With a rising number of companies offering cash for homes, many people are drawn to the idea that they may not need to wait months to list and close on their homes, especially if their home needs a little work.
Whether you need to sell your home quickly due to a change in circumstances, a divorce, a new job, or finding the maintenance fees unaffordable, the process of waiting for a market sale and the additional fees that come with it may seem an unattractive prospect.
If you’re trying to decide whether to sell your home to a cash home buyer or to put it on the market, you may be wondering if the process is really as easy as they say. That’s why we’ve put together a guide to help you make the right decision for you.
Firstly, let’s look at the all-importance question of cash home buyers’ legitimacy:
Are cash home buyers legit?
Unless you notice some major red flags with a company you’re considering selling to, such as them asking you to send them money first (in which case it may be a scam), cash home buyers are absolutely above-board.
As with anything that involves your equity, it’s always worth doing your due diligence. Research the company you’re thinking of selling to and see if they’re registered with the Better Business Bureau (BBB). You can also ask the company for proof of funds to prove their commitment to the sale, though usually the process moves so quickly that there will be little reason to do so.
What types of cash home buyers are there?
The traditional way of buying and selling property is to go through a real estate agency, but with a rise in technology use, we’re seeing more alternative selling strategies than ever before. Let’s look at the three primary types of cash home buyers:
- Individuals looking to buy a home for themselves with cash – this is the type of buyer you’re least likely to come across if you aren’t actively marketing your property. If you put your property on the market, you may find someone or a couple looking to cash-buy. In this case, you’ll still have all the additional fees, but the process of going to completion should be relatively fast – no more than 6 weeks.
- Individual real estate investors looking for a home to renovate and sell for a profit or to rent out. The practice of buying a property, upgrading it, and selling it is known as “flipping” and is more commonplace than ever before. You may be able to find someone like this if you put the word out about being interested to sell, or if you put your house on the market. Selling to an investor will be fast once you’ve found them, but finding one may be a challenge if you don’t want to incur realtor fees.
- Cash home buying companies, like us!
What are the pros of selling my house to a cash home buyer?
- It’s the fastest way to sell: One of the main advantages of selling your property to a cash home buyer is that it’s far quicker than traditional methods of sale. On average, a home takes 47 days to sell, which is a long time when you consider the stress of logistical complications, hidden fees, organization, and upheaval. That often doesn’t include the time it takes to exchange contracts. If you’re in a hurry to sell your home or need the cash soon, waiting months might not be an option for you.
- Cash purchases can take as little as a week, and with this option, there’s no worrying about staging, hiring a listing agent, or stressing about how long your home will stay on the market before being sold. If an emergency has come up and you need to relocate quickly, selling your property for cash can be a lifesaver.
- It’s the simplest way to sell: Alongside the fact that this whole process is quick, it’s also really simple. Most cash home buyers simply require you to fill in a form on their website and you’ll get an offer within a couple of days. There’s no messing around with realtors, organizing viewings, negotiating prices, or waiting for the right people to walk through your door.
- You don’t need to do anything to your home to sell: Another advantage of selling your home to a cash home buyer is that you don’t have to think about paying for repairs you might not be able to afford. Traditionally, homeowners would have to fork out for new lighting fixtures, repaint the walls, fix loose cabinet hinges, resurface the bathtub, and much more before even showing their homes. Once an offer is made, buyers often find fault with the property to drive down the price. With a cash sale, your property is off your hands within a short period so none of this is a concern.
- You have certainty: One of the most stressful elements of selling a house is the uncertainty it brings. The stress of not knowing where you stand for weeks and even months is too much for a lot of people, which is why cash home buyers are a good option for many.
Cash home buyers typically won’t make an offer with contingencies, meaning you won’t need to consider the sale falling through if your home fails an inspection or the company can’t get financing, as with a normal buyer, since they generally don’t get third-party inspections and they’re buying in cash.
Selling to a cash home buyer can eliminate a significant amount of anxiety so if you just don’t like the idea of a few months of constant stress, you know the option to pick!
What are the cons of selling my house to a cash home buyer?
While the convenience of selling your home to a cash home buyer is clear, there may be some things to consider before you make this decision:
- May accept less than you would if you held out: You may receive less money for your asset if you sell it for cash. In a world where time is money, you’re paying for the convenience of quick access to money, so it’s worth remembering that this figure may be slightly lower than if you’d gone through a realtor. That said, sometimes a home will sit on the market for some time if it has some problems and you’ll have to continue sinking money into it during that time, so that’s something you need to consider. Again, the decision you make is all dependent on your priorities and available resources (in time, energy, and money).
- Usually not a lot of room for negotiation (if any): You may not be given an opportunity to negotiate with a cash home buyer as their offers tend to be a take-it-or-leave-it type deal. Some people prefer to haggle but for others, this one-time offer situation may actually be preferable. Real estate deals often involve multiple back-and-forths regarding offers, counteroffers, contingencies, logistics, and so much more.
Get a No-Obligation Cash Offer
If you live in Massachusetts and have been considering selling your home for cash, you’ve come to the right place. We’re proud to be a licensed, A+ BBB accredited “We Buy Houses” cash home buying company and we’ll purchase your house no matter the condition or circumstance.
With us, there are no open houses to plan, no repairs to worry about, and no commissions or hidden fees to pay. Just a simple offer with no pressure or obligation!
To learn more and to contact us for your fair cash offer, click here.