Nowadays, it is not hard to find “We buy houses for cash” companies. Even larger companies are joining in the business of buying houses for cash and reselling them. The competition has also made it favorable to sellers. With more competition, cash home buyers are also giving better offers to sellers. The question now is if selling house for cash is the right move for you.
Why Is an All-Cash Offer Better When Selling a House?
Who wouldn’t desire an all-cash transaction? While some all sales may seem attractive, there are some disadvantages. Let’s take a look at the pros and cons of selling your house for cash that will help you make the right decision.
Real Estate Pros of Selling A House For Cash
1. Traditional Way
It’s common knowledge that the conventional process of selling a house for cash through an agent and the Multiple Listing Service does not guarantee that you get to sell your house. When your pricing is on point, you should get offers. However, it usually takes months to get the deal you want. Based on the data of Realtor.com, it takes 65 days for a house to get sold, and it differs widely by location.
2. When You are Under Contract
It will take another 30 to 60 days, or even longer, assuming you won’t be encountering any issues. Most escrows do close, but there is a small percentage that can still fail. Considering all these, going the conventional way of selling a house has drawbacks, especially when you need money fast. There are situations where you have to sell your house quickly, such as having a job in another town and moving. If you go with a cash house buyer, then you can get the benefits of selling a house for cash. Companies like Cincinnati Home Buyer can give you an offer within 24 hours. On top of that, you can close in a matter of days, unlike standard sales that can take weeks to sort out everything.
3. No Need to Do Any Repairs
One piece of advice that has always been said when selling your home is to do fix-ups to maximize the value of your house. But when you have no cash on hand or want to sell a house fast, this advice may not be ideal and practical. Cash house buyers will buy your house as it is. Though you still need to disclose any known issues or damages, it will be up to them to do the necessary repairs. If your house needs major repairs and your circumstances make it hard or impossible for you to do them, then the option to sell the house for cash is more favorable.
4. Cash Buyers Won’t Back Out
A buyer changing their mind is often the reason a house sale fails. There might be a previously undetected issue with the house, or they decided not to purchase. Whatever the reason may be, it can be very frustrating and leave you in a difficult situation. Cash home buyers purchase your house to resell them. They would not change their mind about buying your house once they give you an offer.
Cons of Selling Real Estate
1. Less Money
The speed and convenience of selling your house for cash come at the price of lower cost. Expect to get 60 to 80 percent of your home’s market value. This is because these guys are in the business of buying houses to resell them. They will not stay in business for long if they buy your house at its market value and resell it. Also, they are buying your house as it is. If your house needs major repairs, this might be a better deal. Not having to do any repairs and without a real estate agent’s commission can offset the difference in the cost. In the end, you can still get the same or even more money.
2. More Prone to Scams
This should not be a concern if you are dealing with a reputable company like the Cincinnati House Buyer. But if you find out about the company in the mail or an ad, ask for a proof of funds letter from their bank. Also, check if they are accredited.
While a cash offer for your house is likely to be lower than its market value, you cannot overlook how it’s faster and more convenient. You should also consider the costs of repair you will put into it if you go with the traditional way of selling house for cash. Ultimately, it’s up to what you prioritize more and your situation.