Advantages of Selling Your Home to a Cash Buyer
There are a lot of advantages and very few disadvantages to selling your home for cash. First of the pros are convenience and speed of sale. When you have accepted a cash offer, you can typically receive your money in a matter of days. For people facing foreclosure, bankruptcy or relocation, this can be an instant lifesaver.
Less Sales Fall Through
Also, a cash sale eliminates the familiar drill of accepting a buyer’s offer, only to lose the deal at the last minute because they could not qualify for a loan. There will be no backing out or last-second cold feet once the cash has been paid. Cash sales generally close in just one to three weeks, while it takes about four to seven weeks to close a conventional sale. Cash sales are also often “as is,” so there’s likely no major job needed.
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Asking for Professional Advice
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While you shouldn’t skip professional representation in a house sale unless you actually know what you’re doing, there are certainly less possible complications in a sell-by-owner cash deal scenario. However, if you don’t work with an agent, it will be up to you to price your home correctly to prevent bottom-feeding cash investors or buyers from jumping in for substantially less.
Therefore, you have to get an appraisal and do a bit of additional research on your own. Use various listing services to compare prices and view price adjustment records on houses within the same area, as well as time-on-the-market statistics. The appraiser usually performs a minimum of three computations based on recent sales, but you can explore more data so you can be enlightened further.
There are quick-sale real estate agents you can depend on for paperwork, doing most of their work via email or phone to fast-track transactions. They will either charge a flat or fixed fee or collect a lower-than-average percentage commission. But as their job is to sell as fast as they can, they can propose a listing price that is much cheaper than what is offered in the conventional loan market.
That cash buyer is a good prospect, you must ensure they do have funds – look for evidence! With a lot of cash buyers planning to repair and resell such properties, you can explore working out a short-term lease-back deal for you to remain in the house if suitable for you, and give the new owner an income stream while they take care of the repairs or other projects.
Indeed, in the world of real estate, cash is king for the seller. You may get a little less money out of the house like this, but you can reduce repair costs and other problems while enjoying convenience, speed, less documentation and less stress along the way.