Selling a home is a stressful experience depending on your circumstances. The period of time is also exciting as you possibly turn a huge profit on your home investment. Unknown aspects of the home sale provide some uneasiness. An experienced real estate agent can help smooth out and explain the process. The commission of an agent is up to 6 percent when both the seller’s and buyer’s agents receive payment. Selling your home for cash saves on the commission that is a substantial amount of money depending on your home’s value.
Cash sales are more common than most people think. Around 24 percent of condominiums and single-family homes are bought by cash buyers in the US. Florida is a great example of a state that has so many cash buyers. Buyers could do this, as property values are lower when coming from states like California or New Jersey. Below are things that you need to know about selling your home for cash.
What Type of Home Usually Gets a Cash Offer?
Home loans can usually be renegotiated or refinanced unless these options are exhausted. A home at risk of foreclosure leads to the homeowner losing the equity they’ve invested in the home. A cash sale helps pay off the remainder of the mortgage and allows the owner to see some form of return on investment (ROI).
Sellers possibly had recent life events that lead to them selling their homes. Divorces are perfect examples as both parties might want to liquidate the home as quickly as possible. A quick sale could be needed due to the homeowner moving immediately for personal or professional reasons.
Major repairs add up over the course of time and cost immense amounts of life. Selling for cash allows you to bypass handling these repairs in some cases. Selling in a traditional manner with a laundry list of major repairs that are needed can prove impossible. Fix-uppers are perfect candidate for cash buyers.
Homes in areas where people frequently retire receive several cash offers. Retirees would rather pay for properties in cash rather than deal with the financing/mortgage process. Areas that are hot for investors are also huge advantages.
Tenants might have stopped paying rent and this leads to you falling behind on the mortgage. Fines pile up due to HOA or city ordinance violations of the tenants. Coveway Properties, which assists in connecting cash homebuyers and sellers says, “If your tenants stopped paying rent, stopped taking care of the property or are not following the terms of the lease agreement, it turns into a nightmare fast.”
Advantages of Selling Your Home for Cash
A cash buyer eliminates the need for an appraisal. Lenders require these to reduce the risks of the buyers. Home sales not being approved by lenders are often the results of appraisals being far lower than the lenders anticipated.
The closing speed for selling your home for cash is very attractive to sellers that want the process over quickly. The underwriting process of a mortgage is the lengthiest part of a home sale. The process can take a few months that possibly leads to a buyer having a major life change. Even if a buyer loses a job, a lender might allow the deal to fall through. The less time there is for a deal to fall through, the less of a chance that it actually does.
Reducing stress is probably the most attractive part of a cash sale. Waiting for months for a deal that might not go through is daunting. You still have to pay taxes, utilities, and other expenses associated with the home. A few sales falling through lead to thousands of dollars in addition to cash output for a property that you only want to sell.
The lack of inspection in a cash sale is perfect if you know there are some glaring issues with your home. You won’t have to pay for repairs to be done, as this really drains a family’s cash flow.
Selling your home for cash is possibly an option that you never considered in the past. A cash offer allows you to start life in a new location or to start a new chapter of your life. Don’t wait for months for an offer that might not go through, as a cash sale is a very viable option.
