together. They are always looking for good investments, especially close to home. Send an email to the director, asking if you can attend the next event.
Meet as many people as possible and let them know about your property. Invite everyone to an open house or private showing. Even if members at the meeting aren’t looking for a property at that moment, they most likely have a few colleagues in other real estate clubs to happily share new opportunities with.
4. Discount the Price
Cash is king and cash buyers know this. Setting a property price at wholesale prices gets every buyer, cash and lender-backed, coming out in droves. That being said, if you really want the cash buyers, marketing the property at wholesale prices catches their attention with MLS and other online real estate listings.
Even before the house goes on the market, send the preliminary listing information to local real estate brokerages. Many realtors maintain databases of investors who use realtors as their eyes and ears for potential quick buys. Getting in on a property before it hits the listing services (a pocket listing) means they have control over the deal without added market competition and chaos.
While any marketing may generate interest from cash buyers under the right circumstances, these 4 ways to market your property to cash buyers in NYC can probably do it faster. Target international real estate brokerages, real estate clubs and auction sales to locate buyers. Then list the property at the right price investors can’t resist. With enough cash buyers, you may get a few offers higher than the traditional wholesale price.
If you are looking for investment properties in NYC, give us a call at (914) 559-2579. We have a steady flow of new properties coming in but they usually sell fast. Additionally, you can fill out the form on our website and we can send you new listings as we get them.