Are you thinking of selling your house for cash? With the real estate market constantly changing and more people are choosing to sell their houses quickly, a cash offer can present several advantages to homeowners.
So, what are the advantages of selling a house for cash? Read on to explore the advantages in detail and by the end of this article, you’ll be able to make a better decision if a cash sale is right for you.
What is a cash offer?
Selling a house can cause stress, but cash offers can make the process easier. When dealing with a cash buyer, the seller has several competitive advantages; such as fewer conditions for sale, fewer costs and faster closing times associated with the transfer of ownership. Cash offers also eliminate cash flow risk for the seller because cash buyers are typically more reliable than buyers who have to get financing, in general.
If you want to sell your house quickly and hassle free, consider selling your house for cash. Three of the main reasons why a cash offer is different from a traditional home sale for sellers are listed below:
Contingencies
A home sale contingency is a type of clause that is usually included in a real estate sales contract. For example, one such contingency put in place is that the transaction is dependent on the sale of the buyer’s home. If the buyer’s house sells by the specified date, the contract moves forward. But if it doesn’t, the contract is terminated.
Another contingency may focus on the buyer obtaining a mortgage. If the buyer cannot get a mortgage, the transaction terminates.
Of course, buyers have an option to include an inspection contingency; because buyers would want to ensure that their investment is worth it.
Appraisal
Usually, when selling your house for cash, there is no need for a home appraisal. That is because, appraisals are usually required by lenders and with no lenders involved, this is not a problem at all.
But keep in mind that it is not always the case. For example, an investor may want to be assured of the return on his/her investment; therefore, they may still want to get an appraisal done. Though it may happen sometimes, a home appraisal is not necessary to make a cash transaction.
Closing
Instead of jumping through hoops of bureaucracy, heaps of documentation, approvals here and there, closing on a cash offer requires signing the settlement statement, title and deed. That’s it!
A wire transfer of a cashier’s check replaces loan documents for payment. This saves time, and costs because there is no need for lender fees.
Once all the paperwork is completed and payment is confirmed, all you would need to do is to hand over the keys to the house and that’s it – quick and simple!
Benefits of selling a house for cash
First and foremost, selling your house can be a big decision to make. And selling a house in the traditional manner can be a long-winded and complicated process. If you think that cash offer isn’t for you, here are some benefits in selling a house for cash.
1. Hassle-free
Putting your house on the market is a big hassle. Not only do you need to prepare your home for viewings; you would also need to find a realtor, take real estate photos and you would have to wait for offers to come in.
With cash offers, you don’t have to think about mortgages, contingencies, financing approvals the way it’s done with traditional sales scenarios. It helps save time and saves you from a lot of stress in what is already an overwhelming process.
If you don’t have the time or capacity to put your house on the market the traditional way, selling your house for cash is the easiest, less stressful way to consider.
2. Faster closing process
On average, it may take 6 to 9 months for a house to be sold if you put it on the market and go the traditional way.
What is the difference? Cash offers do not need mortgage applications and multiple inspections. It’s a direct route between signing the contracts and transferring the title to the buyer. In addition, there is no need to be engaged with lender’s lengthy processing times or denials. It is one thing less to think about.
3. It’s not expensive
By now, I think you know that putting our house on the market is an arduous task. But did you know that it can also be expensive? The extra costs may come from hiring a real estate agent, lender’s fees, photos, marketing and even staging your house. These costs can add up rather quickly.
But when accepting a cash offer from a buyer, you are saved from these unnecessary costs.
Sure, there are certain advantages to taking offers from non-cash buyers; but, it all depends on the market, mortgage rates and inventory.
4. No inspections or repairs
Does your home need repairs that might affect the overall value in the traditional selling process? Maybe the seller needs an appraisal before closing the deal? These activities costs time and money, as well as adding to the complexity of the home selling process.
But when you sell your house for cash, these activities would not matter. Cash buyers can purchase the house exactly how it is!
5. Convenience
Selling a home can be hard in any market. Thankfully, if convenience is what you are after as a seller, accepting a cash offer is the best way to go. By choosing a cash offer, you wouldn’t need to worry about the hassle of screening buyers and skipping the lengthy closing process.
Overall, accepting a cash offer brings the assured peace of mind that your house is going to get sold without the hassle. That is, I think, what every home seller wants and needs.
Who are cash offers best for?
Usually, cash offers are the best solution if you are looking either for speed or convenience. It is a blessing for those who need cash quickly.
Whether you’re dealing with a family emergency, lack of time to handle complex documentation, or you have more than enough on your plate and don’t have the capacity to market and advertise your house properly, cash offers makes it easy to sell.
The entire process only takes a few weeks compared to the months required by traditional methods.
Get a cash offer!
I think you are now sold on the idea of selling your house for cash.
Contact us now for a free, no obligation consultation and let’s see how much your property is worth!