You’ve accumulated a substantial amount of cash in the bank, and you want to use it to purchase a home. Maybe you’ve sold your current home and are looking to downsize to a smaller property, or you simply want a fast and convenient homebuying process. Whatever the reason, selling your home for cash could be the right move for you.
Speed, Convenience and Certainty
In addition to being able to skip the appraisal, many cash buyers can close within two weeks, which is significantly less time-consuming than traditional mortgages. And with the average closing time for a mortgage loan exceeding 50 days, that can be a huge plus in the current market, says Christine Marchesiello, a top real estate agent in Saratoga Springs, New York.
No Appraisal: Unlike mortgages, which require an appraisal, cash buyers can avoid this requirement altogether by providing their own proof of funds for the home they’re interested in. That makes them especially appealing in a seller’s market, when competition can make an appraisal one of the biggest factors that determines whether or not a deal gets closed. Also read https://www.investorhomebuyers.com/sell-my-house-fast-wylie-tx/
A lot of people also enjoy the convenience that comes with being able to close without having to worry about financing. While mortgage lenders will generally cover the closing costs, cash buyers will typically be responsible for paying their own transfer taxes, escrow fees and other home-buying costs.
Some homeowners sell their homes to companies that buy them for cash, which is a popular option with house-flipping businesses and those who are in financial distress or need to sell quickly. The company might take the home “as is,” allowing them to save money on repairs and renovations.
Often, these companies are national companies with local franchises that specialize in buying homes for cash. Some of the biggest names in this business include HomeVestors (also known as We Buy Ugly Houses) and Leave the Keys Homebuyers.
They are usually family-owned businesses, and they have an experienced team of home inspectors, painters, cleaners, and more who can give you a fair price for your house and help you through the entire process.
The best cash buyers can help you get the most for your home and provide you with a quick closing, but they also come with some drawbacks. The most obvious is that you’re likely to receive a lower offer than if you had sold your home traditionally, because they are willing to pay less for your home in order to close as quickly as possible.
You’ll also have to pay additional costs if you choose to buy a home with cash, like transfer taxes, escrow fees and homeowner’s insurance. These expenses can sometimes be rolled into the home-buying contract, but they aren’t necessarily included in your cash offer and can add up.
If you’re unsure about whether or not you should go with a cash buyer, talk to a real estate lawyer to learn more. This professional can walk you through the entire process, and give you advice on which offers are likely to be accepted and which ones might fall through.