When you see investors and flippers advertising “Sell your house for cash!” and “We love ugly houses!” in the Spokane, Washington area, many homeowners who may be interested in selling their homes are wondering if they should consider these options. While selling a house for cash has its benefits, it isn’t automatically better than a financed offer. Here’s what you need to know to decide if a cash sale is right for you.
If you are talking about a normal house sale to another person who plans to move into the property, then a cash buyer is always welcome so long as you get the offer you want. The fact is, if your buyer is able to purchase with cash instead of financing the home, the transaction is likely to be much smoother and quicker. Buyers who can manage to make cash offers know this, and they will always have a leg up on their competitors – even buyers who make identical offers that are financed.
But when it comes to selling to an investor or other party that does not intend to occupy the house, you need to take a few other things into consideration. If the party is making a cash offer equal to or over your asking price, it is almost always a good move financially. The only reason you might hesitate is if you have strong feelings about selling to an investor or house-flipper, rather than a family.
The benefits of a cash offer become questionable, however, when you are offered a lower amount of money for your home. That being said, there may still be circumstances under which taking a lower cash offer may be your best option. Here are some possible scenarios where such an offer may be a good choice.
If Your Home Doesn’t Qualify for Traditional Financing
If you’re selling your home as a fixer-upper project, fix-and-flip, or your home is in an uninhabitable state, it may not meet the requirements for conventional financing from a qualified lender. This means that, even if someone wants to purchase the house “as is” in order to renovate it, they will not be able to obtain the financing they require. Unfortunately, buyers themselves may not realize that the house doesn’t meet the lender’s requirements until you have already been under contract with them for a week or two. Having deals fall through because of this is frustrating. Under these circumstances, you may be willing to consider a lower offer from a cash buyer.
If you don’t have the time or the funds to remodel your house to bring it up to snuff, this may be your best avenue for a sale. A buyer who is able to pay cash doesn’t have to worry about whether your home will meet a lender’s standards. So when you’re selling a home that doesn’t meet the requirements for traditional financing, it may be worth it to you to accept less money but have peace of mind that the deal will go through.
If You Need a Quick Close
When you need to sell your home quickly, it’s hard to beat a cash offer. Whether you need to sell fast because of a work transfer, family issues, or financial hardship, a cash offer allows you to get to closing more quickly. This is especially important if you cannot afford to move out until your house is sold. Traditional financing takes time, and most houses take at least 30 days from offer acceptance to sale when a lender is involved.
Sometimes a closing may take even longer if everything cannot be completed in time, or if either of the parties run into snags. Delays can be caused by problems with appraisals, inspections, and loan processing paperwork. When an investing company purchases your home with cash, things move much faster than if a normal buyer wants to purchase through financing.
If You Don’t Want to Deal With Staging and Showings
If you cannot move into a new home until your house sells, you will probably have to deal with agents coming to show your house. Many sellers don’t want to deal with the hassle of staging their house and having showings take place while they are still living in it. This can be very stressful, as it requires you to keep your house clean and orderly all the time, and you may need to leave the house at short notice to let an agent show it. This stress is multiplied if you have children or pets. If you’re willing to take a cash offer from an investment company, you can avoid the stress of numerous showings and constant cleaning.
All of these are valid reasons to consider cash offers from non-conventional buyers. But if you work with the Legacy Group, you can maximize your options.
At Legacy Group Real Estate, we provide sellers with a straightforward way to sell their homes for cash. If you want to make a cash sale of your house “as is” without having to fix it up or clean it up, we can negotiate to make an immediate cash offer on your home.
Alternatively, you can get the best of both worlds: putting your house on the market, as well as having a cash offer waiting in your back pocket. With our guaranteed sale program, we will negotiate to establish the price and the closing date that you want. If we cannot sell your house at that price and by that closing date, we will purchase your house at the agreed-upon price.
If you have questions about these options or about buying or selling a home, give Legacy Group Real Estate a call or send us a message today.