This is what you need to consider about cash offers.
The appeal is there – you can sell your home fast for cash and move into your next home sometimes in a matter of just a couple weeks. But is selling your house for cash any different than the typical home selling process? And will someone actually buy your home with a cash offer?
What is a cash offer?
A cash offer is when a potential buyer bids with all-cash, meaning there’s no mortgage or other financing involving a mortgage lender. All-cash offers also tend to have quicker closing dates since there’s no waiting for the mortgage underwriting process to finish.
The number of cash offers you may receive can depend on the local housing market, your home’s condition, or if you seek out a cash offer online.
Who buys houses for cash?
- Buyers looking to stand out
- Cash for home companies note you may actually receive 50-70% of your home worth.
- House Flippers
- IBuyers note that IBuyers often charge convenience fees for selling fast so you may receive less than the offer.
Reasons to consider a cash offer
- Is the best offer
- The property you have is a rental or investment.
- You have inherited a home
- You need access to your home equity now.
- You are moving and need money for a downpayment.
Benefits of a cash offer
- Fewer contingencies
- Less risk
- No appraisals
- Shorter closing process
Should you sell your house for cash?
When the time comes to sell your home, consider both your current situation and what you hope to gain from selling your home for cash. If you sell your home for cash you can expect less of a risk that the buyer’s financing falls through, a quicker closing process, and you may avoid some contingencies and an appraisal. Keep in mind that a cash offer could be less than you expect, but it also might be what’s best for you.
See full article:Redfin