Every year, millions of homes in the United States are sold. And though many sellers are happy with the money they get out of a successful home sale, others are frustrated with the lengthy process of finding a buyer, waiting for loan approvals, and dealing with agents.
For these reasons and many others, many Americans are opting to sell their house for cash instead of dealing with loans and the credit bureau. In fact, in LA last year, 23% of homes sold were sold to cash house buyers.
But what makes this a good option instead of the traditional method of putting your home on the market? Why would someone want to sell a house for cash?
Let’s take a look at some of the reasons why selling your home for cash might be the perfect solution:
1. It’s Less Likely That the Deal Will Fall Apart
Negotiating a home sale can be such an overwhelming, frustrating process. Many sellers find themselves going back-and-forth with a buyer until a final price can be agreed upon. And all this happens after you’ve been through the arduous ordeal of showing your home, waiting to hear back from potential buyers, answering questions, and keeping your home in immaculate shape should anyone ask to stop by last minute.
By this point, you’re ready to seal the deal, but what sometimes happens, is the buyer finds out after all this, that they don’t qualify for the loan after all. Or they might come back to you letting you know that their credit isn’t high enough to go through with the purchase.
All this can put you, as the seller, in a difficult position. You’re putting lots of valuable time and energy into trying to sell your home.
When you go with a cash deal instead, you can avoid all the hassle. With cash, loan qualifications and credit scores don’t apply, making it much less likely that you’ll have an anticipated deal fall apart last minute.
2. Forget About the Fix-Up
If you’re in a hurry to sell your home and you don’t have a lot to spend on repairs and upgrades, the idea of selling your house for cash might be appealing. Cash sales are “what you see is what you get”. So though you might be required to disclose any damages, defects, or issues to potential buyers, the idea is that it’s up to the buyer to fix these issues. So if your home needs some serious repairs and you’re in no position to take them all on, a cash transaction can be the way to go.
3. When You Sell Your House for Cash, the Process is Much Quicker
When you’re selling your home with financing involved, you can expect it to take anywhere from one to two months for a deal to close, and that’s assuming everything goes according to plan! There are some situations in which the process takes even longer.
However, with a house for cash scenario, deals get closed in a matter of days. Instead of waiting for all the financial details to come together, with a cash deal, you avoid all of the underwriting, credit checking, and lengthy waiting periods.
Cash transactions are simple and smooth and once the deal is made, it’s done.
Selling “As Is”- A Simple Choice
Buyers that are bringing financing to the table bring their bank along with them. The bank wants to make certain that the loan they’re going to grant is worth it, so they’ll be able to get their money out of it if they need to foreclose in the future.
To ensure the home’s worth, the bank will request a formal appraisal, which costs money and takes time. When you decide to sell your house for cash, however, it’s up to the buyer to look over the house and pay what they decide without the input from an appraiser.
When you eliminate appraisals and inspections from the equation, the seller isn’t obligated to make a bunch of repairs before the sale unless they decide to. Instead, it because more of a “what you see is what you get” scenario for the prospective buyer. This removes all the extra hassles for the seller.
Ditch Any Closing Costs
One of the biggest benefits of selling your house for cash is the ability to ditch closing costs and commissions. If your profit margin was already low to begin with, being able to keep that extra money to yourself instead of paying an agent is a big deal. These added costs are kicked to the curb when you sell for cash and leave all the third parties out of it.
When you accept a cash buyer, you bypass all the fees associated with a traditional sale and instead, keep all the cash for yourself.
What to Look Out For
Before you accept a cash offer, be wary of any potential buyer that asks for any kind of payment such as an “application fee” upfront.
Also, steer clear of buyers that only communicate by email and show no interest in seeing the home in person. Credible buyers should want to see a property in person before they make an offer, cash or not.
Sell Your Home Today
Now that you’re aware of some of the benefits of selling your house for cash, it’s time to contact me and let me buy your house from you. Avoid the pain of dealing with potential buyers and get the deal done quickly.