Selling a House for Cash: Here’s Why You Should Do It
People sell their houses for different reasons. Whatever these are, there are certain advantages to selling a house for cash.
Other channels include lengthy processes in the pre-sale stage, like staging, repairs, qualifying leads, and so on. These can be complicated and time-consuming, which is among the primary reasons why many home sellers prefer to sell their homes through a realtor.
While these can ease the process, paying a realtor means you get less than what you would ideally get.
Fortunately, there is an easier way that allows you to make and keep top dollar from the sale of your home: selling it in cash.
What Is A Cash Offer on a House?
Let’s start with the basics and look at what selling a house for cash entails and how it differs from other forms of selling a home.
The first thing that comes to mind when mentioning a cash offer is the buyer showing up with wads of cash to pay for the house. While this sounds great, it is not very likely to happen.
In the real sense, a cash offer means a buyer offering to pay the total amount on the house without using external financing. Financing means home loans, mortgages, and so on.
This would mean that the buyer has saved up or has accumulated the buying cost of your home when they are making you an offer. ‘
However, irrespective of how the house is paid, the end game is that you end up with money in exchange for your home.
Still, there are several reasons why sellers prefer to sell their homes for cash. Here are the key ones.
Benefits of Taking a Cash Offer on Your House
Why is this an excellent option? Here, read five benefits of selling your house in cash.
1. An Appraisal Is Not Required
An appraisal is an objective opinion on the current value of a home. Homes are incredibly personal assets, meaning sellers are likely to bring a lot of emotion when determining pricing.
An appraiser uses specific parameters to assign a dollar figure to a house. In a traditional sale, the financier will want to protect their interests by ensuring that they get the best price on a home. Often, this means the lowest price possible.
If they have to foreclose and repossess the house, it’s in their best interest to re-sell the property to recoup their initial investment.
If you are selling a house to a buyer who’s paying for the home in cash, an appraisal is not required. All that’s necessary is if the buyer accepts to pay the offer price, or bargain in a bid to arrive at an agreeable price.
This in itself eliminates one obstacle from the selling process.
2. Faster Closing
At times, selling a home is necessitated by an urgent need for cash. Whenever this is the case, selling a house for cash is the best option.
Mortgaged sales have to go through several steps before approval and cash disbursement is done.
Further, it’s not uncommon for buyers to experience delays from their financiers or even have offers withdrawn mid-process for various reasons. The mortgage underwriting process, for example, typically takes 30 t0 60 days. If the buyer’s financial standing changes at any point during this time, the lender may cancel the offer.
Cash sales, on the other hand, are not based on mortgage underwriting. This alone shortens the purchase times and minimizes the risk of a deal falling through.
3. Less Stress
Selling a house in the traditional way is very involving. You need to clean it, carry out repairs, stage, do open houses, upgrade it and find a competent realtor.
These things are done to ensure that the financier’s appraisals and inspections go smoothly to your benefit.
Besides worrying about this, there is the additional worry discussed in the point above, where you are uncertain about a buyer getting their mortgage application approved.
A cash process allows what is known as a sell-as-is arrangement. With this, a buyer looks at the house, and you negotiate a price with them based on the house’s condition. They can still get an inspection done, but this will be to help them come up with a counteroffer.
This saves you time and the costs of carrying out expensive repairs and upgrades. The hassle of open houses is eliminated as well.
4. Save on Commission Fees
Real estate fees take up about 6% of the home’s cost in realtor’s fees. If you can sell your house for cash without using a realtor, you get to keep most proceeds from the sale.
Still, be sure to scrutinize all offers to ensure there are no hidden costs or that you understand what these are before committing to anything.
While 6% looks like a minimal figure, it could run into thousands of dollars depending on the home’s asking price.
5. You Deal With Minimal Paperwork
Traditional sales have a lengthy process, each with its own set of paperwork and processes to get through.
Reading through these is not considered a fun activity to do for most people. Further, when complex language is used, it can complicate the entire process and require an advocate. While this helps protect your interest, it costs money, which further eats into what you will make from the sale.
A cash sale minimizes the amount of paperwork to read through; append your signature, initials, or both. This is mainly because reputable cash buyers will often handle the bulk of the paperwork pre-sale.
Where to Find Cash Buyer
With the advantages of selling your home to a cash buyer, the next question becomes where to find them.
Cash buyers are often retirees looking to buy a retirement home, people that just sold their house, developers, wealthy buyers, and home buying companies.
If you are looking to sell your home and recoup most of your investment or are looking to sell it fast, consider Cash Buyers Network LLC. Call us on 1(561)-523-6982 today, and let us give you the best offer in town!