Are you part of the 1 in 5 American homeowners planning to sell their home in the next year? If so, it is a good idea to get prepared for the process. One of the best things you can do is have a better understanding of your selling options.
For example, you might be wondering:
- Should I work with a real estate agent or sell my home on my own?
- How quickly can I expect my home to sell?
- Should I accept a cash offer for my house?
The reality is there is no wrong way to sell a home; it is about figuring out what makes the most sense for you. And, we are here to help you do just that when you are a new home buyer or house seller.
In this guide, read on to learn more about the most important things to know when accepting cash for your house so you can decide whether it’s the right choice for you.
All-Cash Offers Are More Common Than You Think
If you find yourself thinking, “who buys houses for cash?” the answer might surprise you. While not as popular as “traditional” home sales, all-cash offers are starting to become more common, especially as more people are looking to get into the world of real estate investing.
Since real estate investors often get discounts on title company fees and home repairs, they generally have more cash flow to present you with an all-cash offer. Selling your house for cash not only benefits you, but it benefits the investors as well because they can close on the sale faster than they would with a traditional home purchase that requires a mortgage.
There Are Different Types of Cash Buyers
While we mentioned real estate investors above, the truth is that they are just one type of cash buyer. If you are worried that an all-cash offer on your home may not be legitimate, have no fear. There are plenty of legitimate cash buyers in the market for homes like yours.
So, what other types of buyers might you get a cash offer from?
Online Real Estate Companies
Some real estate tech companies make all-cash offers on houses they believe they can turn into a profit. These companies often use advanced technology to determine a fair offer for your home that will benefit you both.
You can hardly turn on a home-focused TV channel these days without seeing a house-flipping show. Buying homes, renovating them, and then putting them back on the market is becoming more popular than ever before, even outside of the TV world.
If you have an older home with a lot of potential, professional house flippers may reach out to you with a cash offer so they can turn it for a profit.
Wealthy retirees are another common type of cash buyer, as they may be searching for a second home to enjoy in their retirement years. However, keep in mind that since retirees are more likely to be first-time cash buyers instead of seasoned professionals, they may require more contingencies than other types of cash buyers.
You May Get a Lower Offer
Before deciding whether to accept an all-cash offer for your home, it is helpful to think about your priorities when selling your home. If you are looking to get the highest possible amount for the sale, then working with a cash buyer may not be the best option.
Because all-cash offers are so convenient, the potential downside is that you may have to accept a little less money to come to an agreement with the buyer. However, that is not necessarily a bad thing! If your priority when selling your home is to make the process as easy and quick as possible, then working with a cash buyer is one of the best things you can do.
If speed and ease are more important to you than a little bit more money, then you can’t go wrong with accepting an all-cash offer.
It’s Ideal if You Need to Sell Fast
Oftentimes, when you decide to sell your home, it is because you’re experiencing a significant life change. For example, you might have just finalized your divorce and you want to start the next phase of your life. Or, maybe you have accepted a job offer in a new location and you need to move so you can start your new career.
In those cases, time is of the essence and you can’t afford to have your house sit on the market for months. This is when accepting a cash offer is ideal.
All-cash sales are much faster than traditional sales for the following reasons:
- You don’t have to wait for the mortgage underwriting process
- There is no need for an appraisal
- The closing process is faster because you don’t have to wait on the mortgage approval process
- You don’t have to spend time marketing and showing your home
If you need your sell your home as fast as possible, working with a cash buyer is the way to go.
It Can Reduce the Stress of Selling Your Home
The final thing to consider when deciding if you should accept a cash offer is stress. Selling a home can take a toll on even the calmest person. That is because the traditional selling process includes finding a real estate agent, cleaning and staging your home, making expensive repairs, and dealing with showings.
When you sell your house fast for cash, you won’t have to worry about any of that. Since most cash buyers buy homes as-is, you can leave your home in its current state, without having to take on any extra work.
Should I Accept a Cash Offer for My House?
After reading through this guide to the most important things to know about selling your home for cash, you should have a better idea of how to answer the question, “Is accepting a cash offer for my house the right choice for me?” Weigh your options using this article as a guide and get the best possible deal for your home!
Interested in reading more real estate content before selling your home? Check out our other home sale articles in our Real Estate section before you go.