We have answers for you if you're wondering, "Should I sell my house for cash?" There are multiple websites, groups, and promotions that claim to buy your house for cash, letting you move quickly and skip the showing, negotiating, and financing processes. This is a different process from listing and selling your house for a cash offer. This is a process when a person or group (usually an equity purchase company) buys your house for a cash offer, often with all of the contents inside and without the property being listed, viewed, or inspected. This might sound like a great idea, and lead you to say, “I want to sell my house for cash!” However, there are some drawbacks to choosing this option. What might be the right choice for one homeowner might not be right for you. Let’s look at the pros and cons of selling a house through a quick cash buy.
4 Benefits of Selling a House for Cash
Selling a house for cash is appealing to many people. Some homeowners just want to get rid of their house and move on, worrying that leaving their home on the market will take too long. Other homeowners feel intimidated by the real estate process, and want to skip it because they aren’t sure what it entails. Some inherit a home and don’t know what to do with it. For these sellers, there are benefits such as:
1) You can sell your home fast. Many companies claim that they will buy your house sight unseen based on “market value” you can sell your home in a few days (or even a few hours) and start moving out.
2) You don’t have to prepare your home to sell. You don’t have to invest in the time and effort on renovations to improve its resale value and don’t have to dress it up for showings. Your home is ready to sell as-is.
3) You don’t have to wait on contingencies. Some home sales come with contingencies that the sale isn’t complete until the buyer sells their home or that the homeowner has to make certain repairs before the home is ready to sell. This doesn’t apply with a cash purchase.
4) You don’t have to deal with the bank. Banks tend to slow down home sales. Buyers have to work with their financiers and the banks have to decide whether or not they approve the loan. These financial institutions are pushed out with a cash buyer.
However, despite the seemingly multiple benefits of a cash buyer, speed doesn’t always equal quality.
2 Cons of Selling a House for Cash
Just because a solution seems easy up-front, doesn’t mean it is. There are many problems that come with cash sales that could make them just as frustrating as selling your home through a traditional process with the help of a Realtor®.
1) You will sell for less money. This is a fact. Cash buyers offer less money because they know that you want to skip the financing process. In exchange for skipping contingencies and home improvement, you will have to lose a few thousand (if not tens of thousands) of dollars. This is the main reason for skipping a cash buyer – and the only reason many sellers need.
2) Your buyer may be unreliable. While there are plenty of honest cash buyers out there, you will also encounter plenty of scammers. It’s not uncommon for people to receive mailers offering to buy their houses with cash. If this is the case, you should ask to see a “proof of funds” letter from the bank or should check the Better Business Bureau to make sure the company is reputable. Even legitimate companies specialize in scamming sellers. They make lowball offers and then pressure sellers into agreeing – only to flip the house for a significant profit a few months later.
Cash buyers often know how much your house is worth, and only have their profit in mind. Instead of letting them save money with a lower offer, you can sell your house on the market and keep that money in your bank.
Is Selling Your House for Cash a Good Idea?
If you are only selling your house for cash because you don’t want to work with a Realtor® or go through the real estate process, then no. You can try other channels like for sale by owner and probably still make more than accepting a cash offer. Plus, real estate professionals are there to make the process easier. They do the bulk of the legwork so you don’t have to worry about marketing and calculating the closing costs on your house. If you are not in a hurry to sell your house, then work with a Realtor® instead, and make sure you get the full amount that your home is worth.
Find the Right Realtor® to Sell Your Home With Effective Agents
If you want a seamless home sale process, work with a Realtor® who specializes in your type of home. Find someone in your area who has a reputation for quality. At Effective Agents, we use a data-focused algorithm to sort real estate professionals and choose the top options for our users. You can see Realtors® based on their effectiveness for you, not just their general popularity, and ensure that you get the highest price for your home.