If you’re a homeowner and wondering if selling your house for cash is possible, you’re in luck.
It’s not only possible. It’s a great option for anyone who wants to sell their home fast AND get the best bang for their buck.
But don’t get it confused. Selling your house quickly doesn’t involve using “physical cash.” It’s illegal in the United States to close a deal with a suitcase full of Benjamins and a firm handshake.
What are those ways?
Read on to discover everything you need to know about the process.
How Selling Your House for Cash Is Done
Typically, people who are looking to buy a home must first take financing and loans into account. This can be a long step-by-step process muddled in fees, loans, interest rates, etc.
When you sell your house fast for cash, you and your buyer won’t have to worry about any of those things. Your buyer intends to close in on the purchase fast. They want to get the best bang for their buck, and so do you!
As mentioned above, it’s illegal to sell a house using physical cash. Instead, closing a deal off-market is done either electronically or through a cashier’s check.
The Two Types of Cash Buyers
Cash buyers are not all the same. Each will have different reasons for purchasing your home.
It might be tempting to close a deal with someone off-market quickly, but it’s equally important to know the intent behind their purchase.
If you’re selling your house quick for cash, you’re likely to come across these two types of home buyers:
- Real estate investors
- Individual buyers
Keep in mind, you’ll want to have a clear picture of the value of your home to make sure both you and your buyer come out of the deal happy.
Real Estate Investors
Also known as “buy and hold” investors, these folk intend to rent out your home to someone else to make a profit. This means they’re more interested in how buying your home can make them money.
Real estate investors intend to:
- Keep initial costs as low as possible
- Avoid debt
- Have leverage over the property
- Prevent all risk of foreclosure
- Keep monthly expenses low
This means that to appeal to this particular range of home buyers, you’ll want to make sure the value of your home remains constant and appreciates over time.
Real estate investors won’t buy a home with a diminishing value because they intend to make a long-term profitable investment.
These folks have different reasons for making all-cash offers than real estate investors. Instead of renting out your home to someone else, their goal is to live in your home.
Here are some factors these all-cash buyers may be looking for before making their purchase:
- Living debt-free
- Avoid paying interest on a loan
- Avoid closing costs
- Closing on a house without any hassles
These individuals might not care as much about the appreciation outlook of your home as real-estate investors, but smart individual homebuyers won’t leave out this factor.
Make sure your home isn’t in need of repairs. If your home is in tip-top shape, the advantages of selling your house for cash to individual homebuyers might prove greater than those of real estate investors.
This is because most individual homebuyers are looking to settle down. They might be willing to pay more upfront.
Always Do Your Research Before Selling Your Home
The benefits of selling your house for cash depend upon the person you’re selling your house to. The possibilities are endless, so it’s important to know who you’re making a deal with.