Ready to sell your home? Regardless of the listing price, you may prefer a cash offer in today’s strong seller’s market. A Realtors commission is around 6% of the sale price. This means you could be losing thousands of dollars out of your home equity.. But are cash offers better for home sellers?
Why is it better and what does it mean to sell a house for cash?
If a property is sold for cash, it means that the buyer paid for the asset upfront without a mortgage. Selling your home for cash without complicated financing procedures greatly simplifies the home buying process. Cash offers are typically considered for run-down or damaged properties in need of repairs that are significantly less valuable than refurbished houses.
Selling a house to a cash investor can save a lot of money in repairs, commissions, unforeseen costs and closing costs. Generally, closing costs will be much lower on a cash sale, which can save the seller a considerable amount of money.
Why a cash offer may be better than a financed offer:
There are many reasons why cash offers appeal to home sellers.
- No Realtor Commission
As stated in our introduction, Real Estate industry standard dictates that realtors receive around 6% of the sale price as commission. Selling directly to a cash investors allows the seller to avoid this cost.
- Avoid The Hassle Of Selling – No repairs & no showings
If you sell for cash, you can avoid organizing, cleaning, staging and scheduling showings. Sellers sometimes inherit property from out-of-state relatives, making it difficult to be there in person to prepare the property for the sale. In these circumstances, accepting cash offers rather than selling the traditional way will make things a lot easier and faster on sellers who don’t have time to travel or stay somewhere to deal with preparing the home for the sale.
- A certainty in the sale going through & Faster process
With cash investors, there is no third party involved in the decision making, the buyer either has the money or they don’t. Even preapproved home buyers must obtain mortgage approval before underwriting. This may take 45 to 60 days. Cash transaction can take as little as a week depending on the cash buyer.
Mortgages always carry the risk of a failed transaction. Cash payments ensure that this does not happen and allow the buyer and seller to complete the transaction as quickly as possible.
Sometimes, you just want or need to sell a home and move on. In the event of a divorce or sudden job change, the seller probably won’t have time to dedicate to preparing and selling their home. Cash offers eliminate much of the waiting time and additional costs of the traditional selling process, so you can sell much faster this way.
- Fewer unforeseen issues.
Home Cash buyers do not require appraisals, a home inspections or other contingencies that force sellers to make advance payments for non-guaranteed sales..
- You’re Experiencing Financial Difficulties – Avoid Foreclosure
Perhaps the most widely known reason to sell for cash is financial difficulties. Many homes sold for cash are homes that the seller cannot afford to upgrade or renovate for a traditional sale, thus giving for-cash homes their fixer-upper reputation.
Selling your home for cash is a great option if you are struggling financially or cannot afford to renovate your home for sale.
If you’re late on your mortgage payments with no hope of catching up, the foreclosure is not your only option. You can sell your house to a cash buyer and avoid the negative effects of foreclosure or a short sale. While this may not be the most optimal way to sell your home, it can be a great option if you’re at risk of moving toward foreclosure.
Selling Houses For Cash May Become The Next Big Thing
In many ways selling your home for cash saves you both headaches and upfront costs.
Interest rates are going up, housing prices are falling, the best time to sell is now!
Selling your home for cash isn’t just reserved for homeowners trying to get rid of homes with major structural issues. Taking cash offers can be a great option for those looking to sell quickly, get paid and move on.
