If you are planning to list your home for sale soon (or are currently trying to sell your home), you’ve likely noticed the abundance of advertising out there for cash homebuyers. Whether on TV, in print, or on roadside signs, phrases like “We Buy Homes Fast!” are everywhere these days.
Selling your home can be an emotionally and physically taxing task. There are dozens of decisions to be made at every turn regarding how you handle the sale. So how do you know if the cash homebuyer route is right for you?
Selling your house quickly is beneficial for many people. Regardless of your situation, you will find that avoiding the often long and drawn out process of selling a home is a welcome change. However, just like with anything else you may do, there are both pros and cons of the fast selling process.
If you want to be sure that selling your house quickly for cash is the best option for you, then you need to get to know all the information and all the pros and cons, which can be found here.
Advantages of a Quick Home Sale
The most obvious upside of working with a cash homebuyer is that you’ll receive a cash offer for your home. It will be transparent and straightforward.
No waiting to see if the bank will finance your buyer. No need to worry about the possibly harmful effects of an unfairly low appraisal. No going through the hassle of deducting realtor fees and commissions from your final sale price. What you see on the offer sheet is what goes in your pocket!
Ease and Speed
With so few hands in the pot, selling to a cash homebuyer is markedly faster than selling via the traditional real estate route. You won’t have to deal with realtors, banks or lenders, home inspectors, appraisers etc. It’s often just you and the company rep, one-on-one.
Selling via a realtor can take months or even years depending on the condition and location of your home. If you’d prefer to sell your home quickly and be done with it—or you’re in a situation where you absolutely have to sell quickly—cash homebuyers can be a great alternative.
Before selling on the traditional market, most homeowners will need to do some work to their home. Whether it’s updating rooms that might feel dated to buyers (typically bathrooms and/or kitchens) or repairing damaged items (leaks, electrical or plumbing issues, foundation cracks etc.), a realtor will want the home in tip-top shape to maximize your asking price.
Unfortunately, you often won’t see much return on that investment; you may spend thousands of dollars to update a room, only to see your home sell for under market value. Cash homebuyers, however, aren’t worried about those things. They gladly buy your home as is, saving you money on potentially costly repairs.
Some of the other advantages offered by using a quick house sales company to buy your home can be found here:
- Easily and quickly dispose of property you have inherited
- Avoid repossession of the home or other belongings, clear your debt and sort out other financial problems
- Have the ability to move for health or age related issues
- Relocate because of a change of job or to emigrate
- Move for health related problems
- Ability to use a different method to sell your home if you can’t see through traditional means and get around issues that may be making your property “hard to sell”
Disadvantages of a Quick Home Sale
While there are a number of appealing advantages offered by a quick sell for your house, there are also a few disadvantages. Getting to know what these are can help you make an informed decision regarding whether or not this is the right selling process for you.
Selling to a cash homebuying company is unlikely to get you the full market value of your home. Investors are taking a chance by buying your home as is, and the lack of costs to you (such as commissions and fees) will be factored into their offer.
Remember, too, that you’re being handed cash, often days or weeks after your initial contact. That convenience and speed will cost you.
There are a lot of honest, reputable homebuying companies across the United States. Unfortunately, there are also some very shady ones. The industry is rife with abuse, and if you’re not careful, you could easily be taken for a ride.
Just as you would with any business you’re considering patronizing, do your research! Make sure to investigate the company before turning over any of your information and to read reviews. Look for BBB ratings and positive reviews from real customers.
Keep an eye on your credit score and accounts, and be very wary of any company that requires upfront application fees. Cash homebuyers can be lifesavers—especially if you’re in a bind—but remember first and foremost to protect yourself and your property.
Other disadvantages of a quick home sale include:
- There are some companies that buy homes for cash make the agreement to purchase a house and then reduce the price at the last minute
- The fee structures are not always transparent, putting sellers in a financial lurch due to unexpected or hidden costs
- False property valuations made by some companies
- There are some contracts that tie customers in, and prevent them from being able to sell to anyone else who may make a better offer
Is Selling Your House Quick for Cash the Right Option?
There are more than a few things to consider when it comes to selling your house quickly for cash. You have to find out whether or not the company who has made the offer is reputable and whether or not they are going to give you a fair price.
The good news is, there are many legitimate fast cash home buyers who want to help you if you are in a tough situation. When you use their services, you can sell your property and get the cash you need.