Do you want to sell your house and close the sale as fast as possible? Do you need to get your hands on some cash to settle other obligations? If yes, you should consider selling your home to a cash buyer. However, while some buyers may claim to be cash buyers, in reality, they are nothing close to that. As such, we want to help you understand what a cash house buyer is, and the pros and cons of selling to one.
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Who is a cash house buyer?
To avoid any confusion, a cash buyer of a home is someone or a company that has cash in their hands and intends to buy your house outright with funds already at their disposal. They will not need to secure a loan or apply for a mortgage. Unfortunately, this is the single condition that some ostensible cash buyers do not meet because they have to sell another property first to pay for yours. This means they do not actually have the ready funds as they make an offer for your house.
How is a sale to a cash buyer conducted?
The sale process to a cash-paying buyer is no different from a sale to any other buyer, more so from a seller’s viewpoint. However, the key difference is that the cash buyer does not need to secure a mortgage or a loan so this reduces the paperwork and waiting time.
On the side of the buyer, buying with cash means a faster purchase, and usually a better price. Nevertheless, a wise buyer will conduct their due diligence just as a lender would do when funding a home purchase. But the checks, property searches and inspections happen faster because the cash buyer and seller want to close the sale faster.
What are the advantages of selling to a cash buyer?
You stand to enjoy the following advantages when you sell to a cash house buyer, be it an individual or a company:
· Fewer costs – you avoid some costs like repair and renovation expenses because most cash buyers buy the house as-is, meaning without any need for repairs or improvements.
· Faster sale – unlike conventional sales that could drag and run into months, selling to a cash buyer assures a faster closure and the seller can get the money in a week or two, especially when selling to real estate companies that buy a house as-is.
· Lesser nasty surprises of a sale falling through – given that a cash buyer has ready cash and closes the sale in a few days, there are fewer chances of the sale aborting midway.
· No disruption for the seller- since the seller and buyer agree on when the house will be vacated, and no need to repair, stage the house or do showings, the occupants have no disruption like when selling the conventional way.
What are the disadvantages of selling to a cash house buyer?
Selling to a cash buyer has the following disadvantages:
· Lower prices – most of the time the property sells for less than the market value, but the seller can treat the difference in selling price and market value as the cost of quick cash, and fewer hassles.
· Possibility of scams – due to the faster sale process, if the seller is not cautious, they could lose their money to scammers masquerading as cash buyers. The critical thing is for the seller to do their due diligence well and sell to only trustworthy buyers.
Selling to cash house buyers is a faster and stress-free way to get money for your house, and if you need quick cash, you should consider it.