Cash home buyers are slowly dominating the real estate market. In the first third of 2021, about 30% of homes sold were bought by cash buyers, which was a significant rise from the previous year as property sellers realized the benefits of cash offers.
You want to sell your expensive house in the city and move to an affordable area. It could also be that you want to top up and buy a bigger house. In any case, there are numerous reasons to sell your home to a cash buyer.
In this blog, we look at some of the benefits that come with selling your house to a cash buyer.
1. No Worries about Lending Issues
One of the common causes of failed house sales is lending and appraisals. When selling your house to buyers using a mortgage, you can never be sure if the deal will make it to the end. The lenders may pull out of the deal along the way, forcing the potential buyers to give up on their dream.
For instance, the lender must first determine the value of your house and ensure it is worth the least amount of the loan being borrowed. They need an appraisal to reduce their risk if the house is foreclosed in the future.
If the appraisal is lower than the lender’s expectations, the lender may decide to back down from financing the property buyer. Similarly, the mortgage deal is canceled if the buyer’s financial situation does not appeal to the lender.
Such inconveniences force you to look for another buyer and start the whole process from scratch. But that is not the case with a cash buyer. Since no lender is involved, there are no appraisals, and thus no chances of dropping out of the deal.
The buyer already has the money they require to purchase the property. The only remaining work is determining if your house value is worth spending on.
2. Lesser Paperwork
Handling paperwork is another not-so-fun property selling task. Imagine going through a heap of documents, reading, initialing, and signing. The activity can be overwhelming, and the slightest miss can cost you a lot.
Cash buyers intend to save you from this stress by handling the paperwork and closing processes for you. Some cash buyers will even help you through the transaction and transfer processes, so you have the least to worry about.
This is a big deal, considering how stressful handling transactions by yourself can be. Having the buyer do it reduces the risks of errors and speeds up the process.
However, it will help if you take your time to check the reputation and reliability of the buyer first. Make sure you can trust the cash buyer with the paperwork and funds. Otherwise, you risk losing everything to scammers.
Check testimonials on their site to see what others are saying about their reliability. You can also check review sites and choose a highly rated buyer.
3. Fast Closing
Selling your house in cash is the best option if you are in a hurry to close the deal. In cases where you want to use the funds to make another quick purchase or to relocate to another city, cash buyers are the real deal.
The closing process is fast, from the start to the end. Remember that you will be dealing with the buyer directly. You also don’t have to go through the lengthy appraisal process and wait for the buyer to be granted a mortgage to close the deal.
Mortgage underwriting takes no less than 30 days. And a lot could happen during the process. The lender may change their mind at some point if the borrower’s financial situation changes for the worse before the loan finalization. This forces you to start from scratch with another potential buyer.
Cash buyers are not subject to mortgage underwriting, which saves time and reduces the risk of deals crashing.
4. Reduce the Deal Closing Fees
Everyone will agree that buying and selling houses comes with many hidden fees. The process can be draining even before you get to the end.
Although you cannot avoid some of the costs, you can certainly reduce them by selling your house in cash. For starters, the idea eliminates any costs related to mortgages. The buyer will not be borrowing money to finance the purchase, which saves them time and money on the documentation.
Furthermore, you no longer have to spend a fortune on repairs to impress the buyer. Cash buyers don’t pay much attention to the state of the house when determining its worth. They are not trying to prove to the mortgage lenders that the property is worth financing.
The buyers will come right to you to view the house, make a sound decision, and pay for it as it is. This benefit is a win for both the seller and the buyer.
5. No Going Overboard With House Repairs and Improvements
Selling your home to a cash buyer eliminates contingencies. Contingencies force home sellers to do anything to impress the buyer, from repairing and improving every aspect of the home to increasing the house value.
Although some home repairs and renovations can improve property value, the time and money spent are often not worth it.
Things get worse if you don’t have the means to finance major improvements like siding installation, and this could force you to borrow loans to make your property sellable.
With cash buyers, the repair funds do not come from you. Most buyers agree to purchase your property just as it is. They won’t even ask you to do the minimal, like painting or fixing the plumbing system.
The best part is that they won’t try to negotiate to recover the money they intend to spend on renovating the home. This saves you money and eliminates the stress of lengthy repair processes on a house you intend to vacate.
6. Get Fair Offers
Cash buyers will make the best offer to match the value of your property, as per the current market value. It doesn’t matter if your house is in a not-so-good state or if it’s not in a well-known neighborhood.
Cash buyers view the properties as investments that can bring them significant returns in the future. They don’t let minor factors such as repairs and renovations dictate how much your house is worth.
7. No Need for a Realtor
This benefit is another money-saving factor. Selling your home to a cash buyer saves you from the hassle of hiring a real estate agent as a mediator between you and the buyers.
Contrary to the common belief that real estate agents save you money, you will realize that the idea is not as cheap if you look at things from a broader perspective. You may be required to pay up to 6% of the house sale price to the agent, which is a major cut on your expected returns.
Moreover, hiring a realtor requires you to do in-depth research to find a reliable provider. You must check their experience and credentials, which can be tiring and time-consuming.
Also, most real estate agents handle many clients simultaneously, so your property may not get the attention it needs to sell fast.
Cash buyers save you from these inconveniences by handling all negotiations by themselves. The buyers will close the deal within the shortest period of time, and the fact that you can market your property directly to the clients saves you more time and money.
8. Spend Less on Marketing
Traditionally, selling a house fast requires a total property makeover and killer marketing strategies to achieve fast sales. Hundreds of properties make it to the listing sites every day, so you must strive to keep up with the stiff competition. Otherwise, your house could stay on the market for months or even years.
Selling to a cash buyer saves you from this hassle. The buyers may look for you instead.
Most cash buyers do some research and find some worthwhile houses on their own. They constantly visit resourceful real estate sites to find those houses.
You can also spot potential buyers by checking real estate companies or searching for cash house buyers near you. And then reach out to the buyer directly. This benefit is good news for busy individuals or those with budget constraints.
You also don’t have to familiarize yourself with complex technological requirements like real estate listings and advertisements.
9. Forget About House Showing
How many are not comfortable with strangers walking into their houses now and then? As much as you love hosting guests, taking them through your property, one after the other is certainly not fun.
Property showings create opportunities for judgments from strangers. Some are not even serious about the house but will still show up and demand a show. And this can be frustrating and tiring for the seller.
Luckily, besides eliminating the need for marketing, a house cash sale requires no show. As soon as you initiate the first meeting with a potential cash buyer, there is no need to bring other buyers in for a tour.
You don’t have to spend hours staging your house and taking perfect photos. You don’t have to fake your lifestyle and hide everything to make your house look better.
Cash buyers rarely show up for showings, and if they do, they can view the property as-is. Some even purchase properties site-unseen.
10. High Chances of a Successful Deal
Selling a property is never a walk in the park. It comes with lots of disappointments and frustrations from undecided buyers.
Imagine someone approving your offer and taking you through the showing and negotiation processes, only for them to back out at the last minute. This is common when selling homes to buyers relying on a mortgage.
Sometimes, the buyers may not acquire the loan and are forced to back down. Others have a change of mind along the way and inform you that they are no longer interested in the house.
You can avoid such incidences by opting for a cash buyer. These are serious individuals that already have the means of financing a home purchase. They have made up their mind. Just say the word, and they will quickly finalize the deal.
Mostly, cash buyers close deals in less than a month, giving them no time to change their minds. So, if you are looking for a sure way to sell your property, cash buyers are a sure bet.
11. No Third Parties
Working with third parties is the most tedious part of selling or buying a home. You have to go back and forth with a lender or broker and expect their approval.
Third parties can throw a wrench in your schedule anytime they want, which can be mind-numbing. Forget about this with a cash buyer. The negotiations, paperwork, and transactions are done directly between you and the buyer.
What’s more, when the buyer pays for your house, you get all the money. You don’t have to involve anyone or put the money in escrow to finalize the transaction. Sit back and watch the money hit your account before handing over the keys.
This is also why the closing process with a cash buyer takes less time. There are no regulations from the lender to follow. It is as simple as going to the market, picking what you want, paying for it, and going on your way.
Get Better Deals and Sell Your House Fast With a Cash Buyer
One thing about home cash buyers is that they know what they want. They have no business making offers if they are unsure if they want to purchase the property. If they make a cash offer, it means they seriously want to buy your property.
The right cash buyer will give you better offers than what you would get from a buyer relying on home loans. It will take less than 30 days to close the deal, and you can finally hand over the house and move to your new home.
You can count on us for a simple, quick, and hassle-free way to sell your property without agent fees and closing costs. Contact us today to learn more about our process and requirements for buying a house.