The increasing influence of the internet and social media is making cash purchases more prominent in the home selling market. The National Association of Realtors has even reported that one out of every five home sales today are all-cash transactions.
If you are planning to sell your home quickly, cash offers might easily catch your attention. But are these deals the best option for you?
Let’s explore this emerging selling trend further. With a clearer idea of your options, it will be easier for you to make a definitive decision.
Who is buying?
Cash buyers for houses have traditionally been known as equity purchase companies. More recently, they are also being referred to as “opportunity investors.”
Put simply, common cash buyers today include:
- Rental property investors – Taking a “buy-and hold” approach, these investors purchase houses to convert into rental properties that generate passive income.
- House flippers – You might be familiar with these from your favorite real estate-based reality TV show. These buyers target houses in poor condition, with the goal of renovating and reselling at a much higher price than it was bought for.
- “iBuyers” – An increasingly popular option in today’s digitally connected real estate market, “instant buyers” use the internet’s reach to attract home sellers looking for quick and direct transactions.
The advantages of selling for cash
- Buyers are willing to purchase your property as-is
When selling directly to a cash buyer, you can skip the tedious cleaning and repair work. You don’t have to hire any professional stagers, photographers, or property inspectors.
- Faster deals with less paperwork
If you need to relocate to start a new job or need to move because of an urgent life event, a direct cash sale can be the speedy and convenient option that you’re looking for. Because the cash buyer doesn’t have to apply for a mortgage, you can close the sale in as little as two weeks.
- Avoid contingency clauses
In a direct sale, there are no contingencies that will allow the buyer to back out from a previously agreed upon purchase.
Risks to watch out for when selling for cash
- You are likely to get a lower sale price
The negotiation phase is among the home selling steps that a direct cash purchase will bypass. While you might be selling quicker, you may have to settle for lower profits in return.
- Your home might not be eligible
While fixer-uppers appeal to house flippers, other direct cash buyers may still be picky based on the condition of the property.
- It might be a scam
Selling to a direct cash buyer requires a lot of homework, specifically background checking. Beware of buyers who seem too eager to buy the house sight unseen, especially if they claim to be based or moving abroad.
Communicating only via email is another possible red flag. A serious and legitimate buyer will have no problem meeting face-to-face and visiting the property in person for a firsthand viewing.
Alternatives to selling your house for cash
If you want to make sure of legitimate returns for your property, consider the following ideas instead of selling for cash:
Earn passive income instead by renting out your property
Offer the property on a rent-to-own or lease-option arrangement
Partner with a local real estate expert who has a good track record for quick and profitable sales
To get the best results and a stress-free home selling experience, work with an experienced and knowledgeable Realtor. Charlotte, NC homeowners can always find reliable professional partners in the Valarie R. Brooks Real Estate team. Call us at 704.488.5458 or email Valarie@ValarieRBrooks.com for more information.