Should I sell my house to a cash buyer?
- February 1, 2021
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Are you looking to put your house on the market? If so, you’re going to have a lot of competition.
That can be a good thing if you have the time to wait for the perfect buyer to come along. What if you’re in a hurry to move, though, or aren’t able to put in work to improve your home before selling?
Closing time for an all-cash purchase
Because a lender isn’t involved, the closing time for cash purchases can be shorter. Once you’re under contract, a cash sale can close in as few as two weeks — just enough time for the title and escrow companies to clear any liens, provide insurance, and get paperwork ready (more on that later).
Closing time for a financed purchase
The typical closing time for a financed purchase (one where the buyer is taking out a mortgage on the home they’re buying) is at least 30 days. Other popular closing time frames are 45 and 60 days, which are agreed upon by the buyer and seller, and usually chosen to align with relocation plans or another real estate purchase.
With cash sales, you don’t have to worry about making any expensive and time-consuming repairs to your home. You get to sell your house as-is, which takes a lot of weight off of your shoulders.
Most cash buyers will purchase houses in any condition too, so you don’t have to worry about being disqualified because of cosmetic or structural issues.
A reduction in paperwork. Selling a home isn’t always fun, and there’s a mountain of paperwork to wade through. The number of forms to sign, read and initial may be overwhelming, and even a minor error can be costly. However, reputable cash buyers handle the paperwork on your behalf. Not all companies offer such services, though, and if you’re working with a buyer, be sure to read their references and reviews to learn how they’ve helped other local homeowners.
When you sell your house with a realtor, there’s always the risk that something can go wrong at the last minute. For example, the buyers might not have their loan application approved and the sale could fall through.
Things like this rarely happen when you sell to a cash buyer. They often already have the money lined up and can give you cash for your house right away.
No Banks – This also has a big part to do with the speed of all cash transactions. Banks not only slow home sales down but they can often make them very messy as well.
If you were to list your property on the MLS and a buyer approached you, there’s a 1 in 4 chance that buyer would be using either an FHA or a VA loan. While these loan products are extremely popular, both have stringent property condition requirements that often require repairs to be made on even the cleanest of properties, and both buyer and seller have to jump through hoops before making it to the closing table.
(It’s almost a cliché in the industry that either the buyer or seller is rushing through the house scraping repainting everything before the transaction can close).
Additionally, since banks are involved, while the buyer may love your house and want to buy it, they’re ultimately not paying for it—the bank is. And because of this, the bank can sometimes change their mind last minute regarding whether or not they will loan the buyer the money to purchase their desired home.
This can put a seller in a state of uncertainty. Alternatively, when you decide to sell your house for cash, and once you have accepted a cash offer, you can honestly start counting your money knowing that the only thing left to happen is signing paper. This is truly a massive difference.
No Home Inspection—Except for very special circumstances, we do our own inspections and once we give you an offer we are A Okay with the condition of the property—whatever that be.
So, you don’t have to wait two to three weeks on pins and needles wondering what came up on the inspection report, what the buyer is going to ask for, whether they still want the house, and all of that.
When we give you a cash offer that’s the offer and those are the terms. No worries and no guessing.
No closing costs are required. A major disadvantage of the real estate market is the money sellers lose to commissions and fees. When sellers work on low profit margins, a real estate agent’s commission and other fees make those margins even narrower. With cash sales, however, added costs are drastically reduced. Transactions are easy and clean because the buyer doesn’t have to go through a lengthy qualification process. Because it’s an item-for-cash exchange, it’s much simpler
Sellers can decide when to move. When selling to a company like Gem Homes, an owner can remain in the home for up to a year. That allows sellers to regroup and plan a move on their own schedule. We’ll work with you to make the process easy on the entire family.
Cash offers. The biggest benefit of working with cash home buyers is that you’ll get a straightforward, transparent cash offer. There’s no need to wait for a bank to finance a buyer, and no worries about low appraisals. Finally, there’s no need to deduct a real estate agent’s commissions and fees from the sale price.