Are you thinking of selling your home?
Whether you hire an agent or go the FSBO (for sale by owner) route, the steps are essentially the same. You have to find out how much your home is worth, get it ready to sell, review offers from buyers, and prepare for closing.
For some sellers, though, especially first-timers, one question that keeps popping up is: “Should I entertain cash offers?” Here, we’ll talk about cash offers for homes, the types of buyers making a cash offer on a house, and why in some cases, an all-cash offer is better for sellers.
The Basics of Cash Offers on a Home
An all-cash bid on a property means there’s no mortgage lender involved in the process. For this reason, some home sellers find cash offers more attractive. Not only do they need to worry about the buyer’s financing falling through, but they can also rest easy knowing that they won’t have to wait for months to sell their homes.
Of course, some home sellers are prepared to wait, as long as they get the best offers. Even before listing, they know that mortgage underwriting plus appraisals take time, but receiving high bids makes the waiting worth it. Besides, some sellers aren’t able to move out quickly, so selling fast isn’t an issue.
However, if you can’t afford to have your home sitting on the market for too long, an all-cash offer is a good option. Despite sorting out title policy, insurance, closing documents, and so on, the whole thing can be wrapped up in as little as 14 days.
Buyers Making a Cash Offer on a House: Investors, Flippers, and So On
There are different types of cash buyers who might be interested in snatching up your home. For example, investors or investment companies that are looking to buy wholesale will want to close faster so they can get to developing the area.
Another type of cash buyer is a flipper. If you’ve seen TV shows where people buy homes that aren’t in tip-top shape so they can renovate it and sell it for a profit, those are fix-and-flippers.
Some buyers who are looking to purchase their dream homes will also try to offer cash just so they can stand out. If you receive a lot of offers for your home, an all-cash bid from a determined buyer might be the one you’ll find the most attractive, especially if it’s particularly high.
Why Sell Your Home for Cash?
You already know that if you sell your home for cash, you wouldn’t have to wait too long before closing, but there are other benefits to consider as well.
With cash buyers who buy homes as-is, you don’t need to spend money on expensive repairs or upgrades. It’s also ideal if you need fast access to cash for whatever reason (medical emergency, divorce, etc.).
And finally, if you accept a cash offer, you don’t have to pay commission fees. You get to keep all the money from the home selling process.
Looking for More Home Selling or Buying Tips?
Now that you know more about all-cash bids, as well as the types of buyers making a cash offer on a house, don’t forget that there are more real estate guides you can learn from.
For more home selling or buying advice, feel free to check out our other articles.