Advantages in Selling to a Cash Buyer:
Cash sales close much faster when compared to the four to seven weeks it takes during a conventional sale. Unlike a traditional sale, there are fewer things that can go wrong during the escrow period and most things can move forward immediately after home inspections take place. Because of this, a cash home sale can move forward and get you closed on the transaction within as little as one week. What does this mean for you? Less time, commitment, paperwork, and ultimately you’ll have cash in your pocket from the home sale MUCH sooner.
Cash sales are usually “as-is,” meaning you won’t have to worry about costly repairs last minute in order to secure the sale. If a buyer is willing to pay for the home outright, that usually doesn’t come along with strings attached and multiple contingencies. If the cash buyer has seen and inspected the home and is comfortable enough to commit to a cash offer, this usually means that they aren’t interested in long, drawn-out negotiations over repairs. In most cash sales, the cash buyer actually anticipates and intends to make needed repairs to the property. You can count on most cash offers to be a bit lower than conventional loan supported offers, but the discount usually supports the repairs needed to be made by the buyer. If you’re like many buyers who don’t want to spend the time or money to make upgrades before selling, this can be a great benefit.
Cash sales are solid offers that include more certainty. You won’t have to worry about waiting three weeks for your prospective buyer to secure financing, or about getting denied at the last minute and having to back out of the deal. If your home is appraised for less than the price a buyer is willing to pay, for example, and they are purchasing your home with a loan- their lender will not lend unless the price is discounted (or the buyer is able to cough up more cash).
Most commonly, your buyer’s qualifications for their loan change as the lender digs deeper into their finances. So, if your buyer has any debt skeletons hanging out in their closet, mortgage lenders WILL find it and may cancel the loan as a result. All of these complications with securing financing are avoided in a cash sale.
Some Ways to Protect Yourself in a Cash Transaction
While there are a lot of guarantees when it comes to a cash sale being simpler and more reliable, we still encourage you to protect yourself and do your research. To ensure that the cash buyer is reputable or trustworthy, ask for proof of funds before you agree to or sign anything. Also- be wary of cash buyers who add multiple contingencies for inspection, as these buyers may be looking to ask for price adjustments and reductions afterward.
Some other ways to protect yourself from fraud, especially if the buyer is claiming to be a qualified investor, be sure to look the company up online and ask for references. You can also check your local BBB to ensure that they are an accredited business.
Red flags to look out for include: buyers who are willing to “purchase” your home sight unseen even given the opportunity to, communication that only takes place via email, and any other suspicious activities like how the buyer would like to pay you.
Reap the Rewards of a Cash Sale by Selling Direct
If you think that you would benefit from the convenience and speed of a cash home sale, then we suggest getting in touch with a home buying specialist. There’s no obligation to accept or move forward once you receive an offer (no strings attached). If you don’t like the cash offer, that is fine. If you like the offer, a specialist can walk you through the simple steps ahead and you can literally PICK your closing date. For some, that assurance is a big stress reliever. Whether you need to plan the closing date around when you purchase your new home, or maybe when your tenants are able to vacate, we can flex the date around your schedule and close as quickly as you need. Call to speak to a home buying specialist today to learn what a cash offer could look like for you.Views: 6