There are pros and cons to selling your house for cash. On the one hand, you can close quickly because you’re not dealing with a traditional buyer. However, on the other hand, you might wait longer for buyers to come along and miss out on profits from the sale. Selling for cash can also bring home-buying companies to your doorstep, but they usually pay lower than the market value for your property. So, is selling your house for cash a good idea? It depends on your specific situation!
In today’s article, we’ll take a deeper dive into the pros and cons of looking for an all-cash offer from home buyers. Let’s get started!
Pro: You Can Close Quicker
In a cash sale, you’re not dealing with a traditional buyer. This means that the process is often quicker because you don’t have to go through a loan approval process. Cash buyers are also less likely to back out of the deal at the last minute, which can save you a lot of time and hassle.
Con: You Might Wait Longer for Buyers Willing To Pay Cash
If you’re looking for cash offers, you might have to wait longer for home buyers to come along. This is because most people don’t have the cash on hand to buy a house outright with a reasonable all-cash offer. If you’re in no hurry to sell, this may not be an issue for you. However, if you need to sell quickly, waiting for cash offers could be a problem.
Pro: You’ll Deal With Fewer Financial Hurdles
When you sell your house for cash, you have to deal with less paperwork and red tape. This is because traditional buyers often need to get a loan, which comes with a lot of extra paperwork. Cash buyers don’t have to go through this process, which can save you time and hassle.
A cash buyer can’t help you escape dealing with the title and escrow company, paying earnest money, and transferring property taxes, but they can help reduce the time it takes to close and reduce closing costs a bit so you can both save money on the sale. Cash sales are generally quicker and more streamlined, but there will still be some time and money spent straightening out the ownership and property tax paperwork.
Con: You Might Miss Out on Profits From the Sale
If you sell your house for cash, you might miss out on profits from the sale. This is because home-buying companies usually offer less than market value for properties. If you’re not in a hurry to sell, you might be able to wait for a traditional buyer who is willing to pay more through financing.
Who Usually Buys Homes for Cash?
There are a few different types of buyers who buy homes for cash.
The most common types are real estate investors who have the cash on hand to buy your house for cash to turn it into a rental property, wholesale it, or flip it. Another type of cash buyer is what’s known as a hard money lender. These buyers usually lend you the money to buy the property, and then they put a lien on the property. This means that if you default on the loan, they can foreclose on your property.
Another type of cash buyer is a home-buying company like Zillow or Redfin. These companies usually offer less than market value for properties, but they can close quickly. This is because they’re essentially flipping properties. They buy houses, do minimal cosmetic updates, take stunning pictures, doll up the description, and sell your property for a profit.
There have even been instances of these companies buying up entire neighborhoods and then jacking up the sales prices really high. They can do this because home prices are largely based on the prices of those around them. So, if you own the entire neighborhood, you can set the selling price. Unsuspecting buyers then get tricked into thinking that those homes are actually worth more when in reality, they maybe shouldn’t be listed that high.
Get Someone in Your Corner
Fielding cash offers can cause sellers to play hard defense to make sure they’re getting the best deal possible, so we recommend using a local real estate agent to list your home and guide the transaction. You should have someone on your side who knows the market and who will look out for your best interests.
If you’re in Aurora, Colorado, Tracy Alford is your premier full-service real estate agent. She can sell your house quickly and for the best price possible. Let her assess your cash offers from home buyers and make sure you’re getting the most from the sale of your home.
Is There Ever a Good Reason To Sell for Cash?
Statistically, going through the traditional sale process of listing and selling to a buyer with a loan tends to be the safest and most profitable route. However, never say never when it comes to cash buyers. Take an open-minded approach to your sale. You’ll be less stressed, and hey, maybe someone will come along who is really motivated to buy your house and who has the cash to back their motivation. It happens, it’s just a little hard to predict if it will happen to you. Hope for the best, expect the worst, and take things as they come. That’s some of the best advice we can give in real estate.
Are You Ready for a Cash Buyer?
So, there you have it! These are just a few of the pros and cons of cash sales. Ultimately, whether or not it’s a good idea depends on your specific situation. If you need to sell quickly and don’t mind missing out on some profits, a cash sale might be the way to go. However, if you’re not in a hurry and want to get the most money possible from the sale, waiting for a traditional buyer might be the better option than trying to sell your house for cash. So, what is the best way to sell your house? Cash or traditional sales? The answer is, it depends. Whichever route you choose, we wish you the best of luck!
If you’re looking for someone experienced in your local market to guide you through the home-selling process, look no further than Tracy Alford. Hiring a realtor is the best way to ensure you’re needs are met and your interests are being looked out for. Check out her website today for helpful information about your local real estate market, and to get your free home consultation.