When it comes time to sell your home, you may be wondering whether you should traditionally sell your home or opt for a cash home buyer. There are certainly pros and cons to each method of selling a home. Ultimately, the choice to sell your home with a cash home buyer or via a traditional sale is up to you! Read on for the benefits and disadvantages.
Selling To Cash Home Buyers
What are the benefits of selling your home directly to cash home buyers?
- Cash buyers offer a streamlined sale process. Buyers using cash to pay for a home do not need to wait for bank approval which can significantly reduce the closing time. If you want to sell your home quickly, save time by selling directly to a cash buyer!
- Cash buyers may forego inspection and appraisal. Cash buyers are looking to buy your house AS-IS meaning you don’t need to worry about putting in the time, money, and effort renovating or repairing before you move.
- Cash buyers may offer to pay closing costs and decline commissions. This fact alone can save buyers 5-8% of the house's sale price. Additionally, cash buyers may offer to pay closing costs to make their offer more attractive and speed up the closing process.
What are the disadvantages of selling your home directly to cash home buyers?
- The price offered may be slightly lower. The tradeoff for a streamlined sale covered closing costs and commissions, and a foregone inspection and appraisal might be a somewhat lower price.
- You may need to negotiate on your own. In a traditional sale, a realtor handles the price and contingency negotiations. However, in a cash sale, you will be responsible for price negotiations.
Selling Via Traditional Home Sales
What are the benefits of selling your home to a traditional buyer?
- Rely on a realtor for price negotiations. In a traditional home sale, you have the experience of a realtor on your side for negotiations.
- You may sell at a higher price. With renovations and repairs complete, your home might command a higher price during a sale.
What are the disadvantages of selling your home to a traditional buyer?
- You must meet buyer requests. You’ll need to ensure your home and any other dwellings on the property are up to code. You will also need to make any fixes the buyer requests as part of the sale.
- You may need to remodel. If you’ve lived in your home for many years, it may not do well in today’s market without an upgrade or remodel. You’ll be required to fund any upgrades up-front.
- Closing times may be lengthy. A traditional closing often takes much longer than closing on a cash home purchase. A lender will need to review the buyer’s financial documents and make a decision before the closing can begin.
- The seller will be responsible for closing costs. In a traditional sale, both the buyer and the seller pay some closing costs unless stated in an alternative agreement.
There are loads of benefits offered to those looking to sell their home to a cash buyer. Cash buyers offer sellers financial peace of mind, a speedy-quick closing process, and less paperwork. Pre-sale remodels and repairs can be costly. Additionally, the ROI of those upgrades is nearly impossible to determine. The ease of a cash sale is tough to beat.
Feel free to leave comments, opinions, and feedback regarding cash buyers and traditional home sales.
