Pros and Cons of Selling Your House to Cash Buyers

Ever noticed how tempting those ‘we buy your house for cash’ advertisements are? 

Those ads are flashed by home-buying companies looking to buy distressed houses or properties requiring minor repairs. 

But is the process as simple as it sounds in the ad? Shouldn’t you worry about mortgages, appraisals, and taxes on selling a house?

We have gathered a list of pros and cons to simplify what you will gain and lose from the deal. 

After reading them, you will be in a comfortable position to make an informed decision. So, let’s get started:

Pros

1.     No preparations are required

There is more to selling a house than simply finding a genuine buyer. Your house must be in a pristine condition to attract buyers.

But keeping your house in tip-top condition can be challenging, especially when your kids have a habit of leaving their paintbrushes and dirty socks on the floor. 

That is why it is best to choose cash home buyers who are least concerned about your house’s conditions. They will buy your home as it is. 

2.     Quick closing

You cannot rely on traditional selling methods if you need some quick cash. Processes like mortgage lending and underwriting can take up to 60 days. Besides that, the risk of a decline in the buyer’s financial condition is always prevalent.

But, cash home-buying companies do not have to worry about mortgage underwriting and appraisals. They finance their purchases by themselves. That is why they can close a deal in a week. 

3.     No commissions 

Say you’re selling your property the traditional way; you would need to pay a portion of your sales to the agent as their commission. 

Besides, there can be additional charges for getting the paperwork done and closing the deal. 

With cash buyers, there is no need to worry about commissions and closing charges. Here you are in direct contact with your buyer. Moreover, the good news is that cash buyers do not charge any fees for completing the lengthy paperwork. 

Cons

1.     Less profitable

Although cash buying eliminates the hassle of commission and extra charges, it won’t get you a highly profitable sale. 

Cash-buying companies aim to purchase your property at a minimum price, use it as a rental property, or modify it further to sell it to someone. 

That is why you are highly likely to get a quote lower than the market price of your property. 

2.     Repairs determine the price.

Many sellers think they will surely get a reasonable price regardless of how distressed their house is. 

Although cash companies may not openly say it, they decrease their overall price quote based on your home’s condition. 

So, do not make the mistake of thinking you will get a reasonable price with cracked walls. 

3.     No time to prepare

You may want to sell your house quickly, but are you prepared to take all your belongings and shift to your new home within a week? 

Cash buyers may have their plans set up for your property already. As a result, they may ask you to move out as soon as the deal closes. 

Therefore, it would be best to ensure that you already have your new place sorted before entering the deal with cash buyers. 

Final Thoughts- Are cash buyers worth selling your property to?

Well, the answer depends on your priorities. For example, cash buyers are worth it if you are ready to compromise on profits for quick cash. 

But if you have the liberty of time and can afford some stressful months, then the traditional way of selling is right too. 

So, the ball is in your court now. Will you choose cash home-buying companies over traditional realtors?