In today’s market, there are more cash buyers out there than ever before looking to buy homes quickly for cash. There are many reasons to consider selling your home to a cash buyer when you put it on the market. Maybe you’re looking to sell as soon as possible, maybe you want to save some money on closing costs, or maybe you’re concerned about the inspection process. No matter what your reasoning is, selling your home for cash can speed up the process and save you money.
Why Cash Home Buying is Helpful
Regardless of whether you accept a financed or cash purchase, you’ll get paid for your home at the time of closing. So why do so many people consider cash offers better? This is because the chance that the purchase will fall through is much lower.
Cash buyers are often willing to buy houses as-is. This is especially true with investors or iBuyers. They are likely not interested in getting an appraisal or inspection, which saves the seller time and money. Since you’re not waiting for appraisals and bank approvals, the closing process can be expedited.
How Does It Compare to a Traditional Home Buyer?
When people are buying your home with a loan, on the other hand, even if they are pre-approved, there are more than likely contingencies that must be met before the final approval. The banks want a guarantee that the house is worth what the borrower is paying for it, and that there aren’t any major issues with the home before lending that much money.
Lenders require that the home be appraised to determine how much the property is actually worth. They don’t approve the loan until the house has been appraised. Even then, the house still needs to pass inspection before the loan is finalized. This means that there are multiple steps where the process can fall through between an offer and closing.
Pros and Cons of Selling to Cash Home Buyers
The main pros of selling a house for cash are the ease and speed of closing. When you get a cash offer, you will want to verify that the buyer has the funds available. Other than that, it’s unlikely that the sale will fall through before closing. This can save you time as well as peace of mind.
Another big pro of selling for cash is the option to sell as-is. When selling your home as-is, you don’t have to worry about paying for any repairs on the house out of pocket. You can also save yourself money since you won’t have to stage the house to make it look good to sell. Many investors and iBuyers will give you a cash offer within days of requesting one. Plus, sometimes you can even get offers sight-unseen.
There are some cons to selling your home for cash. Sometimes, cash offers will be lower than other offers backed by traditional financing. This is especially true if you’re selling an older or damaged home. However, it is still a seller’s market. You might also get cash offers well above asking price.
Cash buyers might be looking to take possession of the property as soon as possible. If you’ve already purchased a new home, this is perfect for you. However, if you’re still looking, this might put you in an awkward position. Having to pay to move twice is a big expense. Whether the speed of sale is a pro or con depends on your specific situation.
Should You Sell Your Home For Cash?
There’s no simple yes or no to this question. There are a lot of variables that you will need to look at when trying to decide if selling your home for cash is the right move. How does the cash offer compare to the other offers you’ve received? If you’re in no hurry to sell your home there’s no reason to take a cash offer if you have higher offers on the table.
Is your cash offer from an investor or a first-time cash buyer? Buyers who are downsizing from their last home or planning on living on the property might require all the same contingencies as a traditional home buyer.
By looking at the big picture, you’ll be able to decide if selling your home for cash is the best option. If you’re working with a real estate agent, they can help guide you through this decision-making process.