7 Pros and Cons of Selling to a Cash Home Buyer
Why Consider Selling to a Cash Home Buyer?
There are many reasons why you may want to sell your house fast for cash: job relocation, fire damage, growing family, medical issues, or a pending divorce. Life is full of changes, and sometimes those changes happen suddenly. So what should you do when you want to sell your house fast for cash?
Let’s Start by Looking at the Pros of Selling Your Home to a Cash Home Buyer!
1. It’s Quick
To sell your home using traditional methods, you will typically need to declutter, paint, clean, stage, and upgrade the home before putting the home up for sale. This work takes time and money, and even after the work is completed a conventional home sale takes around 65-70 days to complete. When you sell to a fast cash home buyer, they will buy the home as-is. No repairs, upgrades, cleaning, or improvements are required, saving you time and money. You also do not wait weeks or months for an offer. You can get an offer in 1 day and close in 10 days or less.
If you want to sell your house fast for cash, selling to a cash home buyer can save you time and money.
2. No Appraisals
When you sell your home to a traditional buyer, they generally require the home to be appraised for a value that is equal to or greater than the purchase price. If the appraised value of the home is lower than the purchase price, the buyer can cancel the contract, leaving you right back where you started. When you sell your Dallas Fort Worth house to a cash home buyer, an appraisal is not required. Selling for cash eliminates the time and risk involved with appraisals.
3. No Repairs, Cleaning, or Improvements
Let’s face it, with our busy lifestyles we barely have time to relax for a few minutes, let alone repair and renovate a house. The typical buyer is looking for a home that is in excellent move-in condition, they will not buy a home that is a renovation project. Cash home buyers are different, they buy homes regardless of condition and love fixer-uppers. Forget the cleaning and repairs, you can sell your home fast in as-is condition.
4. Comfort, Convenience, and Ease
One of the major benefits of selling your home to an all-cash home buyer is the comfort, convenience, and ease of the sales process. The sales process is quite simple, you answer 4 simple questions, a few hours later you get a cash offer, sign the contract, a quick inspection is conducted, and then the closing. All of this is can be done from the comfort of your favorite chair, without open houses, and the home can be sold and closed in 10 days or less. What could be simpler and easier?
5. No High Fees or Commissions
Have you ever calculated the average commission you will pay a real estate agent? The typical fee is 6 percent of your home’s sale price. Unfortunately, the fee is not based upon the agent’s performance, you will pay the same fee if your home sells in 4 weeks or 4 months. Ouch!
When you sell to a fast cash home buyer, there are zero commissions or high fees. If your home is worth $250,000, you can save up to $15,000 in commissions alone.
6. No Loan Approval
In a typical home sale, the buyer must be approved for a loan. While you are packing and preparing to move, the buyer’s lender is processing the loan which usually takes 3 to 6 weeks to complete. So days before you think you will be closing and moving, you can be notified by the buyer’s lender that the loan was denied and the contract is being canceled, along with your move.
This is never a problem when you sell your home to a cash home buyer.
7. Move Out When You’re Ready
When you sell to a typical home buyer, the buyer’s family will expect to move into their newly purchased home immediately. The cash for house buyer is purchasing the home as an investment, not as a personal residence, which allows them to be flexible on when you move out. And some cash home buyers offer leaseback programs that will allow the seller to remain living in the home indefinitely.
This way, you can get the cash you need to pay off your debts, settle a divorce, or just enjoy retirement but remain living in the home you love.
Now Let’s Take a Look at the Cons of Selling to a Cash Home Buyer.
While selling your home for fast cash can be very appealing and offers many advantages, there are some potential cons that you should take into consideration.
1. Potential Lower Sales Price
One of the most obvious drawbacks of selling your home as-is for fast cash is the potential of not getting the most money possible for your home. When you spend the time and money to repair, improve, stage, and market the home, you will most likely achieve the highest price. But getting the highest price takes time, money, and effort. Only you can decide if it is worth that effort, and if you need to sell fast this may not be an option.
To eliminate this risk and ensure you sell your home for the highest cash price, we recommend you get at least three offers from local cash home buyers. Then do the math to compare the highest cash offer to what you can reasonably expect to sell the home for using the traditional method. When doing the math, be sure to subtract from the traditional sales price all of your closing costs and additional expenses, including repairs, staging, and realtor commissions. When you are done crunching the numbers, you can look at the net amount of cash you will receive. This way you can be confident that you made the right decision.
2. Standard Contracts
When you sell through a licensed real estate agent and list your home on the MLS, the agents are required by state regulations to use standard contract forms designed to be consumer-friendly. Every offer submitted to the seller by a real estate agent will be on the same forms, making it easy to review and compare different offers. A direct cash home buyer is not required to use the standard forms, and many have created custom contracts that are filled with legalese.
To avoid this pitfall, you should only request offers from cash home buyers that are managed by a Texas licensed real estate professional and use the state standard mandated contract forms.
3. No Representation
When you sell your home as-is for fast cash, you are essentially selling your home by owner without the benefit of a representation and guidance by a real estate agent. This can be intimidating for some homeowners and why you need to deal with legitimate companies.
It is recommended that you only work with companies that have been in business for at least 5 years, and preferably 10 or more.
4. Buyer is Not Licensed
Some cash home buyers are individuals, others are corporations, but they all have one thing in common. As direct buyers and investors, they are only representing themselves and are not regulated or licensed by the state. That does not mean that they are all the same, some are managed by state-licensed real estate agents or brokers and are subject to fingerprinting, background checks, state licensing rules, and regulations.
Before you request a fast cash offer on your home, we advise you to ask about the companies credentials and request offers only from cash buyers that are operated by licensed professionals.
5. Potential Scammers
Every industry has some bad actors, and the cash home buying business is no exception. These are usually fast talking salespeople that post the “We Buy Houses for Fast Cash” signs on the street corners. With a little due diligence and a few good questions, you should be able to quickly identify the scammers from the legitimate cash home buyers.
Here are a few questions you can ask:
- Are they BBB accredited?
- How long have you been in business?
- Is the company managed by a state licensed real estate professional?
Then do a little research to verify the answers!
6. Out of State Buyers
In recent years, many cash home buying companies have sprung up in California and other far-flung regions. These companies have regional representatives that work with local sellers, but they have no authority and all decisions are made by faceless out-of-state corporate executives. If you run into any issues or problems, it will be hard to almost impossible to speak with someone in authority.
If you would like to avoid this potential problem, request cash offers only from local North Texas-based companies who have decision-makers readily available to meet with you and address all of your concerns.
7. Pressure to Sell
When you sell your home using traditional methods, you have days and weeks to consider offers with little pressure to accept an offer immediately. When you request an offer from an all-cash home buyer, you will typically get an offer in 1 day and many of the cash buyers will pressure you to accept the offer immediately. Avoid this by getting multiple offers from legitimate cash home buyers that do not use high-pressure sales tactics.
If you have the time, money, and patience selling the home the traditional way might yield a higher sales price but the gain may not be offset by high commissions and fees. If the home is in good condition and located in a good area, selling the traditional way might be the better option, but you will need patience as the process can take weeks and many times, months.
If you want to sell your house as-is for fast cash, selling to a legitimate local cash home buyer will be your best option. Remember to ask the right questions, verify the answers, get multiple offers, and look at the available options, like a long or short-term leaseback.
Do You Want to Sell Your Home for the Highest Cash Price?
If you have a house in Dallas Fort Worth area that you are interested in selling fast for the highest cash price, then we invite you to visit OutFactors.com or call 800-420-7030 for an immediate offer. At OutFactors, we offer some of the highest cash prices without the pressure. Take your time and decide when you are ready – we will be here when you need us!
OutFactors is a local Dallas Texas-based company that has been in business since 2001. We are proud to be managed by a Texas licensed real estate professional and are BBB accredited with an A+ rating. We are the fast cash home buyers you can trust and we put everything in writing using Texas standard contract forms. Want to sell but stay living in the home you love, then ask about our Sell and Stay Program.
Get a Fast & Free HIGHEST Cash Offer from OutFactors Today!
One of the biggest benefits of selling your home to OutFactors is how simple and fast it is to get the cash you need when you need it. We take care of the problems, you get the cash. For additional information please visit OutFactors.com and if you are ready to get your free no-obligation offer please click here. The people at OutFactors are super easy to talk to and will answer all of your questions.
We hope this article was informative and helpful. If you have any questions or would like additional information, we invite you to contact us at OutFactors.com or watch some of our 2 minute explainer videos that provide information about our cash home buying programs.
7 Pros and Cons of Selling to a Cash Home Buyer | OutFactors — Dallas Fort Worth, Texas