Imagine how much simpler it would be to sell your home for cash rather than dealing with the hassle of banks, lenders, and mortgage companies. How much more profitable would the sale be if you could get it done quickly and avoid the hang-ups that the loan process often presents?
While the traditional real estate path might feel comfortable because it’s familiar, it has some serious downsides. If you’re thinking, “Why should I sell my house for cash?” or “What are the main benefits in looking for such a sale?”, here are five great reasons to consider selling your house for cash.
Some people may think that selling their house for cash is next to impossible. But according to this article, even though cash purchases may be declining a little, they still account for 1/3 of all home purchases. And if you’re in Florida, the article points out that you have a great chance at selling your home for cash because “the top 5 areas for cash sales are all in Florida.”
That then presents a question. Why should I sell my house for cash? What are the main benefits in looking for such a sale? The truth is that there are 5 main reasons why you may strongly want to consider selling your house for cash. Let’s look at each one of them together.
1. Fewer Sales Fall Apart at the Table
It can be extremely frustrating to negotiate a home sale. You may end up going back-and-forth with the buyer multiple times until you both agree on a price. This, of course, happens after showing the home and answering countless questions from the potential buyers. In other words, by this point, you’ve already worked a lot to close the deal.
Then, weeks into the process, the person may fail to qualify for a loan. Or maybe at the last minute, they realize their credit isn’t good enough for the purchase of the home.
This puts you in a serious bind. You’re starting over from scratch, having wasted valuable time and extended your home’s DOM (days on the market) number, which could negatively impact your ultimate sale price.
Cash deals avoid this problem altogether. Credit and loan qualifications are irrelevant when cash is on the table. Therefore, selling your house for cash is a great way to avoid having the deal fall apart at the last minute due to something completely out of your control.
2. Selling for Cash Is More Expedient
It can take anywhere from four to seven weeks for a deal to close when financing is involved, and that’s if it’s a fast close! Sometimes, the process can take even longer. On the other hand, a cash deal can conclude in just four to seven days.
With a non-cash sale, you’ve got multiple hoops to jump through before the financing company provides funding to the buyer. Inspections and appraisals have to be scheduled and completed. There can be seemingly endless back-and-forth to get all the details in order.
A huge advantage of selling for cash is that doing so helps you avoid these lengthy processes, as well as the financial matters of credit checking, underwriting, etc. It allows for a smooth, quick transaction of house for cash. Done.
3. It’s Easier to Sell “As Is”
When a buyer needs financing to purchase a home, the bank wants to make sure the house is actually worth the money they’re going to put up for the loan. That way, they ensure they can sell the home and recoup their money if they have to foreclose on the property.
To do this, they order a formal appraisal, which not only wastes time but also costs money. When you sell for cash, however, the buyer assesses the house and pays what they want to pay, regardless of what an appraiser says.
Without inspections and appraisals, there is no need for the seller to make repairs to the home before a sale if they don’t want to. It becomes very much a “what you see is what you get” situation for the buyer. Simply put, you avoid extra hassles when you sell for cash that you will have to deal with if you sell to someone who needs financing.
4. No Need for Closing Costs
One of the biggest downsides of the traditional real estate market is all the money you lose to fees and commissions. If your profit margin on the sale was already low, paying others out of that pot can leave you feeling disgruntled and disappointed.
When you sell for cash, however, you drastically reduce the added costs. The transaction is simple and clean, and it doesn’t have to involve multiple entities requiring a million points of qualification before the sale can take place. It’s a cash-for-goods exchange, which is by its nature much more simple.
5. You Can Stay in the Home for Up to 12 Months
When you sell for cash to a company like The Buy Guys, you have the ability to stay in the home for up to 12 months. You can take your time, if you want, and don’t have to transition out of the house too quickly. You can even stay in the house after closing. If you’re selling fast, you can get cash quickly without moving immediately. You choose when you move out of your house. Which other “We Buy Houses” company does that?
Therefore, you may really want to consider selling your house for cash and avoid the lending process. To do so, however, you will want to consult a professional. There are companies involved in buying homes for cash that can help you make the process flow smoothly rather than having to figure it out on your own between you and the buyer. The key, however, is to understand the benefits involved. When you sell for cash, you avoid the risk of the deal falling through at the last minute. You also get the benefit of closing in about 7 days rather than in 7 weeks. Additionally, you avoid the added hassles of appraisal and other processes that eat up you time in money. Therefore, one of the best ways to sell a house is definitely to sell it for cash.