Most people find the process of moving from one house to the other as very overwhelming. It takes a lot of time and work to make that transition. On top of that, there’s the fact that they need to find someone to buy the house from which they’re moving.
Selling a house is no easy task especially if you’re not particularly familiar with the real estate industry. It might take you weeks or even months before you get a potential buyer. Even after getting the buyer, there’s the task of closing the deal if they agree to buy your house.
Real estate agents who would ideally be the go-to solution to help sell your house, can be difficult to work with and are also expensive. As a result, people have turned to alternatives such as auctioning the house or even doing raffle sales.
However, the most appealing alternative would be to sell your house to a cash home buyer. According to the National Association of Realtors (NAR), over 30% of home buyers are now making their buys in cash.
Well, if you’re thinking to yourself, ‘That’s great but how do I sell my house fast York?’ York has a wide variety of legitimate cash home buyers who will take your house off of your worries at a reasonable fee.
Here’s a comprehensive guide on how to go about selling to a cash home buyer and the advantages it offers.
What Is a Cash Home Buyer
Cash home buyers are companies or individuals willing to buy properties with cash in hand. Because they have direct access to the money they need to make a purchase, they don’t need to take out a mortgage or loan to get the funds they need.
Most professional house buyers are largely property investors. They are in the business of buying houses at low prices so they can renovate them and sell or rent them at a profit.
A legitimate cash buyer will be able to provide evidence that they have the required sum to pay immediately. They’ll also want to complete the sale of the house in under 4 weeks without having to rope in a real estate agent or doing numerous house viewings.
Let’s take an in-depth look into what you stand to benefit from selling to a cash home buyer.
1. The Sale Process Is Quick
Selling your house for cash is a much faster process. Cash homebuyers don’t need to take a loan as they already have the money. This means they can bypass the mortgage application and approval process that you’d otherwise have to go through with a mortgage buyer.
You’ll also find that well-established cash home buyers probably have a line of credit with a local bank that will help finance the purchase.
If you decide to sell your home with a real estate agent, you’re going to have to wait for them to take pictures of your property, schedule an open house, and create a listing. These strategies help a lot to sell a house but you can forego all of that with a cash home buyer.
Assuming there is no mortgage on a house, the deal can be finalized between 7 to 14 days. All that’s required is to fill out the necessary paperwork, complete the financial transaction, and your house is out of your hands.
2. You Don’t Have to Pay Realtor Fees
When you use a real estate agent to sell your house, you’re going to have to pay them a commission fee. The fee can be as high as 10%, which means, for instance, if you sell your house for $350,000, the agent will take about $35,000.
Perhaps it may not seem a lot considering you’ll have made a good $315,000 but with a cash home buyer, you can keep all of that money. Bear in mind that you’ll have to pay the agent their commission fees regardless of if they went the extra mile to market and sell your house or not.
Some agents even charge an added fee to list and market your house. With a cash home buyer, you don’t have to incur all these charges that will dent your payout especially if your money is short and already budgeted for.
3. Avoid Foreclosure
Another financial benefit of working with a cash buyer is they can help you avoid foreclosure.
A foreclosure happens when a lender reclaims ownership of a property that had been sold to someone through a loan. This happens when the borrower, usually the occupant of the house, is unable to make their mortgage payments.
If you’re just about to lose your home to the bank, you need to know that you stand to lose a lot of money that you’ve already invested in your property. To avoid such an immense financial loss, a cash home buyer may pay cash so the owner can pay the bank and avoid the home going into foreclosure.
4. Chances of Closing the Sale Are Very High
So much can go wrong before a deal is finalized. A potential buyer could lose their job or the source of their financing. While doing a home inspection, the potential buyer may find something that requires fixing before the home is deemed move-in safe.
A lot of sale contracts also include contingency clauses that protect the buyer by allowing them to pull out of the safe for various reasons.
However, cash buyers are aware that many homes being sold in the market need some renovation and repairs. This means they’re highly likely to buy the house as-is.
It’s also more difficult for them to buy a home and turn back on the deal once the money has exchanged hands. As far as contingency clauses go, cash sale deals don’t depend on any.
5. Forego the Marketing Process
Another upside to working with a cash buyer is getting rid of the need for marketing the house to potential buyers. Marketing requires immense effort and time. There’s also the factor of expense in that marketing activities are quite costly.
With a cash buyer, the entire marketing process is eliminated because the buyer wants to buy the house as-is. Therefore, you don’t have to worry about the hassle of renovating the house, giving it a fresh lick of paint, or mowing the yard to catch the attention of potential buyers.
6. Mortgages Are Not Guaranteed
Fort mortgage home buyers, it matters little whether your credit score is good or not. If you’ve never gotten a mortgage, or haven’t got one in a while, you could be in for a big surprise.
A challenge that most home sales face every year is the lender pulling the funding if the home appraisal does not match the price you’ve agreed to pay for a house. Then you have to factor in how long mortgage approvals take.
However, with a cash buyer, you won’t have to experience all these challenges because the buyer already has the money and won’t have to look for a mortgage.
We’ve provided a brief insight into the interaction you’d expect from a cash home buyer below.
How a Cash Home Buy Process Is Done
Most cash home buyers in the United States adhere to a similar procedure when buying a house.
First and foremost, they’ll do a valuation of your property so they can make a fair value assessment of your house. They’ll analyze the house’s current state, its location and what nearby houses have sold for, as well as price value of what’s presently available in the market.
Another thing they’ll put into consideration is your house’s development potential. Remember, their goal is to buy your house, renovate it, and sell it at a profit.
While some companies may do that analysis remotely using publicly available property information or through computer software, some companies, especially individuals, will want to visit your property and do an in-person inspection.
After doing a valuation of your home, you’ll receive their offer which is usually around 70-80% of your house’s market value. Should you choose to accept this price, the cash home buyer will proceed to make the necessary arrangements to close the deal.
You should be able to hand over ownership of the house and receive money in your bank account within 7-21 days.
Consider Working With A Cash Home Buyer
Selling your property can take a lot of effort and time depending on the type of sale you intend to carry out. Working with a cash home buyer is ideal if you’re in urgent need of money.
Maybe it’s a medical emergency or you want to take care of critical expenses. Maybe you want to relocate to a different home in a distant location and you want to make the transition as seamless as possible.
All in all, you should be wary of some companies that present themselves as cash buyers but are actually middlemen looking for cheap deals from people who could be in desperate need of selling. The process of selling to these middlemen will take longer than is usual as they try to find a 3rd party entity to buy the property.