You’ve seen the signs on almost every street corner and highway exit: “Buying homes for cash in Montreal.” Some of these signs look professional, others are handwritten, then stapled to a post. Some cash home buying posters advertise that they buy homes as is, in any condition, and that they offer a competitive price. All in cash.
If you want to sell your home, this may seem like the perfect opportunity to sell quickly, without the headaches, preparations and viewings.
Is buying homes with cash the solution for you?
The Montreal cash home-buying program
The individuals and companies displaying these signs are investors looking for properties they can buy quickly, and which are undervalued to make a profit. The purpose of placing these ads is to ‘lighten the load’ of searching for distressed properties, and to attract the attention of owners looking to sell quickly.
They mainly target homeowners who find themselves in an unfavorable financial situation. These include people facing bankruptcy or financial recovery, health problems or divorce, or who have a damaged or completely dilapidated property. They also hope to find homes whose ownership is tied to an estate, vacant dwellings, and even properties currently advertised by an agent, but whose contract is about to expire.
The thought process behind the offer
Because investors are looking for properties with which to make a quick profit, they want to do 
business with motivated sellers who own homes that can be quickly refurbished for resale. And this is certainly the most advantageous point when selling to an investor. The buyer is looking for quick relief. He knows you have an emotional stressor that requires a quick sale.
As a result, their offer could be to pay what you owe on your mortgage, regardless of the actual value of your home. Most of the time, investors want properties at wholesale price, which is at least 30% below fair market value.
Think about your position before you negotiate
Don’t forget that home maintenance costs money. All mortgage payments, insurance costs and property taxes must be paid for as long as you own your home. The longer you delay the sale, the more you spend on utilities and home maintenance.
Do the math, then consider the average time it takes to sell a home in your real estate market. If you sell your home at the average price, will you be able to offset the home maintenance costs generated by the extended period?
It may also be urgent to sell because of an imminent financial recovery or a need for liquidity. Take all these factors into account when evaluating an offer to purchase.
Optimize the value of your sale
You don’t have to do a lot of research to find out the fair market value of a property. If you really want to know, pay a couple of hundred dollars for an estimate or simply talk to a local real estate agent. It can give you an idea of the value of your home in its current state.
Once you know what your home is worth in the current market, think about what can be done quickly and inexpensively to improve the property and thus increase its value.
Do what investors would do. Clean the house, inside and out, and make sure windows and screens shine. Remove weeds and prune trees and bushes. Replace the entrance carpet, tile the bathroom and kitchen and repaint the interior and exterior of the house.
Investors often redo the kitchen and install a new set of appliances, allowing them to make a substantial profit on the home obtained at 30% below market value. You don’t have to do this, but if you have the time and money to do it, the investment may be worth it.
At the end of the day, if you can afford to wait a little longer before selling, you can wait for a more traditional buyer to come along and make you an attractive offer, which will put more money in your pocket.
