Selling a house for cash can save you a ton of time and money on home renovations and repairs. Did you know that the average homeowner spends close to $21,000 preparing their house for the market?
If you want to avoid renovation costs and other fees (like realtors, inspectors, and appraisers), selling to a cash home buyer is the simplest and fastest way to sell a house. However, there a few things you need to know before you sign any contracts.
We’re here to help. Keep reading for five things to know before buying to cash home buyers.
1. Know Your Home’s Value
First, you need to do a little homework to find out the current market value of your home. It’s quite unlikely that its value is the same as when you bought it.
We recommend doing a comparative market analysis of your home. Find out what other homes in your neighborhood have sold for in the last few months. Then, compare those homes to yours based on the home’s features, condition, age, square footage, and property size.
If you want to pay for an appraiser, you can have the home officially evaluated by the bank. This will give you a better idea of what a fair offer looks like.
2. Not All Buyers Will Buy a Home in Any Condition
One of the best benefits of selling a house for cash is that you can typically avoid making repairs and renovations. In other words, cash home buyers will buy your house as-is.
However, not all cash buying companies accept homes that need extensive repairs. Some companies will decline to make you an offer after their inspection. If your house is in particularly rough shape, find a company that guarantees an offer on any home.
3. Once You Accept an Offer, Things Will Move Quickly
It’s important to understand how quickly cash home buyers operate. Most will give you an offer on your house within one or two days of your request.
If you accept their offer, they will buy your house fast. You can expect to close in as little as five to seven days, depending on the buyer. As such, you need to make plans to move out and find temporary lodging and storage.
4. There is Room for Negotiation
Depending on the cash home buyer, there might be some flexibility on the offer they give you. The process of selling a house for cash isn’t an “all or nothing” deal.
If you don’t like their offer, you have three options. You can accept their offer, decline their offer, or attempt to negotiate for a better price.
5. Selling a House for Cash Could Be a Solution to Your Problems
Sometimes, selling a house quickly is the only solution to a difficult problem. For example, if you’re having trouble paying your mortgage, the bank could be threatening to foreclose on your home. Selling it to a cash buyer can help you avoid the headaches involved with house foreclosures.
Alternatively, if you’re going through a divorce, you might need to liquidate your assets, including your house. Selling to a cash buyer can be a quick and easy way to get the house sold.
However, not all situations that call for a quick sale are negative. For instance, if you’re being relocated for work or have inherited a house you don’t want, selling to a cash buyer is a fantastic solution that will put money in your pocket.
Want More Homeownership Advice?
As you can see, there are plenty of benefits of selling a house for cash. Just make sure you consider all of the factors listed above before making your decision.
And if you’re looking for more helpful tips and advice, we have more to offer. Our blog was created to be a reliable source of information for readers like you. Take a look at some of our other articles before you go.