Selling your home for cash can seem like a dream come true. But before you do, it’s important to know what the process entails and how it differs from traditional homebuying.
More and more homebuyers are choosing to make a cash offer when buying or selling a property. This trend is likely to continue because cash sales can be a winwin for both buyers and sellers.
Here are some of the key benefits of cash home sales:
Faster closings (and less paperwork)
When you sell your home to a buyer who does not use a mortgage, you can close your sale in less than 10 days. This can make a huge difference in your timeline and help you move into your new home sooner, especially when selling your property is urgently necessary due to life circumstances or financial concerns. For more info https://www.cashhomebuyers.io/alaska/cash-house-buyers-anchorage-ak/
No waiting for loan approvals, appraisals and other fees
You won’t need to submit an earnest money deposit or pay transfer taxes, escrow fees and title insurance on your cash offer. This can save you a lot of time and hassle in the process, and also ensures you won’t be impacted by interest rate hikes as much, which can increase your monthly mortgage payments.
A cash offer also means you won’t need a home inspection, which is often a good idea to ensure you aren’t overpaying for your home. Having an inspector look at the house before you buy can give you more insight into its condition, and reduce your risk of being stuck with a home that needs work that you can’t afford.
Lower price for your home
When a buyer makes a cash offer, they often offer less than market value because they aren’t concerned with the physical condition of the property. While this isn’t necessarily a bad thing, it can make you feel rushed or that the cash buyer is taking advantage of you.
It’s important to understand that a cash offer is not a guarantee of the final sale price, so you should always ask for a written offer before making your decision. This can give you a good sense of how much you can expect to get for your home and what it will take to close on the transaction.
Your real estate agent can also advise you on how best to present your cash home offer. The key is to show the seller that your offer is well-thought out and that you are confident that your offer is the best one.
Generally, cash offers are made when the price is right and there’s not a high likelihood that you’ll get a better deal through conventional financing. You might also want to consider working with a Realtor who has experience in cash home sales to maximize your chances of getting the highest possible price for your home.
In many markets, the amount of cash home sales has been rising, according to data from ATTOM Data Solutions. Among metropolitan statistical areas with at least 200,000 population, cash sales accounted for just over a quarter of single-family home and condo sales in 2018. This is significantly higher than the pre-recession average from 2000 to 2007.