On average, it takes around 71 days to sell a house from start to finish. However, some homeowners wait much longer than this to sell their homes.
When homeowners don’t want to wait this long to sell, they might wonder about alternative options.
For example, have you thought about selling your house for cash?
You won’t have to wait 71 days to close on your home if you sell it for cash, but is this a good option for you?
If this is an idea you’re tossing around, you might want to begin by considering some very crucial things first.
Here is a guide that explains everything you should consider before selling your house to a cash buyer.
Your Loan Balance And Home Value
While you’ll need to think about many factors before selling your house for cash, an excellent place to start is with your loan balance. Additionally, you can analyze your home’s value.
Your loan balance is the primary expense you must pay when selling your house through any method. You receive an offer for your house, but you can’t keep all the money if you have a mortgage on your home.
If you compare your home value to your loan amount, you can get an idea about the profit you could make.
Keep in mind, though, that you might have some expenses to pay when selling your house, especially if you hire a real estate agent to help you find a buyer.
The Home’s Condition
Next, you might want to consider your home’s condition. For example, is your home immaculate and up-to-date, or does it need repairs and updates?
There’s a big difference between selling a turnkey home and a fixer-upper, and you should understand this before selling.
If you have a turnkey home, it means that it’s in great condition. It also means that someone can buy and move right in without investing money and work into the property.
When you have a home that needs lots of repairs, you might consider it a fixer-upper. People who purchase fixer-uppers must invest money and work in these homes before moving in or selling them for a profit.
Now, you have the option to update and make repairs to your home before selling it. You might have to invest a lot into the home to transform it into a turnkey house. The downside to this is the investment you must make.
The positive side of investing money in a home is that you might sell it for a higher price and faster. If you don’t have time or money, though, this isn’t a great choice.
Additionally, people spend between $1,000 to $3,000, on average, staging their homes. Staging might involve repairing things, but it might also include making minor changes to a house to improve its appeal and looks.
The Current State Of The Economy
The current state of the economy plays a massive role in how quickly you can sell a house. During some periods, buyers have a high demand for homes. During others, though, they don’t.
You can often sell a house fast through a real estate agent during a booming economy where the demand for homes exceeds the supply of homes for sale. Unfortunately, the economy isn’t always in this state.
When you need to sell a house quickly when supply far exceeds demand, you might have to wait a while before finding a buyer. You might also have to lower your home’s asking price.
Selling a house for cash is a great option to consider when the market is slow, and buyers are scarce.
Your Reason For Selling Your House For Cash
So, why do people sell homes for cash? Learning the common reasons might help you feel confident about using this method for a quick sale. Here are some of the reasons:
Inherited A Home
Imagine inheriting a house from a relative when they died. If you already have a home you love, you might not want to move into the one you inherited.
Instead, you might want to liquidate if you’d prefer having the cash instead of clinging to the property. Selling a house for cash helps you liquidate quickly, leaving you with money instead of a property you don’t need.
Some couples decide to sell a home for cash during or after a divorce. For example, if neither spouse wants the house, they might decide to sell it.
In many cases, couples sell their homes because neither spouse can afford to keep them. In other cases, they sell them to simplify their divorce cases.
When a person must relocate for work purposes, they might need to quickly get out of their home loan. After all, they might not be able to buy a house in their new location until they sell their existing one.
You can also choose to sell a house for cash to avoid foreclosure. Having a foreclosure on your record lingers for years and causes bad credit.
If you’re on the verge of losing your property to foreclosure, selling it for cash might be the solution you need.
Death In The Family
There are also times when people sell homes for cash after a death in the family occurs.
For example, if a person loses their spouse to death and doesn’t have cash or life insurance, they might not be able to afford the home. As a result, they must sell it.
The Need To Sell Quickly
Next, you can think about your timeline. How quickly do you want to sell your property? Do you need to sell it right away?
If you need to sell it quickly, it’s likely for one of the reasons listed above. However, you might also have a different legitimate reason.
Your reason doesn’t really matter, though. The only thing that matters is that you need a fast way to sell your property, and selling for cash is the best option.
How The Process Works
Learning about the process is another factor to think about in this decision. Fortunately, the process is simple. It has three main steps:
1. You Contact A Cash Buyer
The process begins with contacting a cash buyer. The cash buyer is an investor that purchases properties for investment purposes. They might rehab the homes and sell them for a profit or use them as rentals.
In any case, you must reach out to a buyer to initiate the process. You can learn more about choosing a cash buyer by reading the rest of this guide.
2. They Research Your Home And Write An Offer
The second step might take a few days, but it won’t take longer than that. This step involves the buyer researching your home to determine how much to offer for it.
Cash buyers look at several things when researching homes, including the home’s condition, location, and history.
They’ll need to know how much work the home needs and if it has liens. They’ll also need to know how much it will be worth if they rehab it.
Once they know these things, they’ll write an offer and give it to you. You’ll have some time to review it and think it over.
3. They Pay You The Agreed-Upon Amount
Step three is the last part of the process, and it’s the step when you receive your money. The buyer will pay with cash, and you’ll get the money.
As mentioned, the buyer must pay off your mortgage loan first, but you keep the rest.
The Benefits Of Selling A House For Cash
One of the most vital things to consider is the benefits of selling a house for cash. Here are some of the top ones to know:
When you find a buyer through a real estate agent, the buyer will pay for the home with a mortgage. The downside to this is the time it requires for the buyer to get the loan.
Another downside is that the deal could fall through if the buyer can’t get the loan. The deal might also fall through for other reasons, including a low home appraisal.
If you want a guaranteed sale, selling it to a cash buyer is your best bet. If they make an offer, and you accept it, the deal will go through. It’s a guaranteed sale.
No Home Showings
One challenging part of selling a house traditionally is offering home showings to potential buyers. People will request showings, and you must accommodate.
As a result, you may need to work hard to keep your home clean while you’re trying to sell it. You’ll then need to leave each time you have a scheduling viewing.
Home showings are a nuisance, but you can avoid them if you sell your house for cash. While the cash buyer might ask to see your home once, you won’t have to prepare it at all, and you won’t have any other showings.
You can avoid these inconveniences by choosing a cash home buyer.
As mentioned, it can take 71 days or more to sell a house through traditional methods, and there’s no guarantee you’ll even sell it. You might wait and wait for a buyer, but one might never come.
If you want to avoid waiting, you can find a cash buyer. When you accept the offer they make, you can expect to close within one to two weeks.
Imagine closing on a house in one to two weeks from today! This could be the answer you desperately need.
You Don’t Pay A Commission
Selling to a cash buyer forgoes the need to hire a real estate agent. Real estate agents are good at what they do, but they don’t offer services for free. Instead, they earn commissions from home sales.
When you pay an agent this commission, it cuts into your profit. Most agents charge at least 6% for the commission, which adds up to a lot of money.
If you don’t use an agent for your home sale, you won’t have to pay the commission. Instead, you keep all the money as your profit.
They Don’t Ask For Contingencies
One of the best benefits, perhaps, of selling a house for cash is the freedom from contingencies. Cash buyers don’t place contingencies on their contracts, which is awesome news for you.
If you’re not familiar with contingencies, you’ll probably want to learn what these are before proceeding. A contingency is a request the buyer makes, and it requires action before closing on the property.
For example, traditional buyers might include a contingency for repairs. If you accept the offer with this contingency, you agree to make the repairs and pay for them.
Another contingency found in many real estate deals is a home inspection clause, allowing the buyer to get a satisfactory home inspection before closing.
A cash buyer purchases a property as-is, meaning you won’t have to change a thing or invest any money in the home. They’ll take it just the way it is – problems and all.
How To Find A Buyer For Your Home
The final consideration is how to find a buyer for your house.
As you search, you’ll want to look for buyers in your state and city. Next, you should take some time to research the companies to ensure that you choose a legitimate one.
You can read reviews and scope their websites to learn more about them. When you find the right one, you can begin the process by contacting them for a cash offer.
Choose Us When You’re Ready For A Cash Offer
You might decide that selling your house for cash is the best option for your situation. If you decide to sell, you can begin by requesting a quote.
We buy all types of homes for cash in North Carolina, and we’d love to make you an offer. Are you ready to request one?
If you’d like a cash offer for your home, contact us. We’ll work up an offer and have it to you quickly.