While for sellers, the term selling ‘for cash’ might bring up an image of the buyer showing at their doorstep with a briefcase full of cash. However, that is certainly not the case. A ‘cash offer’ refers to a deal that comes without a financing contingency, or in simple words, it does not depend on the buyer being able to secure a loan. In this context, the word cash is used to illustrate the idea that the buyer does not need a mortgage to purchase your house. Once the deal on the house is closed by the cash home buying company, you will receive the payment by wire transfer or check.
How Does Selling A House for Cash Works?
Cash buyers do not require lender financing to pay for your house, and generally, they will buy the house off-market. As a result, you will get a deal with far fewer contingencies (for example, there is no need for an appraisal nor the buyer has to sell their existing home before they can receive a loan). Taking the loan out of the picture makes things clearer at your end as a seller, and the great thing is that you can avoid the showings and staging ritual.
There are also different types of cash buyers depending on why they are buying the house, the types of houses they are looking for, and the general experience they provide to the sellers.
- Buy and hold investors – as the name suggests these cash buyers want to hold on to the property for a long period of time, commonly with the intention of renting it out.
- House flippers – these buyers purchase the property at a steeper discount and intend to make a few improvements before selling the property at a higher price point for profit.
- iBuyers – these are instant buyers that make immediate offers on the properties online. They use automated valuation models (AVM) and digital platforms to offer a more streamlined experience to the sellers.
Benefits of Selling Your House to A Cash Buyer
With a large number of properties on the market, finding the right buyer for your house can be a bit of a challenge. When convenience and speed are your top priorities, selling your house to the cash home buying company might be the best way to move forward. Let’s take a look at some of the key benefits of selling your property to a cash buyer.
You Keep All The money
When you sell your house for cash, you don’t have to pay for a realtor. All the closing expenses that come with a conventional home selling experience are disappeared. With a cash offer, you are essentially selling your house directly to the buyer, evading any added fees. As a result, you get to keep all the money you make on the sale and save thousands on a realtor’s commission. Even when your property sells for a lesser amount than it may have with another buyer, you are still better off when you take into account the commission fees you get to save.
Sales Happen Fast
Selling your house, the traditional way is a long, tedious process. You have to hold staging and showings with people coming in to take a tour of the house, and then waiting for a potential buyer to make a worthwhile offer. With a cash buyer, you get to skip all the showings, waiting for offers, and loan approvals. Instead, you receive a cash offer and have the paperwork started as soon as you accept the deal.
No Need to Make Repairs
Most cash buyers are interested in buying your house as it is. They do not exactly care whether you have a perfectly refurbished kitchen with brand new tiles. As a result, you do not have to worry about spending money and time on expensive repairs. It makes the entire home selling process a lot less stressful.
Fewer Chances of Sales Falling Through
As there is no chain involved with a cash buyer, you don’t have to worry about your sale falling through. The buyer does not depend on loan approval from the bank to buy your property. You don’t have to be on edge, thinking that the buyer might get cold feet towards the end. Your sale would be made within a week, and therefore there is less time for things to go wrong.
Selling a house for cash comes with numerous benefits. The crucial thing is that you do your research and make sure you are informed so that you can get a fair price on your property. Work with cash buyers that you can a hundred per cent trust.