Many are opting to go for cash house buyers when selling their houses. So what makes a cash offer on house appealing and why should you consider it when selling a house?
Why Are Cash Offers Better?
Here are the 7 advantages of a cash offer on a house:
- No Appraisal
- No Tons of Paperwork
- Cash Offer Closing Time
- Save on Commission Fees
- Less Risky
- Less Stress
- Save Money on Repairs
But what makes an all-cash offer superior? Continue reading to learn about the benefits of accepting a cash offer on house.
Most conventional sales involve a mortgage lender so an appraisal would be necessary to reduce the financial risk in case of foreclosure. If an appraisal comes low, it may mean the mortgage lender will not be proceeding to finance the home sale which is the main cause of most sales falling through.
With a cash sale, no appraisal is needed since a mortgage lender is out of the equation, meaning doing away with a huge obstacle from the selling process.
No Tons of Paperwork
Home selling involves piles of paperwork. There are lots of forms that need to be read, initial, and signed, plus you should avoid even little mistakes because it can be costly. But with a legitimate house buyer who offers cash, they’ll also handle the closing and paperwork process for you.
Cash Offer Closing Time
Selling your house to one of the ‘we buy a house’ companies takes less time to close than traditional sales. As mentioned earlier, there is no mortgage lender involved so it takes off a huge chunk of time because no mortgage is needed to be underwritten. Selling to a cash house buyer allows you to close in as fast as 10 days.
Save on Commission Fees
Usually, a real estate agent fee takes up to 6 percent of your home’s sale price. But when selling your house for cash you get to keep all the cash. But make sure you check there are no hidden fees since some cash buyers may charge one.
The fact that there is no mortgage lender involved, there is also less risk involved. Most home sales fall through due to financing concerns, but with a cash buyer, this is not the case. Just be sure to deal with a reputable cash house buyer.
Cash buyers will buy your house as-is which means you do not have to worry about repairs, upgrades, and staging. Moreover, you won’t have to worry about the sale falling through because the buyer backed out or financing wasn’t approved.
Save Money on Repairs
In traditional home sales, the home inspection will indicate what repairs should be done. You will either pay to make the necessary repairs or lower the home’s asking price.
All in all, many home sellers go for all cash offers mainly because of the faster process with fewer uncertainties and obstacles. The higher offer in a conventional sale may sound appealing but the convenience and the faster closing cost make many sellers prefer a cash offer on houses. It all depends on your situation and what works best for you. But if your house is in need of a lot of repairs or you need to sell it quickly, then there is no doubt that it is best to go for a cash house buyer.