Selling a house can be a stressful process especially if you need to have it sold quickly due to your situation. So you may be wondering if taking a cash offer for your home is the right solution. We’re not here to pressure you into anything by saying this is the best option, however, in this article we’ll breakdown the pros and cons of selling a house for cash so you can make a better-informed decision.
Let’s jump right in.
The Pros of Selling A House For Cash
1. Selling the house As Is, where is, and no warranties
When you sell a house for cash, you can sell it as is. This makes things easier on you especially if your home needs to fixing up and you don’t have the time or the money to do so. Most traditional lenders will not lend on a house that requires major renovations or updates. So that eliminates most of your buyers right off the bat. But as mentioned, if your house has repairs needed, selling your house for cash might be a good option.
2. Quick closings
Most cash buyers and professional home buying companies in the Reno area will be able to close much quicker than a traditional buyer. The majority of them don’t have to jump through all the bank’s hoops just to buy the house. So your normal 45 – 60 days it would take for a normal sale, a cash buyer can get the job done in 7 – 30 days some can even be faster than that.
3. No Fees or Commissions to Pay
Unlike selling with the help of a real estate agent, there aren’t any fees or commissions that you will have to pay when you work with a legitimate home buying company. With that, you can save money when you sell your property. As you may know, realtor commissions are typically 6% of the final sales price so if your house sells for $300,000 you’ll end up paying $18,000 in commissions.
The Cons of Selling A House For Cash
1. Lower sales price
Selling your house to a buyer that gets a traditional loan will pay the market value for your home, but when you sell it to a professional home buyer or even a cash buyer, the price will be lower. The don’t pay full retail value because they need to make money on the property. Whether their goal is to fix the home up and resell it or to hold it as a rental, there has to be some profit in it for them. Just like if Walmart or any other store paid full retail for the items they sold they would go out of business.
Of course, there are some unscrupulous people out there that are trying to rip you off. However, you will want to do your research on the home buying company that you feel is right for you. Heck maybe check out two or three of them just to get an idea of what they are doing. The best way to make sure that you will not be scammed is to use a title company or a real estate attorney when you sell your house for cash. Also, check out this comprehensive guide all about avoiding housing scams.
Selling a house for cash is not the most ideal for everyone, but for the people that are faced with a difficult situation such as foreclosure, inherited a property they don’t want, own a vacant house, or any other situation not mentioned, they may choose to sell to a professional home buying company.
Just like with anything, do your research and make sure you trust the company you’re working with and make sure the actual closing is done at a reputable place like a title company. The vast majority of real estate investors out there are honest and do great business. Work with those ones, check out testimonials or references and of course, trust your gut.