If you’re thinking of selling your house, then you’re doing it at the right time. Believe it or not, homes were sold at the fastest pace in history in 2021, and that trend is expected to continue into 2022.
However, selling a house comes with a lot of moving parts, responsibilities, and expenses. Luckily, with cash sales, you can eliminate a lot of that hassle.
So, what is a cash sale, and what are the benefits of selling a house for cash? Let’s talk about that.
What Is a Cash Offer On a House?
Cash offers don’t necessarily mean that somebody shows up at your door with a pile of cash, you hand them the deed, and the deal is done. Instead, it simply means that the buyer won’t be using a mortgage loan to finance their purchase.
Cash sales aren’t as common as traditional sales, but they do make up for a significant portion, even up to 24 percent of US home sales. There are many potential reasons why a buyer would choose to pay without financing.
For example, the buyer could be an individual who sold their last home, an investor who wants to rent out or flip the property, or a company looking to resell the home. Some homes are even more likely than others to be sold for cash.
Homes that are up for foreclosure, owners with recent life changes, inherited homes, and homes in need of significant repair or investment are more likely to be sold for cash. However, that’s not always the case. Many sellers may prefer to sell their home, regardless of its current standing.
Regardless of the buyer or seller’s reasoning, cash sales can offer a lot of benefits that a traditional home sale can’t offer. Here are some of the key benefits of cash selling.
1. Less Hassle
Several items on this list will come down to the fact that selling a house for cash is simply easier and less stressful. Studies show that moving is more stressful than divorce, which is unsurprising when you consider the thousands of phone calls, logistical plans, expenses, and issues that arise during the process.
All of that is not to mention cleaning, staging, repairing, and dealing with an agent. Selling a home for cash is quicker, doesn’t require hourly phone calls from a realtor, and is all-around easier and less stressful to manage.
Also, one of the most time-consuming parts of your job will be to clean. Windows, walls, floors, and so much more need to be cleaned before a showing if you want to sell the house traditionally. With a cash sale, the buyer will take care of that for you!
2. No Appraisal
On that note, selling a house for cash won’t require a home appraisal. If the buyer is willing to make a cash offer, then you won’t have to worry about getting the house appraised unless you want to. This eliminates the need for a significant cost often associated with selling a house.
Also, this means you’ll get to avoid the inspection process, which tells you everything wrong with your house. This could save you a lot of money on major repairs.
3. Less Risk
A buyer who has the cash on hand is less likely to have any obstacles to clear. They won’t have to worry about being rejected by a bank or anything prior to the purchase, avoiding any unwanted surprises on closing day.
Essentially, a cash buyer is less likely to jerk you around. Once you find a home buyer offering cash and you’re set to close the house at a certain time, they’ve likely made up their minds.
However, when you’re selling a house the traditional way, they’re more likely to change their mind at the last minute, have issues with their mortgage loan, or be interrupted for one reason or another. It makes sense to limit your risk by accepting a reasonable cash offer.
You’ll also reduce your risk of excessive wait times, not just failed sales. Selling a house the traditional way could take months, and if you need to make a down payment on your new home, then it just isn’t feasible to wait that long.
4. Faster Closing
Going back to the “less hassle” feature, fewer moving parts mean that you’ll have a much faster closing sale. A cash offer could lead to closing within a week or two, which is a lot faster than selling the traditional way, which often takes months!
With the number of meetings, showings, and other obligations you’ll have while trying to sell the traditional way, you’ll be booked for months in advance, never knowing if any of the meetings will go anywhere. When you accept a cash offer, you’re essentially guaranteed that money.
5. Saving Money on Expenses
Let’s say you’re offered cash for $10,000 less than your asking price. In that case, you’ve made more money than you would have made by selling your house the traditional way, even if you were paid in full.
A cash home buyer comes with so many fewer expenses. Eliminating a realtor fee could save you 5% of the sale, which is $20,000 on a $400,000 home. That’s not to mention inspection fees, appraisals, staging fees, and so much more.
Also, selling your home as-is means that you won’t have to spend unnecessary money on repairs, which add up quickly. Labor and material costs are at record highs around the US, so save yourself some trouble!
6. Skip the Formalities
Marketing, staging, showing, and appointment bookings will take so much time out of your day, even with a realtor. It’s like having an extra job. Thankfully, you can skip the entire process by accepting a cash offer.
Also, are you comfortable having a bunch of strangers walking through your home? Well, with showings and open houses, people will be coming and going as days go by, which opens doors for theft and other potential issues, especially during the pandemic.
7. Limit Negotiations
Selling a home the traditional way comes with a lot of negotiations that won’t always go your way. This could lead you to settle for a much lower price out of fear that you won’t find another buyer.
Instead, finding a ready buyer with a cash offer will allow for a quick sale without the hassle. If you’re not a skilled negotiator, then this could be a life-saver.
8. Less Paperwork
We mentioned phone calls, appraisals, and a lot of the other annoyances that often come with selling a home. Well, if there’s one thing worse than those, it’s paperwork. When selling for cash, you’ll limit the amount of paperwork dramatically.
Selling a House for Cash Guide
Selling your home for cash has never been easier, so let’s talk about how to get started. You can get started by checking out some cash home buyers online and get an offer almost immediately!
Some companies or buyers will want to see the property first and appraise it themselves. This will come at no cost to you, as you will only need to arrange a date for viewing. However, some companies will return an offer even faster than that.
Once you have an offer, crunch the numbers and see if it works out in your favor. If you have an estimate from a realtor or if you’ve already had the home appraised, then this will be even easier.
Take the total number and subtract the realtor commission fee, inspection costs, estimated repair costs, cleaning costs, appraisal costs, marketing/staging, and anything else. Then, factor in the number of hours you would have to put in to see if it’s worth it.
From there, talk it over with your family and see if it’s the right decision for you and your family’s needs. At the very least, it won’t hurt to see an offer and compare it to an estimate. Keep in mind, the money from the sale will all be yours, meaning you won’t have to share it with an agent!
Get Your Money When You Want It
Now that you know the benefits of selling a house for cash, why wait longer for your money? Save yourself the trouble of months of waiting and sell your house for cash today! You’d be surprised how quickly the sale can go through, allowing you to get on with your life.
Stay up to date with our latest real estate news and feel free to contact us with any questions or for help selling your home!