Depending on who you talk to, people may advise you for or against selling your home for cash. There is a lot of stigma around companies that buy homes for cash. Are they legit? Are they preying on people in a bad situation? Are they scamming sellers?
It’s a good thing to be asking yourself these questions. Houses are a considerable investment, and you’ve likely put a lot of money, time, and even love into your home. So you definitely don’t want to go into any major life decision like selling your home hastily. That being said, there are some circumstances where selling your house for cash is the right call.
If you’re on the fence about selling your home for cash, consider these six things to help you make your decision.
The Condition of Your Home
The condition of your home could be one of the most significant factors when considering whether to sell your house for cash or not. Many cash-for-home companies are willing to buy homes as-is, without inspections or hang-ups on the home’s condition. This is especially helpful for people in possession of homes in bad shape, whether they’re old or have been heavily damaged.
That being said, if your home only has minor damages, it might be in your best interest to go ahead with repairs. Sometimes putting a little bit of money into fixing up your house will help you sell it for a much higher price.
If you’re in doubt, you can do some basic research to see which option is best for you. First, work with a real estate agent to get an idea of what your house may sell for if you do the work that needs to be done. Don’t forget to factor in the money you will spend on repairs. You can also reach out and get a quote on a cash offer. From there, you can decide what makes the most sense for you, taking into account the purchase price, time, and effort.
Your Timeframe for Selling
Another common reason buyers look for cash buyers is that they’re in a hurry. For example, maybe you’ve already bought your new home, or you need to move ASAP for a new job. Or perhaps a family member has left you a home, and you want to get it off the market as quickly as possible. Regardless of your reason, cash purchases go through much quicker.
Companies that buy homes for cash can often make an offer within 24 hours of you contacting them. If you decide to move forward with the sale, then you can close in as little as ten days. Compare that with the average of 30-45 days with a traditional mortgage, not accounting for any repairs or preparation you might need to do to get the house ready.
Your Bottom Line
The condition of your home and the speed you’re looking to sell both go hand in hand with your bottom line. Are you trying to make the most money possible? Or do you prefer to get the property off your hands with as little work on your end as possible?
You should look at your available options and see which one lines up with your goals for the sale of the house. No two situations are the same, so what may be best for one person won’t be the best for someone else.
What Fees Are Involved
Not all cash buyers are created equal. There is a difference between selling your home to a person making a cash offer and a company that buys houses for cash. The main difference is the fees and costs associated with the sale.
Often, cash-for-home companies will cover or waive all related fees with the sale of the home. For example, there may not be any lawyer fees, agents commissions, or closing costs. However, when selling to a private buyer who’s making a cash offer, you’ll still typically be required for agent commissions, title insurance, and any other closing costs that are agreed upon during negotiations.
Is the Company Legit
There are a lot of companies out there advertising that they will buy your home for cash. Unfortunately, some of them are out there praying on people in a challenging position. If you’ve decided to sell your home for cash to one of these companies, it is absolutely imperative to do your research.
The best way to have faith in one of these companies is through first-hand experience with a friend or family member. Reach out and see if anyone you know has had luck selling their house for cash. If not, the second-best thing is past customer reviews. Ask for referrals from companies and look online to see if anyone has had anything to say – either good or bad.
You’ll also want to avoid any companies that are putting a lot of pressure on you. If you feel uncomfortable at any point during negations, trust your instincts. A respectable company will happily answer any questions or concerns that you may have and should not partake in any predatory practices.
What Are the Downsides?
The last thing you’ll want to consider are any downsides to selling your house for cash. Every decision you make in life will come with pros and cons. You just have to decide which side outweighs the other.
Some potential downsides to selling your home for cash might be a lower selling point. Considering these companies are accepting your house as-is and eating all the fees and costs associated with the sale, it only makes sense that they will offer less than a traditional sale might bring you.
Another downside is the risk for scam artists or predatory practices. For example, a company might make you lots of promises but then not follow through. This is something you need to consider, but with due diligence, you should be able to avoid situations like this.