If you’re looking to sell your house, you’ve probably done some research online to determine the best way to go about it. If you want to make as much money as possible, you’ll probably go the traditional route of hiring a realtor, making improvements, showing your home, and negotiating with buyers.
But what if you don’t have time for it all? What if you don’t want to go through the hassle or spend the money?
Fortunately, there’s a viable option for you. Have you considered the benefits of selling a house for cash?
If not, we are here to tell you all about details. Keep reading for a quick guide on why selling to cash home buyers might be your best option.
1. No Home Inspection and Appraisal Fees
First, when selling a home to a traditional buyer, their lender will have certain stipulations. The mortgage provider will want to ensure the home is in good condition and worth every penny of the sale price. As such, they’ll require the home to be officially inspected and appraised.
The home inspector will walk through the home and note any damages or concerning issues. It’s their job to thoroughly evaluate the condition of your home so the buyers (and their mortgage company) know exactly what they’re getting into. A home inspection usually costs $300 to $450, depending on where your home is located.
The home appraiser is contracted by the bank to verify the value of your home. The appraisal will also cost several hundred dollars. One of the best benefits of selling a house for cash is that you can skip these processes (and all their fees).
2. Skip Repairs and Renovations
Traditionally, homeowners make grand efforts to prepare their house for the real estate market. This usually includes making repairs, updates, and other renovations. Did you know the typical homeowner spends over $21,000 prepping the house for the market?
Not only do renovations cost a lot of money, but they also require a ton of time. However, if the home inspection uncovered any major issues, you may not have a choice.
The buyer might demand repairs in a contingent offer. Some mortgage lenders won’t approve a house if there are certain damages or issues.
Conversely, cash home buyers will give you an offer on a house no matter what condition it’s in. Skipping expensive repairs and renovations is one of the biggest benefits of selling a house as-is. Click here to learn more about how to get your cash offer.
3. Skip the Cleaning and Staging
After the updates and repairs are completed, the next step for the traditional house selling process is cleaning and staging. Naturally, potential buyers want to walk into a home that’s cleaned to perfection. However, you may not have the time or energy to clean your entire house on your hands and knees.
Selling to cash home buyers allows you to skip the deep cleaning process. This also means you don’t have to stage your home, which can cost hundreds to thousands of dollars per month.
4. No Realtor Fees
One of the benefits of selling a house for cash is that you don’t have to worry about hiring a realtor or real estate agent.
While realtors can help homeowners find buyers, they’re also an expensive investment. The average realtor charges 3% to 6% commission when they help a homeowner sell a house. If you sell your home for $250,000, this means forking over $7,500 to $15,000.
Furthermore, during negotiations, many buyers will insist the seller pays both realtor fees. That increases your costs to $15,000 to $30,000. While a realtor can help you sell your home for more money, is it really worth it in the end?
5. No Negotiating with Buyers
In the traditional house selling process, you list your house on the market, show your home to potential buyers, and wait for an offer. Once an offer is made, you can make a counteroffer. Furthermore, the results of the home inspection can also push buyers to ask for repairs, lower pricing, and more.
If your ultimate goal is selling a house quickly, negotiating with buyers can be an extremely frustrating process. This is especially true if they’re trying to low-ball you, demand extensive repairs, or are being stubborn.
Selling your house for cash, conversely, is the fastest way to sell a house. You don’t have to give endless tours to stingy buyers or spend weeks negotiating.
6. Short, Guaranteed Closing
Speaking of selling a house quickly, did you know that the underwriting and closing process can take six weeks or longer? This is part of the traditional house selling process after the buyer and seller agree to terms. At this point, the mortgage lender verifies the details of the house and the buyer’s financial status.
Not only does this process take months to complete, but the bottom can fall out at any time. During the closing process, the buyer can still back out of the sale. They can also become disqualified for the loan if they:
- Max out a credit card
- Change jobs
- Take out a new credit card or loan
- Etc.
Any change in their financial status could make them ineligible for the loan. Even a new job that pays higher can disrupt the process. The lender will require several months of new income history to qualify the borrower.
One of the most amazing benefits of selling a house for cash is that it can be completed in as little as one to two weeks. This includes requesting an offer, receiving/accepting the offer, and closing on the sale.
7. A Convenient Solution to a Number of Problems
Because selling to cash home buyers is the fastest way to sell a house, it can be a solution to any number of time-sensitive problems. For example, if you and your spouse are entering into a divorce, you might need to liquidate your assets. In this case, you can sell the house as quickly as possible and split the revenue.
Alternatively, if you’ve fallen behind on making payments, your house could be facing foreclosure. In this case, selling the house immediately might be your only option.
However, not all time-sensitive scenarios are negative in nature. If you’ve been promoted or offered a job in another city, selling a house quickly might prevent you from having two mortgages. Selling to a cash buyer could free up funds for your next house and allow you to tie up all loose ends before you leave.
Want to Enjoy the Benefits of Selling a House for Cash?
As you can see, there are countless benefits of selling a house for cash. Ultimately, you need to decide what the best move is for your life and your unique circumstances. Is selling to cash home buyers the right choice for you?
And if you want more homeownership or consumer advice, stick around for a while and look through some of our other articles. Our blog was created to provide a wide variety of useful information to readers like you.
