Like many people selling their homes, you could be worried about the effort and time to prepare your property for a good sale. This includes major responsibilities, from cleaning and doing repairs to staging and showing. Aside from these, you would also have other concerns, such as:
- You are not sure whether a good real estate agent will work with you.
- Maybe you prefer not to use an agent.
- The sale may take too long to complete.
- The stress associated with selling could overwhelm you.
Fortunately, cash buyers for houses are there to make things easier for you. In a way, dealing with these people comes with several benefits that you will not find in the traditional way of selling properties.
What Is a Cash Offer?
The mention of “cash offer” may create an image of a buyer showing up with a briefcase of neatly bundled cash. This scenario is great for movies, but real cash sales don’t happen like that.
A cash offer on your house means a sale where the buyer offers to pay you the entire cost of your home without using a mortgage loan or other financing options. When the buyer has the money in hand, you avoid the tedious and often costly steps of selling a house.
When you sell a property for cash, it does not matter whether the money comes from the buyer’s bank account or any other source. The result is the same—the buyer purchases your home and pays for it in cash on the spot.
Are Cash Offers Common?
According to ATTOM Data Solutions, condo and single-family house cash sales account for 21.6% of the total purchases of these properties in the US in the third quarter of 2020. The numbers were even higher in cities, such as North Carolina and Florida, with an average between 32% and 40%.
Cash offers are common in several situations, including:
- A buyer recently sold their home and is looking to invest the proceeds in another property.
- A buyer wants to gain a competitive advantage in a hot market.
- A home is a good fit for fix-and-flip.
- A property requires major repairs or serious renovation.
- An investment company or a real estate investor is looking to invest in your location.
Cash offers can occur in any transaction, at any time, and in any scenario. You must understand how they work before deciding about selling a home through this strategy.
The number of cash offers you receive depends on various factors, such as fluctuating price points and market conditions. For example, expensive properties may attract more cash offers than homes under a specific price point. When interest rates are low, buyers take out loans to offer cash for a property.
Properties That Are Likely to Attract Cash Buyers for Houses
Alt-text: a couple holding hands after buying a home in front of a “sold” sign
Every seller’s situation is unique. However, some cases make cash-only deals more sensible.
Property at risk of foreclosure
Foreclosure property owners are stuck between the proverbial hard place and a rock. They are facing eviction, bankruptcy, or a short sale, which can ruin their credit and make life harder for a few years.
A cash sale offers a way out. It helps them avoid eviction while saving their credit score and moving on swiftly to the next stage of their life.
Life changes
Major life changes, such as a new job, marriage, retirement, divorce, and even sudden illness or death, sometimes require you to make quick decisions. If you need to let go of your house due to any of these reasons, then a cash offer is your best option.
Property requiring major repairs
Maintaining an old house can be financially overwhelming. Faulty electrical systems, a cracking foundation, leaky pipes, and other types of structural damage can easily run into the thousands of dollars.
A conventional sale is almost impossible in this situation, and lenders might refuse to approve loans for damaged properties. Fortunately, those who buy houses for fast cash don’t have to take out a mortgage loan to make an offer.
For more information about this matter, read about selling a home that needs major repairs.
Benefits of Cash Offers
The traditional home sale is nothing like cash home sales. Here are the major benefits of the latter.
No appraisal
Cash sales do not require an appraisal. Traditional sales require the buyer to work with a mortgage lender. One way of reducing the financial risk is by determining that the home is worth the amount of the loan.
Appraisals determine the home value. If it is low, the mortgage lender might refuse to finance the sale, which is the main reason many home sales do not close. Cash sales take this component out of the equation, making selling an old house even more plausible.
Reduced stress
Selling a home is stressful. Apart from the preparation, you must work with an agent, deal with the inspection and appraisal, and keep the property spotless for open houses and showings. Before you forget, the buyer might lose financing or back out, increasing the number of days your property will be on the market.
Cash offers present an option to sell your home faster. Plus, the process reduces some stress that usually comes with selling property.
Less risk
Cash offers are usually stronger than traditional financing offers. When selling an unfinished house, you might be presented with several options. And, it makes sense to pick a buyer who presents the minimum risk. This is usually the cash buyer.
The deal will close faster, and you get paid sooner. By removing financing from the process, there is a reduced risk that the initial deal will fail.
More savings
An inspection during the traditional home sale process brings attention to repairs. The seller, most times, is expected to carry out the repairs or lower the asking pricing.
Cash sales allow selling your property as-is. You save money on upgrades and repairs, especially when you consider that some do not even offer a full return on your investment. And, you do not have to stress about cleaning and staging!
A solution to life’s difficulties
Are you in the middle of a divorce? Are you moving much sooner than you expected? Cash offers might avert foreclosure and even allow you to liquidate your asset faster to pay down debt.
Accepting cash offers might be the lifeline you need to get out of a sticky situation.
Other benefits
Cash sales also help you:
- Skip on marketing.
- Avoid piles of paperwork.
- Save on commission fees.
Getting Started
Cash sales offer a sound solution when selling your property. They come with a range of benefits, including lower expenses and less stress. If you are ready to explore the advantages of cash sales, get in touch with agents who have a direct connection to cash buyers for houses.
Buying and holding on to property is not the easiest of tasks. But our blog provides factual and expert advice on how to do that. Check it out today!
