We’ve all been there: you’re driving down the highway, cruising along when you spot a huge “we sell houses fast” sign along the side of the road. Most of us simply breeze past without giving it a second thought, but what if you stopped to check it out?
The cash for homes market is fairly large, with roughly 30% of Americans selling a house for cash each year. They know that working with a cash buyer is a great way to sell houses fast and start using their money.
If we’ve piqued your interest, keep reading. Let’s check out a few pros and cons of getting a cash offer for your house!
Advantages of Selling a House for Cash
Let’s start by looking at the many advantages of selling a house for cash. There are many different reasons why working with a cash buyer is a great idea, but here are a few of the most notable.
You Don’t Need to Prep Your Home
When you sell your home to a traditional house buyer, you have to do a ton of prep work to get the place ready. Unless you usually keep your home in mint condition, you’ll need to get down and dirty to deep clean the home.
With a cash buyer, however, you don’t need to worry about any of that. Your kids can leave toys and clothes lying around if they like because cash buyers don’t care about how messy or clean your home is.
On top of that, you don’t need to make any extensive repairs. Cash buyers purchase your home in its current condition so that you don’t have to spend tons of time and money getting it fixed up.
Less Paperwork
Nobody likes sifting through mounds of paperwork, but when you sell a home for cash that’s usually exactly what you have to do. There are tons of documents to read, initial, and sign before you can even start the home selling process.
With cash buyers, however, you don’t have to worry about any of that. When you sell your house for cash, your buyers will handle all the paperwork and walk you through the transfer and transaction costs.
Not only does this get rid of the stress associated with these tasks, but it also reduces the chance that there will be errors on the paperwork. And, it speeds up the entire process.
Fast Closing
Did you know that the average time a home spends on the market is 30 days? Now, while a month might not seem too long, imagine being able to sell your home in less than a week.
When you sell your house with a traditional realtor, you never know if you’ll hit that sweet spot or if you’ll end up waiting for months on end to sell your home.
When you work with a cash for homes company, however, the time it takes to sell your home gets significantly shorter. Cash for homes companies doesn’t work with mortgage lenders, meaning that they can sell your home in a matter of days!
If you don’t have a ton of time on your hands, choosing a cash for homes buyer is a great way to sell your house fast but still get a great deal.
No Lending Issues
Many times, people are unable to sell their homes thanks to lending and appraisal issues. Since most buyers use a mortgage to purchase your house, you have to wait on the loan to go through before you can sell the house.
This can often cause huge issues and even lead to a loss of the sale entirely since the lender has to appraise your home to reduce its risk. They want to ensure they’ll get their loan back in the future.
The good news with selling to “we buy houses” companies, however, is that you know the buyer already has the funds they need to purchase your home. Cash buyers have to show proof of funds, making it a great guarantee that you’ll get your money.
You Can Have Odd Houses
If you have a house with a strange layout or a unique appearance, you may find that you have trouble selling the home. Many times, people don’t want to buy a house because of how it looks.
A strange carpet, oddly shaped addition, or weird wall colors could be to blame for the trouble in selling your house. Whatever the issue is, however, it can turn buyers off from the sale.
Cash for homes buyers doesn’t care about oddities in the home. They’re happy to purchase your house as-is and get you a deal no matter what it looks like.
No Open Houses
Usually, when you sell a house with a real estate agent, you have to hold an open house. This gives potential buyers a chance to walk through your home and see what it looks like.
Open houses can be a huge turn-off for many people trying to sell their homes because they can feel invasive. You could have just a handful of people walking through the home, or you could have hundreds!
When you sell your house with a cash buyer, however, you don’t need to hold an open house. They’ll purchase your home without the need for walkthroughs of your space.
Reduced Fees
Selling homes comes with tons of fees that you need to pay. Even though you’re the one selling the house, you’ll still be required to pay some fees for your sale.
When you sell a house for cash, however, you can get rid of tons of those costs. You don’t need to worry about any fees associated with mortgages.
On top of that, you don’t have to pay tons of money to repair your house. Cash buyers don’t look at the state of the house, and they don’t have to deal with mortgage lenders, helping you reduce overall costs.
Get Access to Inheritance
If you inherited a house, you’ll find that it’s tough to get access to the value of the property. Instead of having useful monetary resources, you’re stuck with a piece of property you don’t want.
When you work with a cash buyer, however, you can quickly get rid of the property and receive a hefty lump sum in return. It’s a great way to get access to your cash quickly.
High Chances of a Successful Deal
When you sell a house, there are many hoops to jump through to complete the process. You have to go through the negotiation process and more just to get your home off your hands.
Sometimes, the buyer decides to pull out of the deal at the last minute. Or, they don’t get approval for their loan and are forced to back out of the deal.
No matter what the reason, it’s not uncommon for your house sale to fall through when you work with traditional real estate agents.
When you partner with a cash buyer, however, these issues go away. Cash buyers are serious about purchasing your home and already have the cash on hand that they need to get the transaction completed.
No Third Parties
Working with third parties is a major inconvenience, yet it is a reality of selling your house with a traditional realtor. You have to work with the realtor, lenders, brokers, and more to help sell your house.
The trouble with these types of people is that they can throw your schedule off at any time, and they require tons of paperwork, regulations, and transactions that you have to navigate.
When you work with a cash buyer, however, you don’t need to use any of these third-party groups. You can sell your house to your cash buyer quickly and without having to coordinate tons of different schedules.
Disadvantages of Selling a House to Cash Buyers
Even though selling a house to cash buyers comes with tons of benefits, it also comes with a few pitfalls. It’s important to be aware of these so that you have realistic expectations of the process. Let’s take a look at these disadvantages.
Low Selling Price
One of the most common disadvantages of cash for homes buyers is that sometimes you might not get the best possible offer. Cash for homes companies are businesses, and they’re looking to score a deal.
Sometimes, cash for homes companies will offer you a lower price so that they can flip the house and use it for rental properties. Or, they’ll give you a lower price to offset the costs of tearing it down and creating a brand new home.
However, a slightly lower sale price may be worth it for the quick turnaround time. Sure, you could get less than you would through traditional selling, but you’ll also get immediate access to your cash.
Various Fees
Even though selling a home will cost you tons of fees, sometimes all-cash companies come with a few fees as well. Depending on what seller you use, you might be responsible for paying seller fees.
It’s important to ask your chosen cash for home buyers exactly what, if any, fees you’ll have to pay. That way, you can avoid a nasty surprise when you’re already in the middle of the process.
You’re Responsible for Repairs
When you work with a cash homes buyer, you need to be on the lookout for what costs you’ll have to pay for. Some companies require you to pay for repairs so that they can save themselves money after the sale goes through.
Remember, not all cash for homes companies work this way. Many companies don’t require you to do any repairs at all and will purchase your home as-is, saving you money on these types of costs.
Appearances Can Be Deceiving
Probably the biggest issue for cash for homes buyers is that appearances can be deceiving. You never know exactly what you’re getting into.
Some cash for homes buyers send representatives who then sell the house to another company. They work as finders rather than buyers, slowing down the cash for homes sale process.
What’s more, some cash for homes companies don’t follow through on their promises. They waste a lot of time only to give you an extremely low offer that you can’t accept.
The way to get around this is to do your due diligence and research your chosen cash for homes company. Work with a team such as Smith Liquidations that is fully verified and trusted and that has multiple positive reviews.
Lack of Competition
The last issue you might encounter when selling a home for cash is a lack of competition. There are more individuals seeking out homes than there are cash buyers, making it tough to find someone to sell your home to.
What that means is that there’s not as much competition out there when you’re wanting to sell your home for cash. You’re not as likely to get highly competitive offers since cash for houses companies simply don’t have as many people making counteroffers.
Partner With a Cash Buyer Today
There are several advantages and disadvantages to working with a cash buyer. However, if you’re wanting to sell a house quickly and get cash in your pocket, they can be a fantastic option.
So, what do you say? Are you ready to sell for cash and get your house off your hands once and for all? Get in touch with our team, and we’ll get you the best offer around.