Life throws curveballs sometimes. At the most inopportune moments, we find ourselves needing to make major decisions about our homes.
Perhaps you’re facing foreclosure, you’ve experienced a death in the family, or you are on the verge of a major life change such as a divorce or separation of assets. You need to sell your house but the idea of it feels impossible. Your home is small or in disrepair; it’s not the best one in the neighborhood. Every day, you find yourself wishing your situation could improve, but the thought of selling your home – repairing, cleaning, and staging your residence for potential buyers – is causing you stress.
Fortunately, home sellers aren’t limited to this old business model anymore. The solution doesn’t have to be a traditional buyer buying your home. By selling your house to a cash buyer or real estate investor, you can avoid the lengthy process of dealing with real estate agents.
We’ll walk you through how to achieve your goal of selling a house trouble-free. We’ll cover everything you need to know about home sales and how to sell to an investor or a cash buyer. We will address pros and cons along the way. Selling your home to an investor is easier and more profitable than you think.
Who Are Cash Home Buyers
You might have heard of the cash model of home-buying and currently be asking yourself: should I sell my house to a cash home buyer? Cash home buyers are typically investors or a company that buys a home for cash. At times, they are called ibuyers or instant buyers. They will make an outright cash offer on your home. Too good to be true? Many legal companies out there purchase houses for cash. They are good on their word and will provide you with a great experience. No matter the cash home buyer you decide to work with, make sure they are an accredited Better Business Bureau (BBB) member. Check for timely responses to complaints and positive reviews. We always recommend that you do your due diligence on any cash home buyer before giving any sensitive information, signing a contract, or sending any money. Lastly, set reasonable sale prices if you decide to sell independently.
A cash home buyer will buy your house as-is. Selling as-is speeds up the sales process because you can skip preparing your home for an inspection – no need to spend $4,000 on a fresh coat of paint. Unlike in a traditional sale, a cash buyer will do the restoration themselves or rebuild your house with a new design. Perhaps they will turn your old home into one of their rental properties. A word of caution, though, even if you’re selling “as is,” an inspection could still be required.
The Deal Is Less Likely To Fall Through
Making sure a buyer’s financing is in order can be difficult. Mortgage buyers take 30-45 days to close a sale, but a cash home buyer can do so in as little as a week or two. Because cash buyers already have the money sitting in their bank account, transacting with them will, in all probability, be straightforward. Faster sales reduce the risk of the deal falling through. 15% of failed sales were due to sellers pulling out because the sale took too long for them.
Imagine keeping your home tidy and entertaining potential buyers every day, particularly during a time of great change in your life. One may sign an offer after some time only to back out at the last minute. You can avoid these inconveniences when you sell directly to a cash home buyer.
You can find out how much you can get for your home right away and have an instant cash offer with cash sales. Cash home buyers can typically close within a few days, providing they can immediately show you proof funds for the amount they’re willing to offer or what they call earnest money. It will also depend on the speed of inspections, appraisals, title work, insurance, and the closing agent facilitating the closing.
Apart from doing away with repairs, you will save thousands in closing costs. Picture keeping the 6% realtor commission to yourself. You’ll also save on appraisal fees, doc fees, credit checks, loan origination fees, but these are mainly for the buyer.
Times When It Makes Sense To Sell To An Investor
We’ve given you a background on cash home buyers and what it is like to conduct business with them. Below are instances when you should really ask yourself: should I sell my house to an investor?
Inherited A House
Your parents or in-laws might have lovingly passed on a property to you. It may be that you’re unfamiliar with it, it’s far away, or not in great shape. While it is not somewhere you’d like to live, perhaps your in-laws or parents have bestowed the property to you as part of your inheritance. Your hope is to avoid additional stress and grief without compromising on the true value of the property.
House Needs Major Repairs
After a decade or so, even the most well-maintained house will show signs of wear and tear. Homeowners may choose to hire contractors and go through extensive repairs. Others take it as an opportunity to start fresh, to move and sell to a cash home buyer or investor.
Real estate agents these days recommend that divorced couples try renting first before purchasing a new home. Many have reported that divorced couples returned to them to say they wished they hadn’t disrupted their family life or waited and selected a different location. However, if you are confident that changing the family home is the way, a cash buyer can help with your decision. During such a difficult time, having the home bought outright can save you additional stress during the home buying, selling, and moving process.
House In Foreclosure
Selling a house to a cash buyer helps many who are tight on money and are on the brink of foreclosure. If you can’t find a buyer for your home, you may end up renting it or having to pay two mortgages. You may also see your home foreclosed if you can’t pay the mortgage. A cash buyer can alleviate the pressure by initiating a quick sale of your property, enabling you to move onto the next phase of your life.
Need To Move Quickly
If the seller needs to access funds quickly or if they have to move soon for work or other personal reasons, a cash sale gives them a significant advantage. A seller doesn’t have to wait to sell, but can instead prioritize significant needs and pressures in their lives.
Selling your home to a cash buyer is as simple as finding the right home buying company, doing your due diligence, and taking your time to evaluate their offer. While you may not have planned for life’s unforeseen events, difficult times don’t have to be handled alone.
Assemble Houston provides experienced, transparent, and trustworthy home buyers who understand the seller experience. Having served over 3,000 homeowners for over three decades, you can trust us to buy or sell your home quickly and carefully.