Sometimes, homeowners need to sell their houses fast. Whether it’s due to a job relocation, a looming foreclosure or simply needing to get rid of an older or second property, selling a house -especially in the hopes of selling to someone who offers cash for houses- can seem impossible. Anyone who has sold a home can tell you – it’s a process. There are showings, negotiations and requests. It very rarely (unless you are in the middle of a hot sellers market!) moves quickly. One way to speed up the process of selling a house is selling a house for cash.
Most of the time, this kind of sale won’t be to someone who wants to purchase and live in your house. Instead, it will be to a real estate investor who wants to either remodel and flip your house, selling it for a profit, or maybe turn it into a rental property.
It’s a good idea to know the pros and cons of selling your home for cash before you jump in.
While a standard sale can take weeks to sort out the details and reach a final closing, a cash purchase can usually be closed in a matter of days – especially if you’re selling to a real estate investor.
Selling for cash to an investor is very convenient. You find an investor, have them offer you a price, and then if you wish to accept it, you close. A lot of cash buyers will even consider renting your house back to you while you look for a new one, which eliminates the stress of trying to move out by an abrupt deadline.
Selling to a cash buyer often means that the purchase will happen faster and without the need for remodeling, repairs and so on. This is especially true of selling to a real estate investor!
Investors Won’t Back Out When a house sale falls through, it’s typically because the buyer changed their mind. Whether this was due to a previously undiscovered problem with the house, another option or simply they decided not to buy, it leaves you in a bind and can be very frustrating. Because real estate investors see it as a business decision, they won’t be swayed by emotions or preferences the way someone looking to live in your home would be. They are far less likely to back out. Cons:
Be sure that the person buying your home can pay you. An accredited cash buyer or real estate investor should be safe, but if you’re selling to another individual, be sure to ask for proof of funds before closing the sale. You wouldn’t want to be caught with a bad check.
In exchange for the speed and convenience of a cash sale, there is a cost: typically, you can expect to receive 60-80% of the market value of your home. This is because cash buyers are offering you a quick sale, and investors especially are purchasing it in “as-is” condition. In the end, though, if you’re selling a home that needs a lot of work, this might still be a better deal than the time and money it would cost for you to repair and refurbish your house.
Selling to a cash buyer cuts out a lot of the middlemen. If you’re selling to an investor, neither side will have a real estate agent. This can be a good thing if you’re confident in your negotiating and attention to detail. It can also be a negative if you’re not able or willing to spend the time and energy with a contract and such. All of the things a realtor and others would typically handle will fall to you.
Overall, it’s easier to pull off a scam with cash (or the promise of cash) than with financing and loans. Be sure that if you are selling to an investor that they are accredited and legitimate. If selling to an individual, ask for proof of funds. Have a contract lawyer look over the contract before you sign. And use common sense.