Is Selling Your House For Cash A Good Idea?
Putting your home up for sale can evoke mixed emotions. For one, you may be overwhelmed after finding out the tasks that lie ahead in preparing your home to sell faster. Or, you may be excited to transfer to the home of your dreams, in the place that you want.
Whatever your reason may be in offering your property on the market, selling it for cash is always worth looking into. There are numerous benefits in accepting cash payment for your home. And they can prove to be life-savers, depending on your situation. However, there are reasons why you may want to avoid selling your home for cash, too.
If you’re planning to sell your property and want to explore this option, read on because listed below are the reasons why you should and shouldn’t sell your home for cash.
3 Main Reasons Why You Should Sell Your House For Cash
If you’re selling your home for the first time, you’d want to avoid these mistakes. Your decision, however, will be impacted by your current financial and personal situation. That said, it may be better to offer your property to cash buying companies, in some instances. If these situations speak to you, consider taking this route.
- If You Need Cash Quickly
Unlike the traditional way of selling a property, you don’t have to go through multiple stages to close the transaction. This means you don’t need to contact a real estate agent, wait for offers, conduct viewings, negotiate back and forth with interested buyers, and anything else in between. Selling your home for cash allows you to skip paying exorbitant out-of-pocket closing costs.
With cash buyers, you get an offer after an appraisal, and receive the payment a few days after. Transactions with cash buyers can last from a few days or up to two weeks. These companies can speed up the process of getting insurance, appraisals and inspections, and title transfers. Comparatively, traditional home selling processes—which indicate the time a home spends on the market up until the closing date—can last from 55 to 70 days.
If you’re in a rush to get money from your property, consider offering it to cash buyers such as Mill City Homebuyers Minnesota and other companies near you.
If You Have A ‘Problematic’ Home
If you have a house that’s in fairly good condition and don’t need major repairs or carry huge liens, you’re lucky. While not impossible, selling your home with these attached issues can be a huge headache, especially with the complex pre-sale transactions you need to do.
Some properties with attached problems, such as building code violations and illegal conversions, make it particularly challenging to sell. Buyers try to shun away from these types of properties as they’re often disqualified from mortgage, making it difficult for buyers to secure a home loan to pay for your home.
House cash buyers don’t let these challenges discourage them from getting a property, providing you with a great solution to your home issues.
- If You Don’t Have The Resources To Perform Any Repairs
If you can’t pay for the contractor, you’d need to perform do-it-yourself repairs or minor fixes to make your home more attractive. Unfortunately, not everyone can take on this challenge, especially those who are pressed for time or are simply cash-strapped.
House cash buyers can step in and buy your property as is, which means you don’t have to lift a finger or roll up your sleeves for home upgrades. So, whether your home needs plumbing fixes, a new paint job, or a renovation, it doesn’t matter. Simply put, you don’t have to spend for the property you’re planning to part with.
The Downside of Selling Your House for Cash
Despite its advantages, selling your home for cash does have its downside, too. Remember that companies are doing it for business and not for charity.
Expect to have lower offers as compared to the property’s market value. These companies are often in the business of buying and selling, or renting out homes for profit. That said, it’s in their best interest to increase their revenues by buying your home at a price that’s slightly lower than its market worth.
A good rule of thumb is to expect a reduction of 10 to 15% of your property’s actual selling value—although some factors may come into play, including your home’s actual conditions.
If you’re in need of cash fast, and want to have a stress-free home selling process, consider offering your home to cash buyers. Selling your house for cash will also save you from paying out-of-pocket home closing costs and commission fees.
These companies may not offer you the best price in the market, but they’ll take the hassle out of dealing with home selling problems that fall on your shoulders if you were working with a real estate agent.