Selling a home for cash is a serious decision that isn’t for everyone. However, if you find you need to sell your home quickly, or your home is in disrepair that isn’t quite meeting real estate standards, selling your home for cash can be an excellent opportunity.
Accepting a cash offer comes with many benefits. We’ll be discussing a few rewarding benefits of accepting a cash offer on your house.
Here are five benefits of accepting a cash offer on your home.
What Does It Mean to Accept a Cash Offer on Your Home?
When people often think of a cash offer, they tend to think about someone coming up with a briefcase full of money or a wad of money in an envelope. However, this is not what accepting a cash offer means.
Accepting a cash offer means that the buyer has decided to purchase your home without any financing. What that means is that they are buying your home without applying for a mortgage. Therefore they are paying 100% of the house.
Whether a person buys your home with a mortgage or decides to pay cash for a home makes no difference to the seller. You still receive the money. However, getting a cash offer comes with a few added benefits that aren’t offered when a buyer uses a financing company to apply for a mortgage.
What Type of People Pay a Cash Offer on a Home?
One of the first things to keep in mind is that cash offers are more common than you might think. According to research from Attom Data Solutions, cash offers counted for nearly one-quarter of all home sales during the second quarter of 2020 (23.4%).
Knowing that these types of home sales are common may come as peace of mind for you as a seller.
You might be wondering who are the types of people who will buy my house with a cash offer? That’s a great question!
Here are a few examples of people or companies who purchase homes with a cash offer:
- Home Flippers – experienced real estate investors that will renovate and resell your home for a profit
- Buy and Hold Rental Investors – experienced investors that buy homes to rent them out for a profit
- iBuyers – online real estate companies that use algorithms to come up with a fair market value for your home
- Wealthy Buyers or Retirees – novice real estate investors looking to invest in either flipped, rental properties, or a second home
- Equity-Rich Homebuyers – novice real estate investors who are looking to trade in some of their equity for other real estate investments
In most cases, these people or organizations have a good understanding of real estate investing. However, wealthy buyers, retirees, or equity-rich homebuyers, are less experienced and may require contingencies before committing to buying a property.
Regardless of the type of buyer who purchases your home with a cash offer, here are five rewarding benefits of selling your home for a cash offer.
1. Sell Your Home Fast
Selling your home for a cash offer speeds up the home selling process. In most cases, homes accepting a cash offer close within two weeks. Not only that, many cash offers are accepted within 24 hours of listing the home.
So, if you need to sell your home fast, selling your home for a cash offer is an excellent opportunity for you. When you compare that with the average time it takes to close on a home the conventional way, it can take up to 46 days. Keep in mind this is if your home is in ideal condition to sell.
Many homeowners choose to go with a cash offer to save time during the home selling process.
One important thing to understand about cash offers is that they often go for less than market value. That’s especially true when the home needs repairs. However, if that isn’t an issue for you, selling your home for cash may be the best option.
2. Save Money on Fees
When you sell your home for cash, you can save money on agent fees. The typical agent fee is anywhere from 5% to 6% of the home’s sale price. This fee is usually divided between the listing agent and the buying agent.
Selling your home for cash can save money on some of these agent fees.
3. Save Money on Repairs and Renovation
When you sell a home for cash, you aren’t required to make any repairs to the home. For many homeowners, this usually represents dramatic cost savings. However, you should know that the cost for repairs may often come out of the total home price.
Additionally, you won’t be required to make any renovations to get your home ready for the market. On the contrary, the cash buyer will do that.
So what does this mean for you as a seller? It means less hassle about having to worry about costly repairs or renovations to make your home look presentable for the open market.
4. More Secure Than Typical Buyers
In most cases, selling your home for cash is more secure than the typical home selling process. That’s because, with traditional lending through mortgage companies, people can run into issues. Additionally, the home selling process comes with contingencies, such as a home inspection.
When you sell your home for cash, you can ditch the home inspection, and in most cases, other contingencies.
5. Save Yourself From the Hassle of Showings
Many homeowners have the stress of keeping their homes ready for showings. In some cases, this can mean putting your coveted possessions in storage and hiring a staging company to get top dollar for your home.
When you sell your home for cash, you don’t have to worry about showings or staging.
Does a Cash Offer Make Sense for You?
Accepting a cash offer comes with many benefits to the seller. If you think a cash offer makes sense for you, there are many options out there for you.
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