Cash buyers have become very common in the last few years as more and more people have begun real estate investing. Selling a property to a cash buyer can be tricky for sellers, just because they may be unfamiliar with how the process works. Many sellers may think that cash offers are too good to be true, but that’s not the case. In many situations, a cash buyer might make the most sense when selling your home. Here are some points you should consider before listing your home:
What is selling to a Cash Buyer?
It’s a really simple straightforward transaction where the buyers are ready to purchase your home in Baltimore/ DC metro area without a mortgage or long-term financing method. They will most of the time buy properties to renovate or rent and are willing to move quickly to close deals. Are you wondering about selling your home to a cash buyer? Read the following pros and cons.
2. No traditional inspection or bank appraisal: cash buyers are buying properties to fix it. So they will take it “AS-IS” condition, meaning you do no repairs on the home before closing.
3. No closing cost and no commission: Cash buyers will often offer to pay for the Seller’s Closing costs and typically do NOT expect to be paid a commission as a result of the sale. Those two conditions combined will help the sellers save between 5-8% of their net profits on average during the transaction.
4. Privacy and hassle-free during the sale: working with a cash buyer means less visit in the home, no professional pictures needed, and no open house. During this Covid period minimizing strangers walking through your house is important.
2. Sellers will be the ones doing the negotiations attached to the sale. Investors will typically gather information about the property and even request to speak with you one on one during the process.
What about Listing A House For Sale?
The most common way to sell a house is through a real estate agent and list the property for sale in the Baltimore/ DC metro area MLS. By choosing this familiar option, sellers can leave the heavy lifting up to an agent. This choice still has some factors to consider before listing a house for sale:
2. Your agent will be reviewing contracts, negotiating offers, or even coordinating viewings of the home. Being guided through the home selling process can reduce the stressful components associated with selling a home.
2. Often when listing a property there is the potential for additional contingencies to be added to the sale which isn’t relevant when selling to a cash buyer. And so depending on the property appraisal and inspection, sellers could be responsible for making repairs before they close on the house. Unfortunately, those contingencies could derail the transaction before the buyers officially close on the property. These factors could reduce the profits from the sale of the property.
In a Nutshell
Deciding to sell your home is a big decision to make, both emotionally and financially. Learning more about traditional listings vs. cash buyers will help you make the right decision. Listing your home relieves some of the stress that comes with selling a house; however, you may need the speed that only a cash buyer can provide. Each situation is different and unique, but take time to consider how either of the above routes could allow you to maximize your profits when selling your property.
If you’re unsure which option is for you, we can help! Gain confidence and a clear direction by booking a free consultation call with us. We’re here to answer your questions and serve you.