Pros and Cons of Selling A House for Cash in Sacramento ? Selling your house for cash is one of the best ways to sell your home in a hurry. Whether you are going through a divorce, worrying about potential bankruptcy or foreclosure, or are ready to sell and want to avoid the hassles of traditional sales, there are many companies willing to buy your house for cash. Before you decide this is the right decision for you, consider the following pros and cons.
Pro: Selling the “Unsellable” Home
If your home lacks curb appeal and hasn’t had an update in a few decades, it might be unsellable in the eyes of real estate agents and buyers. This means your house could sit on the market for months without an offer if you choose to go the traditional route. However, if you decide to sell your property to an investor for cash, you avoid ugly house syndrome and go straight to the sold stage.
Con: You Could Deal with Scammers
The “sell your house for cash” option can be a challenge if you choose the wrong buyers. There are a lot of scammers out there waiting to take advantage of people desperate to sell their homes fast. This is even worse if what is driving you to sell for cash is financial issues such as potential foreclosures or bankruptcy. When the wolf is at your door you can be pressured into making decisions too quickly and the next thing you know is what was tagged as a no-fuss transaction turns out to be a scam to get a hold of your equity.
Pro: Avoid Inspection Challenges
If your home needs extensive repairs you can’t afford, selling for cash is often your best option. When you put your house on the market, homebuyers will come armed with a long list of wants and needs. If you can’t meet them, you won’t see any offers. Depending on the age of the house, issues may include outdated plumbing, cracks in the foundation, insulation problems, damaged shingles or inefficient HVAC systems.
Even if you do get offers, buyers will want an inspection and although many repairs might be superficial, others might be breaking code violations. These repairs will have to be made. Selling for cash skips the inspections and provides you with an easy sale.
Con: A Lot of Players in the Cash Sale Game
It can be just as overwhelming trying to navigate the world of cash sales as it can if you go through the traditional home selling process. When wondering how to sell my property to an investor, there are a lot of players in the cash game to choose from including:
- Buy-and-hold investors: This type of cash for sale player can be an individual or business looking to purchase and then rent out properties. This generates income for them and allows them to offer cash upfront for a quick sale. This is always a good option as it is quick, legitimate and offers flexible closing dates. Another benefit is they tend to pay more than individuals who will come in with low-ball offers so they can afford to make upgrades to the home.
- House flippers: You see these guys on tons of home shows. They buy up a home for a low price, redo the home and then make crazy profits when they sell it. Because they are in it for the profits, the flipper tends to come in with low offers and you are still faced with going through the traditional home selling process.
- Real estate investors (companies): Real estate investment companies also get into the buy for cash game, with a focus on buying homes for cash and doing the flip thing. Because they have more financial backing, they tend to offer you a fair price for your home and will then take care of repairs and upgrades before selling for a profit. They can afford to be more competitive in their offers and will outbid the individual house flipper every time. This makes them an exceptional “best of both worlds” option as you get the best price and avoid all the traditional hassles of selling.
- iBuyers: This is the latest in the buying for cash game. Also known as “instant buyers,” these companies are an automated valuation model (AVMs). These companies do everything online. They are not interested in high maintenance fixer-upper homes and instead are looking for homes in better condition. Their goal is to get in fast, buy homes they can then resell fast and keep their inventory of better-quality homes available for buyers looking to do the same. Basically, their goal is to streamline the buying and selling process. If your home is in good condition, this is a good option as it is quick cash and you avoid all the hassle of traditional selling. While you’ll be likely to get very close to fair market value, you will also be charged as much as 10% in fees and they also charge you for repairs.
Pro: Fast and Certain Sales
If you go with an investment company or iBuyer, your sale should be fast and certain. These companies specialize in buying homes, although their target homes and purposes might vary. As mentioned, in the case of the investment company this is a good choice as even if your home is in ill repair, they still offer a fast and certain sale as they are like mega flippers. You avoid the hassle of staging, viewings and negotiations and sell your home for a very fair price.
Pro: As-Is Buyers
Chances are you won’t be able to sell your home the traditional route if your home is a money pit. Sometimes the only way you can find a buyer going the traditional route is to sell your home “as is” at a greatly reduced price. The beauty of the as-is sale is that it literally means the buyer goes into the deal knowing they are taking your home in its exact existing condition. This means no inspections and no demands for repairs. That is a sweet prospect if you have not been able to afford upkeep for your home. Although you might get plenty of flippers sniffing around, their goal will be to pay as little as possible, and even if they offer cash it won’t be as much as an investment company. Many investors interested in cash sales always buy as-is.
Pro: No Financing Woes or Contingency Clauses
Finally, selling a home the traditional way takes longer because the bank’s timelines slow things down. There is no financing to worry about with a cash sale, so things go through without red tape and painful lender paperwork.
As well, traditional sales allow for contingencies in the offer. Contingencies are put in place to allow buyers to back out of the deal should certain things not go their way. This can be nerve-wracking and keep access to funds out of your reach for months. Contingencies are not always related to a home inspection. Common contingencies that can ruin your deal might include the buyer’s home has to sell first or they must get financing.
When you sell your home to Property Sales Group, you will benefit from all of the pros and not have to worry about any of the cons of selling your house for cash. Schedule an appointment with us to discuss your sale and take the next step in the process.