According to the most recent statistics, the average home in the US spends around 22 days on the market these days.
This is a very short period, but it doesn’t account for the time involved in preparing the house for sale and finalizing the closing process.
Do you need to sell your house faster than that? You could consider selling your home to a cash investor. These people will take your home off your hands in a flash, but you’re probably left wondering, ‘what’s the catch?’.
Keep reading for more about the benefits of accepting a cash offer on your house and find out for yourself.
Benefits of Accepting a Cash Offer on Your House
There are several instances where accepting a fast cash offer may work in your favor. These are:
- You need cash fast
- You’re facing foreclosure
- You can’t find a buyer for a run-down home
- You need to move fast
In these cases it’s tempting, and sometimes a good idea, to accept the best offer you can get for your home and move on. For instance, if an elderly parent needs to move to assisted living, the cash you get for their home could assist with those costs.
Save Time With a Cash Sale
Time savings are the best benefit of selling your home this way. You can usually get cash for your home within a few weeks of signing the agreement.
A traditional home sale by the owner or with a real estate agent involves several time-consuming steps, like:
- Home value appraisals
- Listing the home and marketing it
- Waiting for offers
- Negotiating the price
- The mortgage approval process
- Closing procedures
If your buyer doesn’t achieve the mortgage they need, you’ll need to start the process all over again.
Most cash sales involve just a few simple steps. These are:
- Providing your home’s details
- Receiving a preliminary offer
- Undergoing a home walkthrough
- Agreeing to a written final offer
- Receiving your cash
In many cases, cash investors allow you to choose a closing date that suits you. This comes in handy if you can’t move out of your home immediately.
Save Money When You Sell Your Home for Cash
It costs money to maintain a property while you wait for this drawn-out procedure to conclude. You’re still responsible for your mortgage payments, property taxes, HOA fees (if applicable), plus running costs such as utilities.
If your home needs repairs, you’ll likely need to pay for these before you find a buyer for your home. Few lenders will grant mortgages to buyers who want to purchase an as-is property.
Once you’ve completed your refurbishment, you must pay a home inspector to give your property the all-clear. In serious cases, for instance, if your home has fire damage, you’ll struggle to find a buyer in the first place.
Then there’s the issue of the real estate agent’s commission. You’ll pay around 5% of the value of your home to your realtor for their professional services.
Coupled with the numerous closing costs associated with selling a home, you could end up getting a lot less money for your home than you expect.
Avoid Haggling and Inconvenience
Any home sale involves a negotiation process between buyer and seller. Often this results in time-consuming and frustrating back and forth between the party’s realtors.
You’ll likely need to deal with a host of agents, photographers, home inspectors, appraisers, home stagers, potential buyers, lawyers, and contractors during the process of selling your home, too.
Selling to a cash buyer is a take-it-or-leave-it situation. These investors know what they can afford to pay for your home, and they don’t budge on their price.
This makes the process more transparent, faster, and less stressful.
Drawbacks of Accepting a Cash Offer on Your House
There are two major disadvantages associated with cash home buyers. These are:
Low Prices
Cash home buyers make money from buying houses at around 70% of the current value of the house. They base this figure on home prices in your area, local rental rates, and the cost to refurbish the home if necessary.
Once they’ve purchased your home, they’ll either sell it to someone who specializes in fixer-uppers or refurbish it themselves. After that, they may rent the house or sell it for a profit.
In truth, you could do this yourself, if you had the time and money.
Unscrupulous Operators
Most cash home investors are legitimate businesses looking for a win-win situation. Yet, it’s vitally important to check out a company’s credentials before you approach them.
Cash investors don’t need a real estate license to operate and aren’t bound to a code of ethics like a Realtor® is.
These are some red flags to look out for:
- Verbal instead of written agreements
- Upfront application fees
- Promises to sell your property after you sign over the title
Legitimate cash investors don’t do any of the above. They’ll provide a written offer after viewing your home and complete the transaction at a recognized title deeds office.
Franchised cash home buying companies allow local buyers to operate under their banner only if they comply with stringent ethical standards. The We buy Houses brand works slightly differently, but it has a good name in the industry.
Working with one of these can give you extra peace of mind, but you should still review individual branches before you accept an offer from them.
Online reviews and company ratings can tell you a lot about how a company operates and its customer service levels.
The Bottom Line
The major benefits of accepting a cash offer on your house are savings on time and money. They’re a good solution for homeowners who’ve inherited an unwanted home or are trying to sell a house in poor condition.
As long as you work with an established, reputable company, selling your home for cash can work in your favor. Get in touch today, to find out what We Buy Houses Nashville can offer you for your home.
