In 2022, roughly a third of homes in the U.S. were sold to cash buyers, an analytical report by Redfin – a realty firm – shows. This represents an 8% jump from the previous year and is a high last seen in 2014.
If you’re considering taking this route, you can find we buy houses Pueblo here and get a cash offer for your property from a reputable buyer. But why is a cash buyer a popular option among home sellers? The reasons hereunder could shed more light:
1. Faster Closing
Taking the conventional route while selling your house usually takes time. Besides finding a realtor, you have to fix up your place, list it, and have 49 people traipse through your home before you can find a suitable buyer. And that’s the beginning.
You also have to contend with lots of paperwork – which can be exhausting. Plus, you have to negotiate with a buyer and patiently wait for a mortgage lender to approve the loan – which can take weeks or months.
A cash sale expedites the process, allowing you to close quickly and get on with your life – no mortgage applications to worry about or inspections to endure. You also won’t get caught up in the back-and-forth negotiations that can drag on for months or risk a buyer’s denial from mortgage lenders. In short, you can sell your home for cash in two weeks or less and begin a new chapter.
2. No Need for Repairs
Selling a house for cash means you can skip the repairs. And while you may not get top dollar for your home, it does make sense for some sellers.
For example, let’s say you’re relocating for a new job and can’t bring yourself to be a landlord from afar. Or, you probably don’t have the wherewithal to repair the house, as would be a requirement if you plan to sell it via a realtor. Besides, following the conventional path means getting an appraisal before sealing the deal – increasing costs and dragging the process.
Cash home buyers don’t mind the state of your home and generally purchase it as-is. As such, you won’t need to take out a loan for renovations. You can also complete the transaction without fuss if you get a reasonable offer.
3. Less Hassle
A home appraisal can cause stress if it reveals a home’s value is lower than previously estimated. Plus, the assessment can make a deal fall through, forcing the seller to re-negotiate with the buyer or lower their price.
In contrast, a cash sale implies your home’s actual value isn’t much of an issue as long as you agree on the price with the buyer. Moreover, the time-consuming inspections that often derail conventional sales are stressful.
Plus, who wants to list their property and spend months with their fingers crossed, hoping for an offer that might not come? Selling your home for cash means you can get a guaranteed offer, meaning less hassle. You’re also in more control as you don’t have to rely on factors beyond your control to align so that you can get paid.
Some cash buyers also handle the paperwork, alleviating the hassle of selling your home. You also aren’t called upon to review extra reports such as a home inspection or appraisal. That said, you shouldn’t merely jump headlong into a cash offer.
Before accepting an offer, read the contract carefully and confirm it’s legitimate. Alternatively, it won’t hurt to consult an attorney and let them review the paperwork before committing to the sale.
4. No Commissions to Pay
Listing a house with a realtor often implies paying commissions. For instance, a real estate agent may demand a 6% fee of the total sales price. Case in point, if you sell your home for $100,000, you’ll pay $6,000 to the agent and other add-on fees such as advertising, repair costs, and more – depending on your agreement.
But when you sell directly to a cash buyer, you don’t need to worry about commissions or other additional charges. As a result, you could have more money in your pocket.
Cash buyers generally want to clear the process quickly. Thus, if your home is a good fit, they’ll likely make you a fair offer. If you’re in a financial fix or can’t wait for a conventional sale, selling your home for cash could be the perfect solution. That said, don’t let the excitement of a quick sale make you forget to evaluate the pros and cons or to do your due diligence.
