Should You Sell Your Home for Cash: A Real Estate Company’s Perspective
If you are planning on selling your home, there may be questions you’re asking yourself. For example, should you sell it for cash? This guide will go into further discussion whether that’s possible.
If you are looking for a real estate agent that can answer your questions regarding selling a home, Teifke Real Estate will be happy to help. Check out their website here at https://www.teifkerealestate.com/we-buy-houses-austin/. Let’s get going and talk more about whether or not selling your home for cash is a feasible thing to do.
Is selling your home for cash possible?
The short answer: yes. The long answer, you will have plenty of benefits that come with selling your home for cash. One of the biggest benefits favors the buyer.
Specifically, they don’t have to go the traditional route of having to apply for a loan. Especially if they don’t meet some of the requirements like the minimum credit score or have a poor credit history. So it will benefit the buyer in this situation.
For the seller, a cash deal will be great for those that want to close a deal and fast. Plus, you won’t have to worry about the buyer backing out. While it can happen, the chances of that happening are less when it’s a cash deal.
When it comes to financing, it’s all done in one go. The cash is sent to the seller and no other further payments are needed. If you are a seller that wants to sell the house in as-is condition, you can do that with a cash deal.
This means the buyer is willing to invest in the needed repairs. Besides, they might have just enough cash to get it done. There’s one more kicker to cash deals.
If a house is being sold for cash, it usually happens before the public even knows about it. Which means it may never even hit the public listings along with the other homes in the area. The deal is done and done.
Are there downsides to selling a home for cash?
Yes. There are downsides. One of them is that you might settle for a deal that’s less than what you want.
The offers will be lower right from the jump. Buyers know that while buying cash is easier, they can try and haggle with the seller in an effort to save themselves a bit of extra cash. Negotiation will be a challenge, even without a real estate agent in your corner.
The offers you’ll be facing are ‘take it or leave it’ offers. Granted, the number of offers you’ll get will be low compared to having it posted online. If you want plenty of offers, you might as well just bite the bullet and get the home listed online.
This can include working with a real estate agent specializing in sellers. Plus, you may have to jump through a few more hoops before there’s even a sale. Plus, you may not receive cash upfront for the home if you are going through the traditional selling process.
Last but not least, the cash deals could be a hot bed for real estate related scams. For example, someone claiming to sell a home for cash may sucker someone to buy a home for a ‘below market value price’. If it sounds too good to be true, it just might be that.
That’s why it is important to protect yourself from those trying to scam buyers. Be authentic when it comes to putting your home up for sale. Take pictures of the property and invite interested buyers to check it out.
Who buys houses for cash?
There are certain types of homebuyers that will be more than willing to purchase homes for cash. Who are they? Let’s take a look:
House flippers that buy homes in not so great condition will purchase it with cash. They’ll buy it as-is and then put in a ton of money into repairs and renovations. Then they’ll sell it at an even higher price point.
That’s the basic model. Flippers will usually purchase these homes before they ever hit the listings. House flippers are either solo or work for a small company. Keep in mind that there are legitimate home buying businesses that will purchase homes in as-is condition.
Because of this business model, it has also led to real estate scammers claiming to be cash buyers. So it’s important to do your due diligence on whether or not they are the real deal. Look for authentic client reviews and use your better judgment.
These consist of tech companies with an emphasis on real estate. What these companies do is use software that will determine a home’s valuation. Once they have that information, they can make offers in cash on those properties.
They may also charge a fee (which may be a small percentage of the sale) price. For example, if a deal is locked in for $350000 and their fee is 1 percent of the sale price, you’ll walk away with $346500 in cash.
Since they might have plenty of cash, they may plan on snagging multiple properties at a time. They have the money, the technology, and perhaps the advantage of purchasing the home in as-is condition. Besides, they’ll even get someone to do the repairs for them before they sell it.
If you want to sell your home for cash, do so at your own discretion. You may run into common issues. However, you might find a buyer that will be able to get a deal done.
This may be a good route to take if you want to avoid the traditional selling route. It may be easy to get rid of the house if it’s in as-is condition. There are people that will be happy to buy it.
If all else fails, you can focus on getting it listed. But there may be obstacles that can arise such as putting in the repairs before it hits the market. Consider your options carefully based on your needs and preferences to see if selling your home for cash is the best route to take.