SHOULD YOU SELL YOUR HOUSE FOR CASH? 8 THINGS TO KNOW

August 7, 2019

DBABBAGE | FEBRUARY 11, 2019 | 0 | BOOST YOUR NET WORTH

This year is a great time to list your house for sale. In fact, now might be a better time to sell your house than the upcoming years.

But should you sell your house for cash?

That depends on a number of things.

In this guide, we’ll tell you eight things you need to know about house-for-cash purchases and whether it’s the right option for you.

Let’s dive in!

1. YOU CAN SELL AS-IS

One of the best benefits of selling your house for cash is you don’t have to make any repairs or spend time doing any staging.

Why?

Because, in most cases, the person buying your house for cash will be an investor. These investors will purchase your house in its current condition, spend some extra money fixing it up, and flip it for a profit.

This means you don’t have to spend any money making updates to your home that might not end up paying off in the long run. When you sell to an investor, all you have to do is pack your belongings and hop in the car.

There’s no extra work required.

2. BUT THE INVESTORS PROBABLY AREN’T LOCAL

Is it a bad thing the investors aren’t local? Not necessarily. But it does mean they won’t be familiar with your neighborhood.

Again, that might not be a problem.

However, if you live on one of the best streets in town, the investor won’t know about it. That means their offer might not reflect this value.

If these factors about your home are important to you when selling, you may want to hire a real estate agent who knows your area well. The sales process will take longer when you choose this option, but it may help you get a better offer for your home.

3. YOU CAN SELL YOUR HOUSE FAST

Because an investor will buy your house as-is, you can sell your house much faster than a traditional sale.

Not only do you not have to make any updates or repairs to your home, you also don’t have to go through the process of listing your home for sale. That means you don’t have to stage your home, hire a photographer for professional pictures, spend any time or resources on marketing.

You might not even have to do any inspections.

And when you sell your home fast, you get to move fast. If you’re going through a divorce, dealing with a foreclosure, or have to make any other type of emergency move, you can’t afford to wait around for two months or more.

For cash sales allow you to get out of your house right away.

4. BUT THERE ARE OTHERS (MAYBE BETTER) OPTIONS

Just because you have to move quickly doesn’t mean selling your house for cash is the only option. There are several other alternatives that might be a better option for you.

For example, you can consider renting out your home instead. The rental income can cover your mortgage payments, and you might even have some extra money left over for other necessities.

Even taking maintenance into consideration, renting out your home can leave you with more money than a cash offer.

5. YOU DON’T HAVE TO WORK WITH LENDERS

One of the reasons selling houses takes such a long time is because sellers have to work with the banks. Most people have to borrow money when they sell their house. That means you’re locked into a certain timeline.

Unfortunately, that timeline belongs to the bank, not you.

When you sell your house for cash, you don’t have to work with any lenders of any kind at all. Because you aren’t financing your home like normal, you also won’t have to worry about complications making the sale fall through.

Many investors also pay the closing cost for a for cash sale.

On top of that, you don’t have to work with a real estate agent for this type of sale. Any money you would have normally spent on commissions or other fees you now get to keep in your pocket.

6. BUT YOU HAVE TO WATCH OUT FOR SCAMS

The cash-for-homes industry is full of scams.

Why?

People who need to sell their house fast are usually vulnerable. They’re people who’re desperate to sell. If you’re in the middle of a divorce, going through bankruptcy, or are making an employment transfer, you’re at risk of being targeted by one of these scams.

So any time you sell your house for cash, you have to keep both eyes open and be extra careful.

Investors don’t need a license to buy your home. Research any investor interested in your home to make sure they’re legit.

Don’t let scams scare you away from selling your house for cash. There are many legal and professional cash-for-house businesses out there. So always get more info about who you’re selling to before you to anything.

7. YOU DON’T HAVE TO WORRY ABOUT THE SALE FALLING THROUGH

If you’ve sold a house before, you might have gone through the experience of a sale falling through. In one moment, you’ve accepted an offer and are packing your things. In the next, you suddenly lose the buyers, and you have to start over.

This doesn’t happen with cash sales.

Once the investor gives you the money, there’s no way to back out. You can close a for cash sale in as little as one week.

8. BUT YOU’LL GET A LOW OFFER

It’s important to realize you won’t get the full value of your house when you sell for cash. You’ll usually get about 65% to 80%, but there’s a good chance you’ll lose some money.

Here’s why.

Investors want to buy your home for as little as possible so they can flip it and make a profit. They don’t want to live in your house. They want to make as much money off it as possible, which isn’t a bad thing.

But it might not be the best thing for you.

If you need to move out of your house as fast as possible, for cash sales might be the best option for you. If you’re looking to get as much money as possible for your house, this isn’t the route you want to go.