Selling a home for cash is becoming more and more popular in the real estate industry. Twenty years ago, sellers and buyers used to see cash sales as a cause for suspicion, but in recent years cash sales are becoming more and more popular. Sellers are realizing they can wash their hands of an old home in considerably less time, and buyers are appreciating the ease that a cash sale provides. On average, about 25% of all home sales in the US are made in cash today, and that number often rises depending on the state of the market at any given time.
If you’re new to home selling, you may be wondering why so many people are opting to sell their homes for cash. Here are just eight of the top reasons why many people opt to sell their homes for cash:
#1 You Have More Flexibility
When you’re selling your home to an investor or cash buyer, you have a lot more flexibility when it comes to the terms of the sale. An investor isn’t a family of four looking to settle into your house for the next 20 years, which means they’re willing to meet you on your terms. If you’re selling a property that already has tenants in it, many investors will purchase your property without you having to evict your tenants.
Investors often purchase homes that are near foreclosure or are being sold as a result of divorce, and they’re happy to work with you to get you the best price for your home, with as little hassle as possible. If you have special circumstances, investors and cash buyers have the flexibility to work with you that a traditional home buyer just does not.
#2 You Choose the Closing Date
When you sell your home to a traditional buyer, you don’t have much say in the closing date. Most traditional sales can take months to close, as buyers get their paperwork and funds in order. Traditional buyers can also put contingencies on when you need to be out of the house — sometimes before you’re ready.
What if you need to get out of your home fast? What if you need to sell your home quickly, but need a little bit of time to move out? When you sell to a cash buyer, you choose the closing date, and you set the terms. If you need to have the house sold and closed on in two weeks, a cash buyer can make that happen, something that’s simply impossible with a traditional sale.
#3 Sell Your Home Without the Hassle
One of the most difficult things about a traditional sale is that the buyer has the power to request that the seller make specific repairs, or ask for a lower price for your home if you don’t make the repairs. Most sellers have to make at least a few repairs, put on fresh coats of paint, and some even move out of the house before the home is sold, so realtors can show it to potential buyers. When you sell your home for cash, you don’t need to move out, you don’t have to make repairs, you don’t even have to tidy up — a cash buyer is looking to purchase the home as-is, at your convenience.
#4 Sell a Vacant Home Easily
Most realtors will tell you that there’s nothing harder than selling a vacant home. If you’ve inherited a home from a loved one, or you’re selling a home you only live in a few months out of the year, you can be facing a painful, drawn-out process. Many buyers are wary of houses that have sat vacant for a while; as the seller, you have to worry about burglars and theft, and you’ll also likely have to pay to have parts of the home staged before a realtor will show it.
Selling to a cash buyer alleviates all of these tensions, and gets that vacant home off of your hands quickly. Again, cash buyers won’t mind if the home has been vacant for a while, and they’d be looking to clear the place of furniture and furnishings anyway, so they won’t mind if it’s empty. Pair that with the fact that you don’t have to make any repairs, and a cash sale makes perfect sense when selling a vacant home.
#5 No Fees, No Commissions, No Contingencies
Closing on a home the traditional way costs a lot of money. You can’t just count on the actual number a seller agrees to pay — you also have to pay your agent’s commission, a closing fee, and often the buyers will put in contingencies, like replacing the roof or installing a sump pump, that you’ll have to make good on before the sale is final. All of those fees seriously add up, and they take time too. If you want to sell your home quickly, and with minimal cash out of your pocket, a cash sale might be a better option for you.
#6 No Financing Worries, and No Wait for Loan Approvals or Appraisals
Even after you get an offer from a traditional buyer, you still have to wait for an appraisal, an inspection, and a loan approval. And if anything goes wrong there, and the bank denies your buyers’ request for a loan, you have to start the whole process over again.
When a buyer makes a cash offer, it means they have the cash on hand to give you now. You don’t need to wait for anyone’s approval. At the most, they may have an inspector check out the house, but you won’t be responsible for anything that turns up in the inspection, and it won’t delay the sale. You’ll walk away, cash in hand, in just a week or two.
#7 Sale Security
Beyond just financial concerns, there are a number of reasons a traditional sale can fall through. The buyers might realize they don’t have the money, they might find a different home they like better, or they might just plain change their minds. Unfortunately, that’s their prerogative. However, in a cash sale of your home, the stakes are different. Most investors have different priorities than traditional buyers who would eventually move into the home, so they’re unlikely to spook, and in fact, want to purchase your home regardless of what it looks like or what state it’s in. That means that when you sell to cash buyers you have almost total security that the sale is going to go through.
Ultimately, selling a home for cash gives you the freedom to move on from your home, on your own time and on your own terms. If you’re hoping to get rid of a second home you only use seasonally, or you need to move to another area, a cash sale can get you out quickly. Since there are no third parties involved, you can close quickly, at no additional expense to you, and you can be free from your unwanted home without so much as a second glance. If you’re ready to move on, a cash sale gives you the freedom to do it.
If you need to sell your home for cash contact our team at St. Louis Realty Advisors at 314-270-1601 for your quick, fair cash offer.