4 Reasons to Sell Your Home to a Cash Buyer
If you have any interest in the real estate market, you’ve probably taken notice of signs that say “We Buy Houses” or “Sell Your House Fast” popping up more commonly. As it becomes more difficult to sell a house through traditional channels, cash buyers of real estate are growing in frequency.
When sellers are need to move their house quickly due to foreclosure, bankruptcy, or downsizing to move into a retirement community, cash buyers of real estate offer a solution that gets a house of the market quickly with the least amount of work. There are several reasons that cash buyers of real estate are beneficial to home sellers:
- Speed of Sale
When a seller puts a home on the market, it takes an average of 30 days to sell in a good market. In a bad market, it takes an average of 9 months to sell. When a seller doesn’t have the time to wait until someone is interested in buying, and then waiting until they get financing and paperwork through, using cash buyers of real estate to convert a home to cash is a great option. In some cases, they are able to buy a home in as little as seven days.
- Avoid Complications in Closing
When a home is being sold with bank financing, there are a lot of i’s to dot and t’s to cross. If the slightest piece of paperwork is out of line, the entire deal could fall through. If a deal falls through, the seller is back at square one in the complicated process. With a cash sale, once the parties agree on a number, the money is transferred and the deal is done.
- Avoid Estate Agents Commissions
Selling a home through the traditional channels involves both parties to have real estate agents. Real estate agent’s commission costs as much as 6% of the home’s sale value. If the house is already being sold for less than the value, taking an additional 6% off the bottom line might make the deal not even worth it. With a cash sale, the process is so simple, no real estate agent is needed.
- Sell Your House Without Making Any Repairs
This is probably the biggest benefit of a cash sale. Getting a home prepared to put on the market is expensive, especially for people who have lived in their house for decades but haven’t kept up with maintenance. Unfortunately, studies show that most investments made on home renovations are not recovered when the home sells. In other words, if you owe $200,000 on the home you’re trying to sell, but you have to put $20,000 in repairs into it just to get it ready to put on the market, you most likely will not be able to sell it for the $220,000 you have invested. Cash buyers of real estate make purchases in “as is” condition. Many times they even make the purchase without even laying eyes on the house.
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