There are two paths to take when you are deciding to sell your home. Like most people we only see what is in front of us as we find a home we love and want to sell the current house we are in. There are many reasons why people want to or need to sell their home. Before getting into the investment business, I did not know of the option of searching for cash buyers.
In this market, people are not needing to wait too long to sell their home. However, there are some things you need to consider before deciding which path you want to go.
Let’s break down what exactly a “cash buyer” is. A buyer who is ready to purchase your home without a mortgage or long term financing option. Their motivation to buying such property is to renovate or rent your home and do it rather quickly to close the deal. This method has sped up in popularity in many markets. Working with cash buyers can be tricky for sellers, as people are not educated on exactly the steps to take to selling your home to a cash buyer. At StableRock Properties we want to educate and not take advantage of this experience for you. Not every home is a good candidate for a cash buyer. Let’s break down the pros and cons before deciding if you want to go with this option.
Pros
Like any thing you need to find out the good and not good things if you want to consider this route. If you were to list your home. you would have to wait for the buyer and then closing would be anywhere from 30-45 days. With cash buyers, they are motivated to make a deal fast and close very quickly. They do not wait for a bank’s approval to sign the papers and finalize the purchase of the property. When waiting on the bank these days since Covid the closing might get delayed even further out. Therefore, the seller can be frustrated with this process as well as miss out on selling their home. For example, StableRock Properties looks to buy homes for cash from motivated sellers and can close on a property in less time than the traditional 30-45 days it would otherwise take to close. Plus, that 30-45 days doesn’t even start until you find a buyer who commits to buying your home via a contract.
In a traditional selling your home method your buyer would probably want an inspection or appraisal on your home which can delay the closing even further out. As a cash buyer, we will take a house as is and will make any changes necessary to bring up the value of the home after we close. Did you get that part? We will take your home in “as is” condition. You will not have to do ANY work to your house before closing. Doesn’t that sound easy? It really is…
Cash buyers typically offer to pay for the seller’s closing costs and we do not expect a commission as a result of the sale. 6-8% is what sellers can save on their net profits during the transaction of their home. Wait? You are actually saving money in the process of selling your home. Yep! Cash buyers really do want to work with you by offering a win-win solution for all of us.
Let’s not forget the most obvious pro when going with a cash buyer. Do you know which one I am talking about? Oh, yes the bazillion showings you can avoid that you would otherwise have to survive in order to sell it on the market! These days with the changing of times, you know COVID and other variants popping up, you want to keep your home safe from germs and strangers. This pro is huge because that means way less contact with strangers coming in and out of your home.
I promised you we would discuss the cons as well. Let’s dive into that right now.
Cons
Let’s get to the bottom line which is always numbers. As cash buyers, we are looking for deals to be made. That means sellers will likely find that cash buyers tend to offer lower amounts than a traditional home-buyer would be able to. Like the HGTV and other design shows have popped up, everyone wants to make the old into new. Stale into fresh…a lot of people just don’t know what goes into making a rehab successful. Cash buyers enjoy taking your property and renovating it or turning into a rental while updating adding value to your existing neighborhood or market. Please know that sellers should also be aware that they will be negotiating directly with the cash buyer. The middle person such as a real estate agent will not be there to communicate either party's desires. We enjoy working with sellers directly and building a relationship with them along the way.
There you have it! If you have any questions about how the process works in detail. Feel free to check out our sell your home page located at the top of our website.
Like anything, please do your research and check backgrounds, websites, and credibility for the cash buyer you wish to do business with. You are in excellent hands and will get to sell your current home and move on to whatever big dreams or goals you want to accomplish.
As always, God Bless!
- Lauren