Selling a house can be a lengthy and exhausting process, especially when you are looking for a fast and simple way. Family deaths, divorce, or debts often add extra strain. It is best to sell your house for cash whether you have financial issues or are ready to downsize; this way, you can avoid the traditional real estate market.
You don’t need to worry about commissions, repairs, or even closing costs, when selling your house for cash. You fill in a form, answer a few questions, agree on an offer, and then leave the rest to investors or the cash buyer.
Furthermore, selling a house for cash also usually means leaving some extra money behind. So, is selling your home for cash a better option?
Here, we will take a closer look at the pros of selling a house for cash, how to sell your house for, and where to request an offer.
What does it mean to sell a house for cash?
Selling a house for cash simply means that you sell to a buyer or an investor who can buy your home outright without any mortgage loan. If you agree to an offer of $410,000, your cash buyer will need to show you proof that they already have the amount in their bank account or something equivalent to $410,000.
This calls for working with buyers who typically buy off-market homes that need repairs or can otherwise be purchased at a discount. So, to ensure a cash offer for your house, you’ll need to consider a house-buying company or individual investors.
After completing a few steps to evaluate the home and make an offer, the buyer will present you with cash according to the offer price at closing. You won’t receive a briefcase full of cash like shown in movies. Instead, the money will be sent via a secure electronic transfer.
Reasons to sell your house for cash.
Now that you have an idea what it means to get cash for your house is selling your house for cash a good option?
Selling your house for cash can help you dodge the time hurdles involved with back-and-forth negotiations with multiple buyers. A cash buyer will offer you convenience and speed. With cash, the whole process gets seamless, leaving the seller stress-free.
Let’s review some of these advantages in depth.
1. Faster closing
When selling your house for cash, you can get the money for your house in less than two weeks, which is a lot better compared to the several months with a non-cash buyer. Mortgages now take an average of 43 days to complete from start to close, which means that it is very time-consuming. The lender will also cause additional delays due to the requirement for an appraisal to confirm the amount of funds they are willing to pay.
Overall, with a cash offer from a home-buying company or investors, you can close the sale in less than ten days. For sellers who are seeking quick cash, this is a huge benefit.
2. No house repairs or staging.
According to surveys, 80% of Americans prefer a move-in ready home to one that needs renovations. If your house needs repairs and refurbishing, then it can be challenging to find a traditional buyer.
When you consider house-buying companies to sell your house for cash, you can skip the repairs and high-end renovations that are typically required in an open market.
Investors buying homes or cash-for-homes companies often buy homes “as is” since they have the capital and expertise to renovate a house. This leaves the seller burden-free from all the repairs.
A cash sale also means that there is no need to stage your house or worry about disrupting schedules for repeated open houses.
3. Less closing fee
Apart from repairs and staging costs, a cash offer can save you from additional closing costs. Many house-buying companies will cover closing costs for the seller, which can reach 9% to 10% of the sale price.
These savings are a counterbalance to a lower-price offer. Studies found that the moderate cost to sell a house to a customary buyer is $31,308, so when opting for the cash offer option, you should always consider the selling costs associated with each option.
4. Smaller holding costs.
As long as you own a house, you are responsible for its holding or carrying costs, which retain utilities, taxation, insurance, maintenance, and other fees that take out a chunk of the amount each month.
In a lethargic real estate market, it could take as long as six months to sell a house. This can cause unnecessary delays of up to half a year to get the equity out of a home. At the same time, the owner continues to cover the costs from utilities to maintenance.
A cash offer will provide immediate relief from these ongoing expenses. Moreover, the longer your house sits on the market, the greater the chances of reducing the list price.
5. Stress-free process
A cash sale offers peace of mind along with financial certainty, especially for those who are facing life challenges. Home sellers with any complexities to the sale are better off with a cash buyer.
Those complexities include distressed property or costly restorations. A cash offer may come at a lower price, but it won’t axe your home being appraised at a typical charge. When you need sudden cash, a drawn-out sale can be an adequate stressor.
6. No interest rate
As home buyers face today’s higher interest rates, a buyer with cash in hand will eliminate the tension of getting a loan sanctioned for you. Mortgage interest rates have more than doubled since last year, making it hard for some future buyers to qualify for a home loan.
A cash buyer is not liable to rate hikes. An upsurge in interest rates or a change in the buyer’s acclaim history or employment status could revoke or delay a settlement just days before closing.
Without the chance of a financing issue, selling to a cash buyer or an investor is typically a simple and more confident process.
7. Flexibility
Whether you want to move in the following week or stay back for a couple of months, a cash sale typically gives you a glut of wiggle room; sellers who work with a house-buying company often set a move-out date that works best for them.
Process to sell a house for cash.
Working with a cash homebuyer varies from the traditional agent-assisted process in multiple ways. Here are 7 steps to sell a house for cash:
1. Requesting an offer
Go to the website and request an offer. Communicate whether you are selling your property “as is” or if you are open to making any required repairs.
2. Evaluating the house
A cash buyer or investor will gather information about your house and will present you with the offer they are willing to pay.
3. Reviewing contract
As a seller, you will go through the offer, including the contract price terms and conditions, and decide whether to accept or reject.
4. Completing inspections
Once you accept the cash offer, the buyer will conduct necessary inspections and appraisals, even if you are selling the property “as is”.
5. Closing the deal
As there is no lender’s involvement, there will be no lender-ordered appraisal or loan processing period.
6. Clearing title
The cash buyer will perform a title search to ensure that you can freely convey the property without any claims and judgments against the property.
7. Getting paid
The cash-buyer will wire the amount over to your bank account in a process that will hardly take two weeks and sometimes just days.Should I sell my house for cash?
If quickness, comfort, and certainty are your foremost preferences. In that case, selling your house for cash can be a suitable choice for you. It’s an almost certified sale where you go with the cash buyer, and you don’t have any junctures.
Without the threat of financing glitches delaying the sale or inspection junctures provoking the buyer to renegotiate, trading your house to a cash buyer or an investor will get you to the closing table much quicker and with fewer headaches. However, unless you sell to a cash buyer who plans on living in the home, you could be given a value of 10% to 15%. However, the quick sale may be exactly what you need.
Still on the fence? Investors buying houses’ simple sale forum offers a commitment-free way to test the waters. We partner with the most extensive network of cash buyers in the U.S. Enter a few details about your house online. We’ll provide you with a cash offer within a week, and you can close the deal in as few as ten days — no extra fees, agent commission, or prep work.