House sellers have to grapple with a lot before they finally sell the house. Everything from the prepping, cleaning, and the dreaded home inspection must be perfect. If you still can’t find a viable buyer despite your best efforts, maybe you should consider accepting a cash offer on your house.
Accepting a cash offer doesn’t mean a potential house buyer will show up with a briefcase full of cash to the bargaining table. Instead, it means that the house buyer will meet the full cost of the house without external financing like a mortgage. Cash offers are possible when the house buyer has enough funds to purchase the house, even on the spot.
In today’s post, we’ll be highlighting a couple of benefits of accepting a house on a cash offer.
1. You Close the Deal Faster
Everything is much faster with cash sales, starting from the initial negotiation all the way to the final closing. Traditional sales are slower primarily because of the mortgage lending process, which mostly takes a month or two.
A mortgage lender must first assess a borrower’s financial situation before approving the mortgage in a process known as underwriting. This process takes a couple of weeks, and a lot can happen in between that will further delay the closing.
If you’re looking to sell your house as soon as possible, consider accepting cash offers on your house to speed up the house selling process.
2. Reduced Risk
Sales from traditional financing are a lot riskier than cash sales. That’s because traditional sales involve a lot of players like the lender, underwriter, et cetera. Should anything go wrong with any of the involved parties, the whole deal could crash and burn.
On the other hand, a cash offer involves less risk because the potential buyer already has the cash at hand. All you need to do is settle on a fair house price that works for both of you, and it’s a done deal.
3. No Need for Appraisals
An appraisal is like underwriting because it’s a financial assessment of the borrower by the mortgage lender to ensure the former can repay the loan. An appraisal is unnecessary for cash offers because the potential buyers can pay outright cash without outside funding.
Appraisals not only take time to conclude, but the results are uncertain. If the appraisals are too low, some lenders may be unwilling to finance the mortgage. This stops the house buying process dead in its tracks.
4. No Spending on Repairs
With traditional sales, you’ll have to spend a bundle on repairs following the house inspection. As the house seller, you’ll have to make any necessary house repairs which may be costly. The only other viable alternative is to lower the house price, which isn’t what you want.
With cash sales, the house buyer buys the house in the condition it is. The house buyer can make any repairs after you transfer ownership.
5. Cash Sales Are Less Stressful
With traditional house sales, there’s a lot of prepping, cleaning, staging the house, repairing, and inspecting you have to do before you can get a serious buyer. This can be extremely stressful, especially if you don’t have the money to do everything. Apart from all that, you have to worry about the deal falling through after all your efforts.
With a cash sale, you sell your house as-is, and you don’t have to worry about the home’s condition. You get your cash, you hand over the keys, and everyone walks away happy.
6. Move on Quickly
Cash offers allow you to move on much faster if you’re selling your home because of personal circumstances. You may be moving to your new job in another state or even trying to sidestep foreclosure. Regardless of your situation, a cash offer allows you to solve the problem at hand and move on with your life much faster than traditional sales.
7. Avoid the Home Inspection
House inspections send shivers down the spines of most house sellers, but with cash sales, you don’t have to sit go through them. House inspectors have a reputation of being strict and diligent, sometimes too diligent.
Listening to everything wrong with your house isn’t the most pleasurable experience, but it’s something you’ll have to go through a few times with traditional sales. By accepting a cash offer, you completely avoid home inspections, which mostly end with you having to pay for costly repairs.
8. Helps Avoid Excessive Negotiations
Haggling over house prices can be stressful because some house buyers just won’t budge. Traditional house buyers are very picky on house details in an attempt to run down the house price. Add a not-so-pleasant house inspection report, and you won’t have much say at the negotiating table.
With a cash sale, you’ll receive an offer from the potential house buyer, which you can accept or deny. If you accept the offer, the house is sold.
9. Less Paperwork
One characteristic of traditional house sales is piles on piles of paperwork. There’s a lot of documents you have to read, sign and create yourself. If you’re too busy with work or other activities, you might not have enough time to handle all the paperwork.
Good news: If you accept a house on a cash offer, you won’t have to deal with as much paperwork. If you find a reputable cash house buyer, you’ll barely have any paperwork to handle. Sell your house for cash and sidestep the paperwork.
10. No Need to Hire a Realtor
Realtors and real estate agents will demand on average about 6% commission on the house’s selling price. This 6% is what would’ve covered all the repairs you had to do before the house could go on sale.
Accepting a cash offer means you don’t have to hire a realtor and pay a hefty commission because you deal with the house buyer directly.
Accepting a Cash Offer Is Never a Bad Idea
Accepting a cash offer means less stress, more savings, and quick house sales. If you’re selling your house, don’t even think twice about accepting cash sales. With cash sales, everybody wins.
Contact us today if you’re looking to sell your house on a cash offer and at a fair house price.