How To Sell A House For Cash
Buyers that are offering cash for homes are instantly tempting for stressed sellers. They offer the opportunity for homeowners to enjoy a quick closing, less hassle, and not having to wait so long to list a house on the market. Read on to learn everything that you need to know before you sell your house for cash. Selling a house for cash isn’t as crazy as some people think it is!
Are Cash Home Buyers Real?
At first glance, most of these cash buyers seem too good to be true. They offer a quick closing, fast sale, and you get a cash offer that is close to fair market value. The old adage “if it seems too good to be true, it usually is” makes you want to shy away from these cash buyers. However, they are legitimate. Technology has helped iBuyers corner the market of homeowners that are eager to sell their homes fast.
How To Sell Your House For Cash
The process for selling your house for cash to an iBuyer, or any cash buyer, is extremely simple. It’s a similar process to selling your home to a person that has a mortgage, but without the hassle of negotiating that comes with a traditional sale and a faster closing.
Selling your home to a person that is interested in a cash sale is another option. Sometimes, these people will work with a real estate agent. Other times, experienced real estate investors will seek out a cash sale on their own. The entire process of selling a home to a person or company that has cash is simply easier.
Request An Offer From An iBuyer or Person
There are plenty of real estate investors online that are willing to offer you cash for your home. To start the buying process, request an offer. The company will take a look at your home, including the location of the house, to make sure that it meets their criteria. Then, an iBuyer will determine a fair offer that is close to fair market value and give you a cash offer.
If a person is interested in paying cash for the home, ask them what their offer is. This will set the stage for negotiations moving forward. Often, buyers will give a lower offer, and it’s important to let them know if you consider it to be too low.
When considering a person or company to purchase a home, it’s important to take the condition of your home into account. Certain companies specialize in buying distressed properties and will take the cost of repairs into account when considering the sales price. Other companies refuse to buy these properties. You don’t want to complete the entire process only to find out that they don’t want to buy the house after all.
Evaluation
After a general cash offer online, homeowners can either accept or reject the offer. Homeowners that are still interested in selling their home for a cash offer can then schedule an inspection. This is a thorough evaluation that will determine any repairs that may be needed.
People that are paying cash for a home will have the home inspected by a professional to determine if they will need to make repairs, etc.
Contract Offer
After this evaluation, homeowners will receive a final offer. This is the offer amount with estimated repairs deducted. Sellers can then decide if they would like to follow through with the offer or take their chances elsewhere.
Individuals that are interested in buying a home with cash will also consider a contract, but there is more room for negotiations with a cash buyer than with an iBuyer.
Reviewing The Contract
It’s important to carefully review the contract. Make sure that you know how much cash you are going to pocket after repairs, closing costs, etc. Sellers that are going to be paying off a mortgage will need to take that into consideration as well.
If the terms are not completely listed on the contract, make sure to ask the buyer what the terms of the contract are. Some buyers have a cancellation fee while others do not, for example. Understand the terms and conditions of the contract before signing on the dotted line.
Proof Of Funds
It’s important to make sure that you’re not getting scammed by someone claiming that they have enough cash to buy a home. This can happen both online and when working with a person. Make sure to ask the person or company for proof that they have the cash to purchase the home.
Completing Major Repairs, Etc.
Homeowners that have agreed to complete repairs before selling their home will do that after they have signed a contract. However, if you have agreed to sell the property as-is, you won’t have to worry about anything else.
Closing Time
The beauty in working with a cash buyer is that after you are done with the beginning of the process, it’s time to close. This is because you don’t have to wait for a lender-ordered appraisal or deal with the buyer’s financing possibly falling through.
Sell House For Cash Pros And Cons
There are quite a few pros and cons to selling your house for cash. It’s always important to consider them both before you sign a legally binding contract with a cash buyer.
Pros
Fast Home Offer
When you sell your house for cash, you get an offer within days. An iBuyer isn’t going to waste your time, or theirs, by dragging out the selling process. Instead, they make it quick and easy so that you can sell your home as fast as possible.
Quick Closing Process
Not only will you get a fast cash offer for your home, but the closing process will also be quick and painless. Cash buyers for homes are known for wanting to close the deal quickly, and you don’t have the same paperwork that working with a non-cash buyer requires.
This makes cash for home offers great for anyone that wants to get rid of their home fast due to specific circumstances, such as a divorce or job change.
Less Stress
Working with a realtor often involves selling your home on the housing market in a more traditional fashion. While there is nothing wrong with that approach, it can be more stressful. Homeowners will need to deal with home repairs and staging their home, something they won’t have to deal with when they sell their house “as-is” for cash.
Cons
Less Cash In Your Pocket
The offers made by cash buyers are typically lower than the lender offer you would get if you put your house on the market. While these offers are more convenient, you wind up paying for the convenience.
The Sale Is Not Guaranteed
You won’t have to worry about the sale falling through due to a person not having financing, but that doesn’t mean that it’s guaranteed. Some cash buyers try to sell the home as soon as possible. They will find a buyer before closing the deal. If they can’t find a buyer, they might not buy the house. Make sure that you ask your buyer questions to understand how the process works. This will tell you whether you more than likely have a guaranteed sale.
Deductions From The Price
Any repairs, closing costs, fees, etc. will be deducted from the final price. Because of that, you’ll discover that you don’t bring home as much money as you think you will. This is often stated in one way or another in the contract. Make sure that you know how much the company will be deducting for repairs, etc. to guarantee that you don’t get ripped off.
No Competing Buyers
Cash buyers give you an offer that you can take or leave. When you put your home on the market, competing bidders can drive the price up, helping you put more cash in your pocket. That isn’t going to happen when you sell your home for cash.
Should You Sell Your Home For Cash?
That depends on your situation. If you’re in a situation that calls for selling your house fast, a cash buyer is the best way to do that. Situations that may mean you don’t have time for things like repairs and staging the house will also make cash buyers more appealing. Perhaps you are tired of keeping up with a rental property or can’t afford the repair costs. Whatever the case, finding someone that buys homes for cash and offers a fair purchase price is a great idea.
However, if your home can sit on the market for a few months without you feeling stressed, it might be worth it to consider not taking a cash offer. You can complete repairs on your own at a cheaper cost. If the market is hot, you might get a higher price for your home than you expect. Overall, it can lead to more cash in your pocket as long as you don’t work with a real estate agent that charges an extremely high commission.
Is A Cash Buyer Better?
Sometimes, a cash buyer is better. They are often considered better if you’re in a hurry because you will be able to close quickly. However, cash buyers result in you having less money for your home. If a person has enough cash to buy your house, they are more likely to think they deserve the house over someone else and give you a lowball offer simply because they are paying in cash.
Selling Home As Is
One of the great things about selling your home for cash is that you can usually sell your home as is. Someone else will deal with repairs, etc. and you can simply move into your new home. However, there are a few things to keep in mind if you’re planning on selling your home as is.
You’ll Pocket Less Cash
Companies will deduct every single repair and a cleaning fee from the overall price of the house. If your home has a significant number of repairs that need to be done, you will bring home much less than the original offer. While you don’t usually deduct for repairs when selling a home as is, you wind up selling your home at a cheaper price so you still pay for the repairs anyway.
However, this doesn’t mean that you are going to walk away with nothing. Companies will give you a list of repairs, and let you know how much they are going to deduct for those repairs before you sign the final contract.
Quick Sale
When you sell your home as is, it offers you a quick sale. This is because there are no negotiations regarding repairs that will be completed, etc. It’s well known in the real estate world that people often sell a home as is because they want to close quickly for one reason or another.
Homeowners that list their homes on the market will find that they attract more buyers because homes that are sold as is typically sell for less. Most home buyers find it appealing because they can fix up the house themselves. Companies and buyers that flip houses will also be eager to buy an as is home.
Disclosure Is Still Important
Different states have different laws regarding what homeowners are required to disclose. Some states have laws stating that the presence of lead paint must be disclosed. Others state that homeowners must disclose anything that could encourage a buyer not to buy the house. This is to make sure that the person buying the home makes an informed decision. Double check the laws in your state to make sure that you disclose everything necessary.
FAQ
Are companies that buy houses for cash legit?
Yes, these are legitimate companies that are licensed to conduct business in the United States. Companies like OpenDoor, Zillow, and OfferPad are just a few of the legitimate companies you’ll come across that are actual businesses.
How much do you lose selling the house as is?
Homeowners will often lose thousands of dollars by selling a home as is. This is because potential buyers have to consider how much they will spend on repairs, etc. after they purchase the home.
Should you work with an iBuyer?
If you want to sell your home fast for cash, an iBuyer is a great way idea. These companies are known for closing fast and paying cash. However, if you want more money and don’t mind the stress of the real estate market, an iBuyer might not be a great idea for you.
Here at CyberHomes, we buy houses for cash, but that’s not all that we do. Contact us today to discuss your situation. If we can’t purchase your home, or you decide not to sell it for cash, we can help you find a solution for your current situation.
