Unless you’ve been living in a cave, you’ve likely seen commercials, online advertisements, or heard radio spots touting the benefits of selling your house for cash. They boast quick sales, no showings, and purchases of as-is homes and sometimes it sounds too good to be true.
If you’re considering selling your home for cash, there are some things that you need to know before you make this decision. Read on to learn more about the decision to sell your home for cash.
Who Are Cash Home Buyers?
Cash home buyers buy homes for different reasons. Some buy homes that they want to rent, some buy them to flip them (fix them up quickly and then re-sell them for a higher price), and others are iBuyers (“instant buyers”) who buy homes in good condition, put a little bit of money in them, and then re-sell them.
Ultimately, these buyers want to buy your home from you so they can make a profit off of it later.
What Are the Advantages?
If you find yourself in a situation where you are searching for “selling my house quickly for cash” you probably need the money quickly or have found yourself on the receiving end of a home that you have neither time nor desire to fix up to sell.
If this is the case, a cash buyer may be your saving grace. They buy homes as-is, meaning you won’t have to make costly repairs or clean the home up. This is especially important if you inherit a dilapidated home that needs thousands of dollars of work to make it habitable.
Cash buyers can typically close much faster than an individual buyer who is getting a mortgage. Because they don’t have to have an appraisal or go through a bank, the closing time is much quicker.
They also don’t require you to go through a staging process to get your home ready for photos or showings and you don’t have to deal with anyone coming through your home for showings or open houses.
What Are the Disadvantages?
The biggest disadvantage to selling your home quickly to a cash buyer is that you will most likely not get the price you would if you listed it and sold it through a real estate agent or listed it for sale by the owner.
The amount that cash home buyers offer is typically going to be a certain percentage of your home’s value, as they will need to ensure that they will be able to make a profit when they rent it or sell it. They may also deduct any repairs that need to be made from their offer.
Should I Sell My Home for Cash?
In some situations, the answer to whether you should sell your home for cash is an unequivocal yes. If you have to get out from under a mortgage quickly, need cash, or inherit a home you want nothing to do with, a cash home sale can help you dump the house and move on.
If you found this information useful, be sure to check out some of our other real estate articles before you go.
