The Pros and Cons of Selling a House to a Cash Buyer
When it comes time to sell a home, people have several different options. Most people choose the traditional way and hire a real estate agent. Others, attempt the for-sale-by-owner option and try to sell their house without a real estate agent.
But what if you don’t have the time or money to sell your house the traditional way? What can you do?
If time is of the essence or you don’t have the funds to make necessary repairs on your home, you need to consider selling a house to a cash buyer. However, before you make any big decisions, it’s important to be properly informed.
Keep reading for our list of the pros and cons of selling a house as-is to cash buyers.
Pro: Expedite the Selling Process
One of the best benefits of using cash buyers is that you can sell a home fast. Cash home buyers typically inspect the property and give you an offer within a couple of days.
Even more importantly, if you accept the offer, cash home buyers can close in as little as seven days. Alternatively, most traditional house sales take at least a couple of months to go through.
Pro: No Realtor Fees
Another perk of selling a house to a cash buyer is that you can avoid hiring a real estate agent. While real estate agents can be incredibly helpful for selling your home, they can also charge a fortune.
Most real estate agents charge 3% of the home’s value. However, with two real estate agents (one representing each party) you could be losing up to 6% of your revenue. Additionally, some realtors charge extra fees based on the resources and methods they use to sell your home.
Pro: No Costly Repairs or Updates Necessary
As noted above, selling your house the traditional way can take months. Part of the time involved comes from preparing your house for the market, as many homes are not show-ready.
Depending on the home inspection, sellers are forced to make small to large repairs. This includes anything from patching up drywall to replacing the entire roof. Obviously, these things take time and money you may not have.
If you’re thinking, “I need to sell my house as-is,” you need to look at cash home buyers.
Pro: No Tedious Cleaning
Though it may not fall high on your list of annoyances, keeping a home clean and in perfect condition for home tours can become quite tedious. This is especially true if your house stays on the market for months on end. It’s even harder if you’re still living in the home.
Accepting a cash offer means selling your house in whatever condition it’s in. Not only do you not need to make repairs, but you also don’t have to spend time or money making sure it’s professionally cleaned.
Pro: Guaranteed Approval
One of the most disappointing things you can experience is having a real estate transaction fall through at the last minute. Unfortunately, this happens all the time.
If you’re selling your house traditionally and have accepted a buyer’s offer, there are no guarantees. Several things can happen that will disrupt, prolong, or negate the sale. This includes:
- The buyer doesn’t get approved for the loan
- The house appraisal comes back too low
- The house inspection reveals major issues
- The buyer changes something about their finances during the closing process
- The buyer backs out for any reason
- And more
There are even some cases where buyers are discovered to have committed tax fraud during the underwriting process. This results in them being disqualified for the loan.
Unfortunately, simply taking out a new credit card could even be enough to change their credit approval. Selling a house to a cash buyer means not worrying about a sale falling through.
Con: No Professional Representation
To be objective, it’s only fair that we talk about some of the cons of selling a house to a cash buyer. If you go this route and work with a cash home buyer company, you won’t need a realtor. However, some people prefer to have a professional real estate agent in their corner when it comes to selling their house.
If you get a low offer for your house, you may not know whether or not it’s a fair deal or not. Selling your home with the help of a real estate agent grants you access to their expertise.
Con: Potential for Scammers
If selling a house quickly is your top priority, cash home buyers are your best bet. However, as in any industry, there is a potential for fraud or scammers.
For example, if you try to sell your car on Craigslist, you’ll likely have a ton of fake cash offers. They’re easy enough to sniff out but one can never be too careful.
The same goes for selling a house for cash. Do your research before making any decisions or signing any contracts. Look up customer reviews and verify the company through Google reviews.
Con: Lower Selling Price
Finally, when selling your house as-is, you can’t expect to get top-dollar for the sale. One of the reasons people take the time and put extra money into selling their home is because they can ask for a higher price.
Spending money on small repairs and sprucing up a house can significantly increase its value. Therefore, selling a house to a cash buyer will somewhat limit how much money you can get.
Do You Think Selling a House to a Cash Buyer Is Right for You?
There are a lot of reasons why someone might need to sell their home fast or as-is. Perhaps you have a new job offer in another state? Maybe the bank is going to foreclose on your house and you need to sell it immediately?
No matter what your situation is, if you think selling a house to a cash buyer is the right choice for you, we can help. Contact us today if you have any questions or to get a free quote.