Selling a house comes with many obstacles. You have to find buyers, negotiate, hope they can secure a mortgage, and repeat the process if the deal falls through. Some homeowners want to speed up the process. They want to move on from their former home or finance a newly acquired property.
It’s possible to sell your house fast for cash regardless of its condition. We’ll walk you through the entire process and share some pros and cons.
Submit an online application form to inquiry about Angel Oak Mortgage Solutions financing options.
Older homeowners can get peace of mind and added financial security with a reverse mortgage from AAG.
Buy a home or refinance your existing mortgage with Zero Mortgage.
Who Buys Houses For Cash?
You’ll have a smaller pool of buyers and companies if you only take cash offers. This way, you can narrow your outreach efforts to these two groups.
Investors
Some investors buy homes for cash to score better deals. These real estate investors can list the property at a higher price for buyers who need financing. Some investors will change the property into a rental or fix it before putting it back on the market.
Some investors work alone while others pool their resources and make cash offers for several homes. These investor pools operate “We Buy Houses” companies. Some have a local focus, while others buy homes spread across many locations.
iBuyers
iBuyers are tech companies that use software to make offers on homes. You can quickly receive and accept a cash offer from an iBuyer.
The Process of Selling Your House For Cash
Selling your house for cash takes less time than waiting for a loan’s approval. However, the process still contains several steps.
- Cash buyers present their offers, and the seller selects one
- The buyer verifies owning sufficient funds to make the purchase (1-2 days)
- The cash goes into an escrow
- A title search takes place (roughly 3 days)
- Buyers hire an inspector if they didn’t give up that right in the purchase agreement
- Buyers may conduct a home appraisal
- The buyer reviews the property one more time before closing
- After the closing, funds move from escrow into your account
A cash offer lets you skip several steps of the process. Of course, a deal may still fall through the cracks, but you have a better shot at closing a cash offer deal.
Pros Of Selling Your House For Cash
Selling your house for cash has many advantages. We’ve highlighted some of them below.
Fast Offers
Cash offers come in quickly, especially if you use an iBuyer. You can receive a cash offer within two days. Going the conventional route delays the process and can leave you stuck with your home longer than necessary.
Quicker Closing
Cash offers escape several hurdles from financed offers. You don’t have to wait for loan approval. If the bank doesn’t accept the buyer’s mortgage application, you will have to find a new buyer. You’ll also save money on fees and avoid realtor commissions.
Sell As-Is
Some homes need work. You can make repairs and invest in renovations, but these costs can sink you into debt. Some people want to walk away from a house without incurring extra costs. Cash offer buyers can purchase your property as-is.
No Contingencies
Contingencies are clauses in contracts that let the buyer or seller back out of a deal before it gets finalized. Sellers rarely set contingencies, but buyers may add them to reduce risk. If a buyer acts upon the contingency, the sale becomes void, and you’ll have to look for a new buyer.
Cash offers avoid most if not all of the contingencies. As a result, you’ll have fewer hurdles blocking you from a closed deal.
Submit an online application form to inquiry about Angel Oak Mortgage Solutions financing options.
Older homeowners can get peace of mind and added financial security with a reverse mortgage from AAG.
Buy a home or refinance your existing mortgage with Zero Mortgage.
No House Staging
House staging makes your property look nice for potential buyers, but it can also get expensive. While you can save on house staging, most people spend over $1,000 to make their homes look nice.
Selling your house for cash attracts people less interested in a house staging. These buyers see your home as an investment instead of a forever home. iBuyers and investors will polish up the home later and do as they desire. Therefore, they are not interested in the staging.
No House Showings
Selling for cash lets you avoid house showings. You don’t have to promote your listing and find people to show up. You could get a realtor to help with the marketing, but you’d then pay a commission on the sale. Selling a house for cash saves you time and a realtor’s costs.
Cons Of Selling Your House For Cash
Selling your house for cash has many benefits, but it’s not perfect. We’ll cover the cons of taking a cash offer for your home.
Lower Price
You won’t command market value for a cash offer. A cash offer reduces your stress and leads to a quicker sale. Buyers know they are helping you out with a cash offer and expect to pay less for your home. Homeowners must accept lower prices but avoid an unfair deal as well.
The Sale May Fall Through
Any real estate deal can fall through before both parties reach an agreement. Selling a house for cash removes several obstacles, but it’s still no guarantee. An inspector or appraiser can reveal issues that dissuade a buyer from purchasing your home.
Many Shady “We Buy Houses” Companies
“We Buy Houses” companies sound promising in theory. These companies make a cash offer for your home, and you can move on after the process. However, some of these companies apply shady practices that go well beyond making a low offer.
Some “We Buy Houses” companies will threaten to back out of a deal at the last minute unless you fulfill specific actions. Some companies will ask you to pay for repairs right before closing. Some scammers trick unsuspecting homeowners into signing over control of their homes. Then, the company leases your property to a new tenant. Under this structure, the scammy company generates cash flow while the homeowner is stuck with mortgage payments.
Talk with local real estate agents and call companies before committing to an offer from one of these companies. Some “We Buy Houses” companies can help, but others can leave you in a horrible situation.
When To Consider Selling Your House Fast For Cash
Not everyone should sell their house fast for cash. However, some people need the money and a fresh start more than others. These circumstances make the most sense for selling a home for cash.
Urgent Life Circumstances
Health issues and unemployment substantially change your income and expenses. Downsizing can help you avoid diving deeper into debt and possibly filing for bankruptcy. A cash offer gets you out of your home sooner so you can adjust to financial challenges. You can also buy a new house sooner since you won’t get stuck with two mortgages.
The Property Needs Extensive Repairs
Your property may need some work before presenting it to buyers. Repairs can drain your wallet and put you deep in debt, and not every homeowner can afford that investment. Repairs will also prolong the process and put your plans on hold. You can sell your home as-is and accept a cash offer to avoid repair costs.
Avoid Lengthy House Showing Process
House showings take considerable time. You must first promote the showing and get enough interest. Homeowners should also stage their homes to make them more appealing for the actual showing. Most homeowners do several home showings before reaching a deal. A cash offer avoids these hassles.
Remove Financing Contingencies
Some buyers will wait for the bank to approve their loan before closing on a house. Unfortunately, not every mortgage loan gets approved. Some buyers rack up large purchases before closing day, and the bank nixes the loan. Applying for more credit will also hurt a buyer’s chances of receiving a loan.
Not every seller has the patience to endure a financing contingency. Starting all over can put a strain on finances. An all-cash offer removes financing contingencies from the process. These buyers have enough funds to buy your home. You may still encounter contingencies, but removing a few from the deal will help it get closed.
