There are some serious advantages of selling your house for cash, but they come along with its fair share of disadvantages.
Does it make sense for you to sell your house for cash?
Let’s take a look at what you need to know.
Can You Sell Your House For Cash?
The short answer is: yes!
Actually, though, the term “cash buyer” isn’t entirely accurate. It’s illegal in the United States to close a real estate deal using physical cash.
What it actually means, then, is when somebody buys a house without any financing. In order to close on the purchase, they transfer funds with a cashier’s check or electronically.
What kind of buyer purchases a home in cash?
Typically, there are two different types of buyers that make all-cash offers. The first type is individual buyers who plan to live in the house. The second type is real estate investors.
Individual buyers who make all-cash offers have different interests than real estate investors.
Individuals who plan on living in the home will buy a house with cash to avoid paying interest on a loan, avoid paying closing costs, and to have their offer be more attractive to sellers. Some people might also be drawn to living a debt-free lifestyle or closing on a house quickly and without hassle.
When real estate investors purchase houses with cash, it’s typically to increase their cash flow, speed up the buying process, keep the closing costs low, avoid debt, and because it hedges against vacancy. Additionally, it gives them more control over the property, they don’t have to worry about the risk of foreclosure, it keeps their monthly expenses low, and it can give them a leg up with the sellers.
If you’ve inherited a home or recently gotten divorced, you might just want to sell your house fast for cash rather than going through the long, drawn-out process of putting it on the market. Another reason might be that the property is unique in such a way that it will likely not qualify for traditional financing.
Know the Value of Your Home
It can be difficult to know the precise value of your home. This is because your house is exactly worth as much as someone is willing to pay for it.
However, it is possible to identify a range of how much your house is worth. There are multiple different websites you can look at that will have estimates for the value of your house. These websites will likely all have different amounts, but they can give you a ballpark of what the value generally is.
The way that real estate agents determine how much you should list your home for is through comparative analysis. In this process, they find comparable houses that have sold recently in your area. If you are considering using more traditional means and hiring a real estate agent, you can have an agent out to give you a sense of what they think it could be listed for.
When you sell to a home buying company, they’re likely going to make you an offer on the lower end of the price range. This is because they are almost always buying the house ‘as-is,’ and because they are leveraging their ability to buy your house fast for a discounted price.
Determine If You’re Selling It ‘As-Is’
As stated earlier, many cash purchases by home buying companies involve the home being bought ‘as-is’. This means that the current state of the home is what the buyer will be purchasing. The seller won’t be fixing any problems as a part of the deal.
That doesn’t mean that you don’t have a responsibility to disclose known issues with your house, however. The laws regarding disclosure differ from state to state. All states do, though, require that the seller be honest in answering questions about the home.
When you fix issues in your home ahead of selling, such as structural issues, asbestos, or a leaky roof, it can improve the value of the home. This, of course, slows down the selling process as you have to take the time to remedy the problems. It also means you’d be putting money into the home before selling it.
Before listing a house on the market, many sellers will fix big and small problems. They’ll also work to make sure that their home is well-maintained and often repaint it and do some landscaping to boost the curb appeal. Some will even hire house-stagers to make the home as appealing as possible to buyers.
If you are looking to sell your house fast for cash, then you can avoid all of this hassle and expense by simply reaching out to SellforcashAZ.