You’ve probably seen ads for “Cash for Homes Company” or “We Buy Homes for Cash” claiming fast closing time. If you need or want to sell your home fast, it’s one of the best options you should consider, especially if your home needs work. But, like when buying a house, you should make sure to think things through before proceeding.
We’ll explain all the stuff you need to know about cash for houses companies and the advantages and disadvantages of accepting cash offers for your home.
What is the ‘Cash for Homes’ Buyers? Are They Legit?
As the term implies, ‘cash for homes’ buyers buy houses and pay them in cash. No lenders involved. Sixteen percent of all home sales are cash transactions.
And yes, the concept as a whole is legitimate. But like any other kind of business, you need to do your due diligence because there are still bad apples who may either lowball you or completely scam you.
What Are the Steps Involved When You Sell a House to a Cash Home Buyer?
Here are some things that you can expect in the process of selling a house to a cash buyer:
1. Contact the Quick Cash for House in Cincinnati
You can contact them by phone or visit their website to let them know you are interested in selling your home to them. They will ask you to provide information about your home, including age, current condition, size, and configuration. You may want to contact and request a ballpark offer from at least 4 different cash home buyers so you can compare which gives the best offer and the best answers to your questions.
2. Complete the Home Inspection
Most cash homes companies can provide a ballpark offer within 24 hours, but they also need to conduct a home inspection before giving you the final offer. They will buy your house as-is, so you don’t have to worry about doing repairs or even cleaning it before the sale.
3. Close the Sale
Since there are no lenders involved, selling your house to a ‘We Buy Homes for Cash’ company is a lot quicker. Closing can be done as fast as 10 days.
Why Selling Your House to a ‘Cash for Homes’ Near Me Better than a Traditional Home Sale
Keep in mind that if you haven’t fully paid your home, a good chunk of the home sale proceeds will go to repaying the mortgage. Nonetheless, there are many reasons why a cash offer might be better for you. Here they are:
1. Lower Chance of Sale Falling Through
Most cash sales close as expected. Since there is no lender involved, you can rule out the possibility of a deal falling through because of a lender or bank not approving the buyer’s mortgage application.
2. Significantly Faster Process
Even if the home buyer is pre-approved, an actual mortgage approval is still needed, then there’s underwriting which can take 45 to 60 days. On the other hand, you can close a cash transaction in 10 days.
3. Fewer Contingencies and Less Stress
It’s unlikely that cash buyers request an appraisal or other contingencies. Because the review is out of the picture, you don’t have to worry about the assessment affecting how much you will get out of cash homes for sale.
4. Simpler Process
Cash buyers usually take care of most things involved in selling a house, such as paperwork. Also, not having a lender involved means there’s much less to review and sign off on to close the deal.
Factors to Consider When Accepting a Cash Offer
Of course, there are also times when you are better off with a financial offer. Here are some factors you have to consider before accepting a cash offer:
1. Consider Your Timeline
If you need to sell homes for cash, a faster closing with a cash buyer is better. But if you’re not in a hurry to sell, you would want a financed offer where you can get more proceeds than a cash offer.
2. How Much Money Are You Ready to Give up for a Faster Home Sale?
On average, cash offers are 12 percent lower than financed offers. Is it worth giving up that percent for a faster home sale and the convenience of a cash offer process?
3. The Condition of Your Home
If your home has major issues and you can’t afford to fix them, you might want to consider a cash offer.
4. How Legit the Buyer You are Dealing With
You have to make sure you are dealing with a legitimate home buyer. Check their background. You also want to look at their experience and reputation. You don’t want to deal with someone too pushy and telling you to accept the offer now, for it has an expiration.
So, Should You Accept an Offer from a ‘Cash for Houses’?
The answer depends on your situation. Ultimately, it depends on what values most to you. For example, if time issues are more than money, you are better off with a cash offer. But if you can manage to wait then, you can get your house listed and probably have multiple suggestions, so you’ll have more proceeds from your home sale.
If you can no hard keep up with the payments on your mortgage, you might want to go for a cash offer to avoid foreclosure. Despite the lower price of cash offers, keep in mind that you won’t be spending money on closing fees (usually the cash buyer will shoulder it), and your home sale proceeds won’t be deducted with agent commission.
If you own a Cincy home and want to sell it fast, request a ballpark offer here. We are a Cash for Homes company that buys homes as-is, and our process makes it easier and faster for sellers to sell their homes.