Is a Cash Home Sale Right for You?
You may be thinking about selling your house soon. Or, you might be in a situation where you NEED to sell your house as soon as possible. There are many reasons why you would want or need to sell, and it’s important to understand your home selling options. There may be solution that works best for your particular situation.
What is a Cash Home Sale?
One option that you almost always have is a cash home sale. You would sell your house in a cash transaction, most likely to a real estate investor who is interested in purchasing your property.
A cash home sale is not the best solution for every homeowner. The main drawback is that you generally won’t get as much money for your house. If you want to maximize your profit, you will want to take all the necessary steps to prepare the property for an open market sale. This means hiring a Realtor®, cleaning and staging the home, and making repairs/upgrades to increase the value of the house. These are steps that will take some time and will cost you some extra money, but they are worth it in the end if you truly want to get the highest resale value.
When a Traditional Home Sale Makes Sense
If you aren’t in a huge rush to sell and are in a healthy financial situation, then a traditional real estate sale is probably going to be your best bet. The only home sellers in this position who may not want to go this route are ones who don’t want to deal with the process. They don’t want to take the time to get the house ready. They don’t want to work with a real estate agent. They don’t want to publicly market their property and have an endless parade of open houses and buyer tours. If you just want to sell quickly with as little hassle as possible, you may be willing to take a little less for your property and accept a cash offer from an investor.
What if I am in Financial Distress?
We do see the above scenario from time to time at PropertyLark, but most of the time we are dealing with homeowners who want or need to sell their houses as quickly as possible. They may be in a state of financial distress (sudden unemployment, unexpected medical expenses, behind on mortgage payments, defaulting on property taxes, etc.). They are looking to get out from under the financial burden of their home. A cash sale may allow them to recoup what they can from their investment and move onto the next chapter of life before something devastating like a foreclosure happens. A preemptive cash sale could be the best solution if foreclosure is imminent.
Other Cash Home Sale Scenarios
There are some other scenarios we see often. One might be a divorcing couple who needs to sell the property quickly and split the proceeds as part of the divorce settlement. Another is someone who is relocating for work or other reasons and needs to get the sale conducted as soon as possible. We also deal with a lot of fellow real estate investors and people who have inherited properties that they don’t really want to deal with anymore. They just want to sell the house before sinking any more money into it.
Understand Your Home Selling Options
Though it’s true your house will likely sell for less in a cash home sale (compared to a traditional sale), the other benefits may be appealing. First, the deal can be done very quickly and with much fewer closing complications/risks. Cash transactions are simpler and can be closed in days or weeks rather than the months a traditional sale will usually take. Cash home sellers don’t have to worry about making repairs, cleaning up the place, hiring a real estate agent or staging. Cash real estate investors will offer to buy the property in as-is condition, which is a fair trade-off for purchasing it at a lower-than-market price.
Cash home sales are generally easy and uncomplicated to complete, which is appealing to many home sellers. There are even situations where a cash sale ends up netting the seller more money by the time you factor in all the ownership costs and selling/preparation expenses involved in a traditional sale. It’s a good idea to get a cash offer from a reputable buyer and then crunch the numbers—comparing against what you think your house will sell for on the open market and how much it will cost you to sell it that way. Even if the cash sale is still less profitable, the difference may not be as drastic as you think and the other benefits of the cash deal (expediency and simplicity) may be worth it.
Ultimately, you have to explore all your options and determine which route is best for you as a home seller. PropertyLark will gladly make a cash offer on your house, but we also offer many different home selling and financing solutions. Contact us and let us know about your property and your reasons for selling. We’ll work with you to find the ideal outcome.