Are you looking to sell your home?
Perhaps the property has gained plenty of value since you bought it and you want to cash in while prices are high. Maybe you want to upsize or downsize or you want to relocate to another state or even country.
Whatever the reason behind your decision to sell, you’re not alone. Every year, about five million existing homes are sold in the United States.
When the time to close the deal comes, you’ll have two options: sell your home for cash or sell to a buyer who’s being financed by a mortgage lender.
In this article, we’re telling you everything you need to know about selling your home for cash.
The Benefits of Selling Your House for Cash
Cash is king, and when it comes to real estate transactions, the same statement holds true. Here are a couple of reasons you should sell your home for cash.
Close the Deal Fast
When you set out to sell a home, you don’t want to spend several weeks or months looking for a buyer. You want to sell it as soon as tomorrow, right?
Of course, several factors will influence how quickly you can sell your home. Some of these factors, such as the condition of the house, are in your control, and others, such as present market conditions, are out of your control.
However, when you find a buyer, the mode of payment will determine how much longer your house has to stay on the market.
Cash transactions are fast. As soon as you accept an offer from a buyer who’s paying in cash, you can seal the deal in a matter of days. All you need to do is sign over the property’s title to the new buyer.
What if the buyer is relying on a mortgage loan to secure the property? You’ll have to wait longer. On average, a mortgage approval takes 30 days and there’s no 100 percent guarantee it’ll be approved anyway.
So, if time isn’t on your side when you’re selling your home, it’s in your best interest to sell it for cash.
Cut Out the Middleman
Most sellers who’re selling their homes for cash don’t typically hire a real estate agent to represent them in the negotiations. You know your home’s worth, right. Just advertise it properly and wait for offers to come.
Working with a real estate agent has its good share of benefits. For example, the home could sell a lot faster and at a price that’s close to your valuation. But you have to pay your agent for their services (usually about six percent of the home’s sales price).
When your goal is to pocket as much as possible from the sale, you’re better off not hiring a sales agent. You won’t worry about their commissions and other fees.
Sell Your Home as Is
Real estate experts will advise you to make repairs and clean up your home before putting it on the market. This is sound advice, especially if you want to boost your home’s value before selling.
However, not everyone has this luxury. Maybe you’re in a tight financial spot, so you don’t have any money to make repairs or pay a cleaning service. Maybe you just don’t have time.
What should you do?
Sell the home for cash! Most buyers offering cash for houses know that the properties are being sold in “as is” condition. They’ll make their offers with this in mind, taking into account the condition of the property.
If you have no choice but to sell the property as is, selling for cash is your best option.
You Can Stay in the Home Until the Day of Closing
Ordinarily, you have to move out of your home after putting it up for sale.
This allows for repairs and renovations, deep cleaning, and staging. Prospective buyers can freely enter the property and view it to their satisfaction.
Moving out means renting or buying another home before making the sale. Not many sellers can afford this. This is yet another big reason to sell for cash.
Cash buyers just want to snap up the home as soon as possible. Because you’re selling it as is, you can stay in the home while it’s on the market.
The Downsides of Selling a House for Cash
Selling a house for cash has some downsides too. Here are some of the biggest disadvantages.
You Might Not Get the Most Out of the Sale
Selling a house for cash certainly means you want a quick sale. You also want to sell as-is.
These two conditions don’t allow you to price the home at maximum value. Even from wanting to sell quickly alone, you could be more inclined to accept the first offer that comes you away.
Cash buyers also tend to make lowball offers.
High Risk of Being Scammed
Do you know some sellers have transferred their houses before receiving the full payment?
This is likely to happen to you when you’re selling a house for cash. Scam artists take advantage of cash sellers, especially those who are in distress. If you’re not careful, you could be pressured to transfer ownership before the money hits your account.
Always take care when selling a house for cash.
Should You Sell Your Home for Cash? Certainly!
After reading this, would you want to sell your home for cash?
There’s no straight-up answer to this. It all depends on your specific situation. Selling for cash has big advantages if you need to sell quickly, but you stand to make less money and you could fall victim to fraudsters. Evaluate your situation carefully before making a decision.
Stay tuned to our blog for more home selling tips and insights.