Looking to sell a house for cash? Read on for our guide on what it means to sell your home for cash and whether it may be the right choice for you.
What Does It Mean To Sell A House For Cash?
When a home is sold for cash, it means that the buyer paid for the property upfront and without a mortgage. With no complicated financing processes involved, selling a house for cash simplifies the home buying process greatly.
Though the process may be easier, you’re unlikely to make as much money selling for cash as you would if you sold your home traditionally. Cash offers are usually reserved for run-down or damaged properties in need of repairs that are worth significantly less than updated homes.
While you get the luxury of skipping the typical listing process in favor of a fast and convenient sale, you will likely have to get rid of your home at a sizeable discount.
What Is A For-Cash Offer?
While a “for-cash offer” makes it sound like the home buyer is going to show up with a briefcase full of hundred-dollar bills, this is not the way these offers usually play out.
Taking out actual physical money to make a cash offer can be extremely complicated since it’s such a large amount, not to mention it’s not exactly safe to keep so much money physically on your person. When potential buyers make a cash offer, what they’re really offering is money directly from their account via an electronic transfer or cashier’s check.
Why Should You Sell A House For Cash?
The traditional listing process, as well as making necessary updates to a home, can be costly but will ultimately help your home sell for a higher price. Selling for cash, on the other hand, makes selling a less complicated and expensive process but results in less profit on your end.
So, when is the right time to sell for cash, and why should you?
You Want To Avoid The Work Of Selling
When you sell for cash, you can avoid the work of decluttering, cleaning, staging and showing. Sometimes sellers may inherit a property from a deceased relative in another state, making it difficult to be there in person to get the house ready to sell. In situations like these, taking cash offers rather than selling traditionally can make things a lot easier on sellers who don’t have time to travel or stay somewhere to deal with getting a property prepared for sale.
You Want To Sell Fast
Sometimes, there may be situations where you just want to sell a home and move on. In the case of a divorce or sudden job change, it’s unlikely that the seller will have all the time in the world to stick around and worry about selling their home. Since cash offers cut out a lot of the waiting and extra costs involved with the traditional sale process, it’s possible to sell far more quickly this way.
With a mortgage, there’s always a risk that the deal could fall through. A cash payment assures this doesn’t happen and the buyer and seller can close the deal as soon as possible.
You’re Experiencing Financial Difficulties
Perhaps the most widely known reason to sell for cash is financial difficulties. Many homes sold for cash are homes that the seller is unable to afford to upgrade or renovate for a traditional sale, thus giving for-cash homes their fixer-upper reputation.
Many house-flippers and investors are on the lookout for cash-only home sales in hopes of transforming a house for a profit. If you’re experiencing financial difficulties or struggling to afford updating a home for sale, letting your house go for cash can be a great and viable option.
You’re Behind On Your Mortgage
If you’re behind on your mortgage payments with no hope of catching up, the foreclosure process isn’t your only option. It’s possible to sell your home to a real estate investor or flipper for cash and avoid the negative effects of foreclosure or a short sale. While this may not be the most optimal way to sell your home, it can be a fantastic option if you’re in danger of moving toward foreclosure.
Selling Houses For Cash May Become The Next Big Thing
Selling a house for cash isn’t just reserved for homeowners trying to get rid of homes with major structural issues. Taking cash offers can be a great option for those looking to sell quickly, get paid and move on. Before deciding to take a cash offer, however, make sure you review the pros and cons of avoiding the traditional listing process.
If you are looking to sell a house for cash, contact our team at St. Louis Realty Advisors by giving us a call at 314-270-1601.