If you’re considering selling your home to cash buyers, then you’re making a smart decision.
According to Realtors Confidence Index Survey Report, cash buyers acquired 23 percent homes sold to in January 2017.
Given that more investors are opting to buy homes with cash, this might be a smart plan you should adopt.
Homes are relatively easy to sell for cash, and you can close deals quickly. Let’s explore this more in-depth.
Read on for the seven benefits of selling your home to cash buyers.
Why You Should Sell Your Home to Cash Buyers
You probably have some personal reasons for selling your home for cash. That’s awesome. In case your reasons aren’t strong enough, you’d want to look at any of the seven benefits outlined below.
#1. You Close the Sale Quickly
The process of closing a sale is tedious, taking four to seven weeks. During this period, the buyer would try to qualify for a loan. There is also the credit score to worry about. In the end, the sale may fall through, and you’d have to start again from scratch.
You have to put your home on the market and wait for yet another buyer. That could take months. Selling your home to cash buyers will only take a few days.
We can summarize the advantages of selling your home to cash buyers in three points.
- No mortgage companies
- No inspectors
- No loan problems
You can close the sale within three to seven days. And even if the deal falls through, you still have plenty of time to put it back on the market.
#2. Fewer Failed Sales
In the United States, 3.9 percent of home sales failed in 2016. That’s an increase from 2.1 percent in 2015. The fact that potential buyers have to apply for a loan does nothing to guarantee sales. They spend weeks getting their credit checked and asking for a loan.
Just when you think the nightmare is over, another complication pops up. You run into problems like;
- Buyers getting cold feet
- Title complications
- Mistaken ability to qualify for a loan
Regardless of the reason, the buyer is left at a disadvantage. For you, the process begins again.
With cash sale, there is no complication of loans or mortgage. And without that complexity, the transaction is easy. You neither have to worry about appraisals nor credit problems. It’s a simple exchange.
#3. Your Home Becomes Easier to Sell
There is a major issue with selling to someone who needs a loan. The problem comes in the form of an appraisal.
Not only will it cost you time, but you’ll also spend some money as well. Whether your house is selling too high or needs repairs, it’ll cost you. In the end, you would have wasted time fixing your house and setting a new price.
Selling to cash buyers eliminates the need for an appraisal. Such investor has to buy your home as it is, defect and all. This implies that you get to keep your appraisal fee and no time-consuming repairs. What an easy way to sell your home.
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#4. It is Very Convenient
Selling to cash buyers is convenient. The transaction is straightforward and simple, a home for cash. It’s a stress-free way of selling your home. You won’t have to bother with updates or staging.
There would be no need even to mop the floor. You get to enjoy your time while selling your house. Nothing emphasizes the convenience of cash sales more than the timing of the money.
The fact that closing takes a few days means you receive payment when you need it.
#5. Everyone is Doing It
Exchanging cash for a house is fast becoming a trend. You can attribute this pattern to two things.
- Negotiating with cash on the table gives buyers an advantage.
- Sellers sell at their comfort.
Another reason it’s trending is the value enjoyed by both buyer and sellers. Real estate professionals whose area of interest is cash sales charge less for their services. They forego a lot of fees which, when added up, is a lot of money.
Cash sales of homes have always represented 25 percent of the market. In 2014, it increased by almost half to 40 percent. What’s more, this figure is rising every day. You can be part of it.
#6. You Get Your Life Back
This applies when you inherit a rental property that you need to sell. In this case, you are not selling for cash. You want to sell the property because it reminds you of the deceased. Maybe because you don’t want to manage a rental property, the stress would be too much for you.
Waiting through the months it takes to check credits, inspection, and appraisal can be frustrating. Knowing that the sale can fall through at any time is even more frightening. A quick deal is all you need to get your life back. Selling to cash buyers is the way out.
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#7. You are a Senior Citizen
You have more reason to make a cash sale if you are a senior. Most senior citizens want to get out of the responsibility of maintaining a home. It requires time effort and money. The fastest way of doing this is through a cash sale. You get the added advantage of selling at your convenience.
Senior citizens sometimes have to sell their homes to pay for an urgent medical care. Selling to buyers with cash makes it a breeze. And remember, it’s stress-free.
Wrapping Things Up
The time value of money is vital in any business you conduct. It means that money that is available at present is worth more than the same amount in the future. This value placed on cash is due to its immediate earning power. You can take advantage of this business principle by selling your home to cash buyers.
Apart from receiving your money on time, you have the added advantage of a stress-free transaction. There are benefits of paying in cash for buyers as well. These include;
- A sense of security
- Available equity in case of emergency
- No Mortgage loans
- No restriction on title transfer