Go For the All Cash Offer Today
Selling a house can be a daunting task, especially in today’s market. The steps of finding a realtor, marketing and showing the home, searching for the right buyer, waiting for the buyer to complete all their due diligence, and then finally, closing all the paperwork, can be overwhelming. However, many of the challenges associated with selling a home can easily be avoided by selling your home to an all cash buyer.
We do not mean an all cash buyer found via marketing your property and waiting for them to come to you – we mean sell your property to the established, well known, investor, who is motivated and has the capital to close on every deal. Our tip: avoid the hassle and get out quick.
Save Time and Money
Many realtors will tell you that you risk losing money if you go straight for an all cash offer; however, what they forget to mention is that taking a property to market does not necessarily create a higher price for your property, but it does create an opportunity for the realtor to get a payout. The hidden fees in escrow and closing costs can often outweigh the potential increase in price you may get on the house. For example, a commission payout for a seller is on average 5% to the buyer and sellers broker, combined, plus up to another 5% paid for closing costs. Many of these charges can be avoided by just going for the all cash offer.
An additional factor to consider is that taking your home out to the market does not guarantee a sale! Imagine watching your property sit on the market for six months or one year, when the economy takes a downward shift. All of a sudden you have lost your time, and you have lost the original all cash offer you were originally given on the property. Now you have spent valuable time trying to get that extra dollar, while realistically losing thousands. You can avoid this mistake by selling all cash.
This is just a few benefits of selling your home all cash. Let’s take a look at some more.
No Loan Contingency
A loan can be a time waster and deal breaker in a real estate transaction. It is the due diligence aspect that creates an extended timeline on the escrow, typically four to seven weeks, which provides the lender enough time to appraise the asset and approve the loan. Throughout this time, you as the seller may be losing additional potential buyers. Then if the loan is not approved, you must restart the selling process.
An all cash offer removes this contingency, as there is no lender involved in the transaction. This can permit a deal to close in under 30 days, if needed.
Sell Your Home As-Is
With an all cash buyer you can also remove the appraisal contingency, which is deemed necessary if you are getting a loan. However, when you find an investor looking to buy a home all cash, they are typically finding a property to rehab and resell – therefore they are available to purchase the property as-is.
What does this mean for the seller? There is no need to worry about fixing piping and upgrading the kitchen – the all cash buyer is looking for this value add opportunities. In retrospect, the more aesthetical fix ups they have, the more of a profit they can return for themselves. Our recommendation is to remind the buyer of this when you sell – it is an easy go to negotiation that could get you that lost dollar.
With fewer contingencies, there is opportunity for a quick close – sometimes as quick as five to seven days. This can be extremely beneficial for those looking to get out of a financial pinch, such as paying off back taxes or avoiding foreclosure.
Additionally, quick cash offers benefits to a multitude of other motivated sellers – individuals seeking an equity cash out, someone following a job transfer, or individuals who inherited a property or who went through a recent divorce. No matter the reason, an all cash offer can help sellers avoid the complications associated with selling.
Is It Right For You?
Selling your home all cash can speed up the home selling process, make the transaction quick and convenient, and allow for unnecessary and unexpected complications to be avoided. Although you are gambling losing a buck or two, it can without a doubt, save you a headache in the end.
If you are interested in assessing your home, and are considering pursuing an all cash buyer, Gulf State Homebuyers is here to help. Contact us today and we would be happy to get you started on changing your future.