5 Reasons Why Selling to Cash Home Buyer Makes Sense

Is there anything better than cash-in-hand? It is possible that cash is better than your house when you sell it. Consider cash offers for homes or selling your home to a buyer who is looking to buy it in cash. This can make you feel a lot richer than you did when you first sat down. What is a cash sale? And when is it smart to cash out a home?

What is a Cash-Offer?

Cash offers can be made for homes up for sale. Cash offers for homes are made when a buyer gives cash to the seller instead of obtaining financing from a mortgage lender. A mortgage is the most common form of financing that home buyers require to buy a house. A cash home buyer, however, will be able to purchase a property without needing a mortgage loan or any other financial assistance. While cash offers tend to be lower than the property’s full market value, there are good reasons why. Cash offers come with low risk as the seller doesn’t have to worry that buyer financing might fall through. The seller does not need to spend their time, money, or resources on selling, negotiating, or upgrading the property.

How common is it for a homeowner to sell their home for cash?

Cash offers can be quite common. The most common scenario in which cash offers are made is from investors or investment companies who are interested. A homeowner can usually sell their home as it is. But there are many reasons that a cash home buyer might be interested. Some home buyers have cash available, such as the proceeds from the sale of their previous home. Cash buyers are also popular in highly competitive markets where delays in the financing may force the seller to accept a better offer. This is because cash buyers are more likely to buy a property than mortgage buyers. The property can also be sold as-is if it is a fixer-upper. When a property is in foreclosure, cash buyers can be sought. In these cases, homeowners must usually close within a short time.

Is working with a cash home buyer a good choice?

Accepting cash offers to buy homes comes with many advantages. First, closing a mortgage can take between 30-45 days and a cash offer might take as long as a week. Sellers will generally be better off accepting a cash home buyer’s offer in a market with high competition. Buyers who face the least amount of obstacles are more likely to succeed. House Kingz helps homeowners and treats them with respect & integrity. We have a reputation as one of the top real estate agencies in Washington, DC, and have assisted thousands of people in selling their houses for cash. If you find this appealing, then read on for five reasons why selling to cash home buyers makes sense.

1. Flexible and Faster Sale Process

Selling homes with cash offers is more appealing because there’s no fall-through risk and a quicker closing. Cash house buyers don’t have to apply for a mortgage. They already have the money and can close the deal quickly. It is possible to skip the mortgage application and approval process. It is easier to get financing if you do not need a mortgage. The buyer of a mortgage may face financial difficulties such as identity theft or a change in employment. These could ultimately lead to a sale being canceled. A mortgage deal can be delayed by up to one month due to underwriting. It is possible that the buyer will not be able or able to get a loan. Mortgage buyers are less certain and reliable. 

A cash sale of a home does not require documentation, underwriting, or a mortgage application. It is necessary for the buyer to arrange title policy and insurance, proof of funds, and sign closing papers. However, this may take only a few days. A buyer offering cash will have to show proof of funds. This proves that the buyer is ready to close quickly. There is no need to hire an agent if you’re selling your home cash. They don’t need to wait to take photos, list the home, or host open houses. A faster closing is more likely to make a seller’s pocket money sooner. A cash offer closing only requires a settlement, title, deed, and cashier’s cheque. The closing process is simpler and costs are lower because there are no transactions or fees from lenders.

2. No Need to Make Any Improvements or Updates

Typically, you can offer your house as-is in a cash deal. If your house is sold as-is, the buyer has the option to take it or leave. Before a buyer will agree to buy your home, you don’t have to agree that it needs to be repaired or upgraded. Therefore, cash offers for homes are often made with very few or no contingencies.

3. No Real Estate Fees

Cash offers on homes are a way to avoid paying a realty agent’s commission. A typical commission fee of 6 percent is charged, which could be significant in relation to your selling price. A seller may receive less money from a purchaser of a cash home than they would from a buyer who is looking for a mortgage, but they will be saving money on improvements, bank fees, and agent fees as well as interest fees.

4. Avoid the Nitty Gritty

There are many possible problems that could occur during the home-selling process. But, cash buyers can avoid many of the make-or-break steps. The seller wins because the buyer understands they will be getting the house as it is. A buyer doesn’t need an appraisal. A mortgage lender requires home appraisals. They are part and parcel of the cost of purchasing a house. Cash home buyers will often skip this process. This cash offer allows people to sell their homes quickly and reduces the time and cost of getting an appraisal. These fees are also applicable to cash buyers. In each case, a buyer must pay an earnest-money deposit, pay transfer taxes, pay escrow fees, and close costs. These fees are in addition and separate from homeowner’s homeowner’s insurance.

5. Avoid foreclosure

Your home may be subject to foreclosure due to unpaid mortgage payments. Selling it for cash can help you pay your debts and get back on track.

At House Kingz, our goal is to give the seller the most benefit by working with us to make a quick and hassle-free home sale.

We pledge to be fair, honest, and respectful with every interaction. Will act with integrity and not take advantage of any difficult situation. We will keep a positive outlook and work hard to make it a win-win scenario for everyone. Contact us today if you are interested in working with a cash buyer. We will work with the timeline you have and you’ll walk out with cash.

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