At Sell My House Fast, We Buy Houses For Cash Nationwide! No Repairs. No Commission. Fill Out The Form To Get Started On Your FREE CASH OFFER Today!
Benefits of Selling a House for Cash
Selling a house on the real estate market requires a lot of hard work. You must hire an agent who will do their due diligence to look at comparable sales, stage the house, plan a marketing strategy, and so on. If you aren't that motivated or prepared, your house may be listed for months. To avoid the tedious process of a traditional house sale that can also impact your future financial decisions, selling your house for cash has several benefits.
Some of the benefits and advantages of cash sales are faster closing, no fees, no showings or marketing, not much paperwork, less risk of a failed sale, no repairs or appraisal required, and no lending issues. Getting an all cash offer is also fast and simple. It won't require months or years before you get the money in exchange for your property.
If you're interested to learn more about cash sales, you found the right blog! Here, we have comprehensively discussed every benefit of an all cash offer and answered who buys houses for cash, how common all cash offers are, and many more!
What Is a Cash Offer?
Generally, a cash offer means a buyer will pay the full purchase price of your home in cash. There is no mortgage lender involved, so the sales process is relatively faster and easier.
Put more simply, cash buyers can actually afford your home, so there are fewer hoops you have to go through during the sale.
Many envision that a cash buyer will come to your house carrying wads of money in a briefcase after accepting a cash offer. However, it doesn't work like that. Once the sale closes, they'll transfer your money to your bank account.
Are Cash Offers Common?
Yes. All cash offers are actually common. In fact, CNN reported that in April 2021, 25% of home sales made were all cash deals. CNN further elaborates that this data from the National Realtors Association is proof that more and more homeowners want more certainty in selling their homes.
Moreover, ATTOM Data Solutions suggests that these cash deals are usually focused on single family homes and condo sales. Note, though, that this may not always be the case due to varying market conditions.
Who Buys Houses for Cash?
Finding an all cash buyer is quite easy since, technically, there are a lot of buyers who can be considered as one. Let's take a closer look at each of them.
Home flippers are companies or individuals who buy houses as-is and improve them so they can later sell for profit. Flippers are great in searching for houses that are about to go for sale. They make offers even before the house gets listed.
Real Estate Investors
Similar to house flippers, real estate investors also buy houses off-market. However, they usually hold onto the property as a rental and lease to tenants.
Sometimes, a real estate investor or investment company will buy houses on a larger scale so they can convert them into commercial areas. But they may also buy houses to hold and appreciate.
Cash Buying Companies
Companies that buy houses for cash can be home flippers and/or real estate investors. Also known as "We buy houses" companies, you can request a cash offer online and sell your house as fast as 7 days. These companies don't charge fees and typically cover closing costs.
iBuyers are tech-based cash buyers. They use a software to estimate the value of a home and make an all cash offer in as fast as 48 hours. The main downside of selling to iBuyers is that they charge a service fee.
Homeowners Who Recently Sold Their Home
Homeowners who just sold their house are probably looking for a new dwelling place. Some of these people have all the cash needed to purchase a new home if they just got the sale proceeds of their old property with a lot of equity.
They may be willing to pay in cash in order to avoid mortgage loans since they know how stressful having one is.
There are some potential buyers that can really afford to buy houses in full instead of just paying the down payment since they are well-off. Usually, these people are business owners or investors.
Retirees also buy houses for cash since they don't want to deal with a mortgage payment every month due to their age. They use their savings in order to pay for a house in full.
Sell a House for Cash: Pros and Cons of Selling to Cash Buyers
Just like a traditional home sale, accepting a cash offer has its pros and cons. But the good news is that the benefits of accepting an all cash offer easily outweigh its cons.
Pros of Selling a House for Cash
Faster Closing Period
Since all cash offers eliminate lenders from the picture, the sales process becomes relatively fast. This is one of the primary benefits of accepting a cash offer.
A traditional sale takes a few months (or even years) to reach the closing table because the potential buyer still needs to apply for a mortgage loan. However, cash buyers close in as fast as seven days. The process is even made faster because cash buyers don't require a home appraisal.
Cost savings (Fewer Fees and Closing Costs)
Accepting a cash offer means skipping a lot of steps in a typical home sale in a hot market. These steps usually incur fees, so both the home seller and the all cash buyer save tons of money and avoid financial difficulties.
For instance, since a home appraisal is not required, the home seller won't have to spend a few hundred dollars to get one. There are also expensive lender fees, closing costs, and fees for repairs, staging, and marketing which won't be a problem when selling to an all cash buyer.
When you sell for cash, you won't have to worry about making repairs, staging the property, finding real estate agents, and many other complex tasks you have to do when selling traditionally. On the same note, you won't have to deal with a complex closing and paperwork process.
Most of the transactions are handled by the cash buyer, so it's really less work for the home seller.
No Marketing Required
One of the main reasons why traditional home sales are stressful is because of competitive real estate markets. In an area where houses being sold are freshly renovated or updated to modern standards, a fixer upper house would definitely need more marketing.
Marketing requires someone to take professional photos of the property, advertise online or in local newspapers, post on social media pages, and many more in order for your listing to get attention.
Fortunately, marketing isn't necessary when you get all cash offers since you won't have to list and wait for offers from retail home buyers. This will help you in saving money and netting more during the sale.
Boosting real estate listings doesn't exist when you sell for cash since you'll transact with a buyer directly.
No Showings and open houses
A house showing and open house are legally letting strangers enter your home to check every corner of your dwelling.
This is uncomfortable if you are a very private person. Luckily, all cash offers tend to be straightforward so showings aren't necessary. Cash buyers only visit the house once to formulate an accurate offer.
No Lending Issues
Most home sales take months because buyers have to wait for mortgage approval. In worst cases, mortgages are denied leading to the fall of a home sale.
Because cash buyers can afford to pay cash, there are no lending issues that can delay the sale. This is one benefit of a cash offer on a house that most people tend to overlook.
The amount of an all cash offer is often final and non-negotiable. While this may seem a bad thing, this is actually advantageous if you don't want to deal with all the drama of negotiations.
Many potential buyers are great at haggling. They can make it seem that you are being unreasonable with your selling price. If you do not recognize their tactic, you'll end up with much less money than a cash sale.
Less stressful Selling ProcedurE
A cash sale is a win-win situation for you and the cash buyer. In your case, you won't have to deal with a lot of people, sign tons of paperwork, or work with a real estate agent who (in some cases) doesn't have your best interest in mind.
Aside from avoiding physical and mental stress when you get an all cash offer, you won't also be financially strained.
As mentioned earlier, a professional home appraisal is not required when you get a cash offer. Usually, appraisals are required by mortgage lenders to ensure that the house they're financing is worth it.
Since lenders are out of the picture in a cash offer, the home selling process is less stringent and home appraisals become optional.
House Issues are Resolved
Whether the house is being sold due to facing foreclosure, title and lien problems, or any other issues, you can still get a cash offer.
Cash buyers are usually not in a rush, so they can wait for problems to be resolved. In some cases, they'll even help settle the issues of the property so the sale could close.
No Repairs Needed
Perhaps one of the biggest benefits of accepting all cash offers is that you aren't obligated to make repairs, whether minor or major.
Repairs and renovations can easily cost thousands of dollars and the person buying your house will usually request that you pay for them (or you may be forced due to lender required repairs). When selling as-is to a cash buyer, you don't have to worry about any of this.
If you need to move to a new city due to a job relocation or you simply want to explore a different state, you have more chances of doing so if you opt for all cash offers. Cash buyers buy houses fast, so you aren't burdened with homeownership if you wish to move.
In fact, if you need to move in 2 weeks, communicate that to the all cash buyer and they'll surely do their best to close before the moving date.
No Commission Fees
There is no need for an agent when getting all cash offers because the house doesn't need to be staged or marketed. This can help you save money since you won't have to pay the average agent commission fee, which typically amounts to 6% of the home sale.
Not Much Paperwork
Much of the paperwork involved in a typical home sale is due to financing. Thus, expect that when you sell for cash, there are fewer documents you have to review and sign.
Of course, there would still be items you have to sign during the closing, but it is much less than a regular home sale. Further, you will be assisted by the closing attorney.
Less Risk of a Failed Sale and Fewer contingencies
Cash buyers don't usually back out of a sale once they've put in their offer. Meanwhile, a traditional house sale is at risk of failing if the buyer isn't approved for a mortgage loan during the underwriting process.
Accepting a cash offer has more certainty and you also have full control over the sale and its timeline.
Easy to Pass the Inspection
Cash buyers expect your house to be flawed, so they aren't that particular during the inspection. They only do inspections to formulate an accurate offer, not to list all the repairs you need to make before they proceed to the sale.
In comparison, inspections in a normal home sale are much more thorough. Home sellers are also expected to make repairs unless they want the sale to fail.
Odd House Layouts are Accepted
Even if your house has an odd layout, you can still get a cash offer. This is also true for houses that have other odd features like strange colored walls, shag carpeting, etc.
Cons of Selling a House to a Cash Buyer
Cash buyers buy houses at a lower price than market value. This is to be expected since they would have to shoulder the entire cost of repairs.
If you are in a rush to sell your house or need to spend thousands in order to repair damages, the lower home's sale price of a cash buyer may end up providing you with better net sales.
Not everyone who gives all cash offers is legitimate. Some buyers are real estate scammers who are good at preying on home sellers.
It makes sense to do background research if a cash buyer offers a too-good-to-be-true amount of money. Check their website, and search for reviews and testimonials that prove they are indeed legitimate.
Why is an All Cash Offer Better than a Traditional Sale?
While traditional sales can possibly net you more money if your house is in pristine condition, it also requires a lot from you physically, mentally, and financially. This is why many sellers opt for all cash offers.
Depending on your situation, you may find that selling your home for cash offers a less stressful process. This is especially true if your property has a lot of issues, like damages, foreclosure, etc.
Do You Need a Real Estate Agent for Cash Sales?
No. You do not need a real estate agent to get all cash offers since cash buyers can buy your home outright. However, if you want to work with one for peace of mind, most cash buyers do not mind dealing with an agent as well.
Note, however, that hiring a good real estate agent when selling your home would mean you have to pay a commission fee.
As the cash sale progresses, you'll realize that there's actually nothing to do on the part of the real estate agent; hence, the payment they'll receive in the end may not be worth it.
Final Thoughts: Benefits of a Cash Offer on a House
Getting a cash offer for your house is not for everyone. But there are many benefits that make it a worthwhile option. You're not only receiving cash in exchange for your property but also skipping the hassles of a traditional home sale.
If you're interested to sell your house for cash, connect with us here at Sell My House Fast. We provide no-obligation cash offers and close fast, so you get your money in your bank in as fast as seven days.
Fill out our form below or call us at (844) 207-0788 to get started!