The Ins and Outs of Selling to a Cash Home Buyer
If you’re interested in selling your home quickly and without the headaches that accompany going through a traditional real estate agent, then you should consider selling to a private cash home buyer. This guide will tell you everything you need to know about selling your home to a private cash home buyer.
What is a Private Cash House Buyer?
When you hear the term "cash offer", “cash home buyers” or our personal favourite “We Buy Homes!” you probably imagine a potential buyer arriving at the negotiation table with a briefcase full of cash packaged in rubber bands and stacked in thick piles. (bonus points if he has a Cuban cigar in his mouth). While this would make for a great scene in a movie, the reality of selling a house without a realtor can actually make your life easier and less time consuming, plus no commissions!
First-time homebuyers buying a home for cash, either as a primary residence or second home, are more likely to plan to live in the property. Given that this type of buyer puts significant money into the home, they are likely to want a property that needs significant modernization or major repairs. This means that you can offer fewer unforeseen opportunities such as you don't need an appraisal. The lack of credit reduces many of the unknowns you face as a seller, and the good news is that you can skip the staging and open house appointments.
How it Works When Selling to a Cash House Buyer
We cannot tell you how many times we have gotten a phone call from someone who is just trying to get rid of their packrat grandmother’s house that she lived in for over 50 years. The person calling is usually saying that they just inherited the home and they don’t know what to do with it. This is the ideal situation to illustrate “as is”.
THE PROCESS IS EASY!
1) A private cash house buyer representative will walk through the home to gage a proper offer
2) Offer is presented and if you are satisfied with the offer both parties sign paperwork which then goes to the lawyers office to finalize a closing date
3) Keys and money are exchanged through the lawyers office on the closing date.
Many sellers who accept a cash offer are in a situation where they want to sell, but they tend to accept a lower offer to pay for the move. Buyers know this and tend to make lower offers than they would otherwise. In a competitive market, sellers benefit from accepting an offer for a home rather than a mortgage.
If you don't use a broker, it's up to you to set the price of your home to discourage cash buyers and investors from stepping in for less. When selling, there is always scope to negotiate with the buyer and his agent (broker (s)) about the required price.
How to Sell your Home to a Cash House Buyer
Many cash buyers are prepared to repair and resell such properties, so that you may be able to conclude a short-term letting for the remaining home, and this could prove appropriate if you can provide the new owner with a source of income while he repairs other projects.
Some cash buyers are paying cash to refinance to take advantage of lower interest rates. In this way, the paying buyer may want to add contingencies such as valuations and inspections that do not justify a larger discount, thereby negating the purpose of a cash sale.
The Advantages of Selling to a Cash House Buyer
If you are selling your home with cash to a buyer, considering a cash offer for a home can help you leave the closet a bit richer than when you sat down. The beauty of being a cash buyer is that you don't have to give up a large chunk of the sale price to your estate agent.
A cash offer for a home occurs when a buyer offers cash to the seller for the whole cost of the home without having to be financed by a mortgage lender or another institution.
Disadvantages of Selling to a Cash House Buyer
Cashless homebuyers can buy homes without a mortgage or other financial assistance. Most home buyers can afford this type of financing to buy a home in the form of a mortgage.
"According to the National Association of Realtors, 23% of home buyers financed their purchases in March 2021, including property investors."
Regardless of the list price, in today's strong seller market you may find that you receive at least one cash offer. If you want to sell your house and don't want to worry about an eventuality, a cash offer may be ideal for you.
Websites, mailers and handwritten signs proclaim that they offer an instant cash offer for your home, allowing you to sell your home for cash in just a few days and avoid much of the cost and hassle of a traditional house sale. This saves you money on the property you are trying to sell. If the process of selling a home for cash sounds like something you want to explore, our simple selling tools are a solid starting point.
Considerations when Selling your Home to Cash House Buyer
Go ahead and find your own cash offer and we will find you a direct buyer who has already purchased the property on your terms and at your price and has been confirmed as ready to buy.
The cash house buyers can choose to sign or accept, and a lawyer will review the terms and conditions to see what will be what and to calculate any closing costs.
As we have seen, cash-sale offers benefit from faster completion, lower costs and less stress. If you're ready to explore the benefits of accepting a cash offer for a home, contact DCI Properties today to learn more on private home sales.