The United States has a housing shortage of about three million homes. Delays in the supply of crucial materials occasioned by the pandemic have contributed to this shortfall. For you, this could be a golden opportunity.
Because of the high demand, selling houses quickly shouldn’t be a problem. And you’ll get to sell at a premium since the market forces favor you. However, you need to ask yourself which mode of payment is the most suitable right now.
It will be in your best interest to prioritize buyers who place a cash offer on your house. Wondering why selling houses for cash is better? Here are some of the reasons.
1. Skipping the Appraisal Process
If a client offers to acquire your house using a mortgage, you’ll have to go through an appraisal process. Lenders value this process because it gives them insights into their buying property. The appraisal process allows lenders to reduce their financial risk when giving out mortgages.
An appraisal may not work in your favor for two reasons. First, the appraisal may value your property at a lower rate than what you wanted to sell it for. The chances of the sale not going through are high if you reject the lender’s valuation.
Second, this process is time-consuming. It will inconvenience you when you need quick money from selling your property. Selling houses for cash eliminates these obstacles.
2. The Risk Is Low
“Which method of payment should I accept if I sell my house now?” Many homeowners ask themselves this question, and the answer is simple. Go for the payment method that has fewer risks.
The traditional financing models are risky in this sense. It takes longer to close the deal, and there’s no guarantee that you’ll agree even after the lengthy negotiations. Further, you might receive the payments in installments, which is undesirable.
Cash offers, on the other hand, are straightforward. Once you settle on a price with the potential buyer, the process is almost complete. All that remains is receiving the actual payment.
A serious buyer will honor the payment terms in a matter of time.
3. Save on House Repairs and Renovations Costs
A buyer who plans to finance the purchase process by taking out a mortgage must inspect your property. In almost all cases, the lending institutions use the services of a professional inspection team for this process.
As much as you try to renovate the home before you sell it, the team will find some damage that you didn’t even know existed.
The inspection process has an impact on your home’s value. The more the damages present, the more the price of your home goes down. You may need to incur extra renovation expenses to get a fair house price.
In a cash sale arrangement, you sell the house as-is. This method enables you to transfer the buyer’s burden of carrying out repairs.
4. No Need for Marketing When You Have a Cash Offer on Your House
You don’t need to list your property with real estate agencies if you want a cash offer on your house. Listing your property forces you to dig deeper into your pockets to cover the advertising costs. It’s also an inconvenience, especially if you have a busy life because you’ll need to keep up with the messages from the listing company.
The only thing you need to do when selling your house in cash is to scout for buyers. You can find them easily by relaying the message to your network. You could also partner up with intelligent real estate guys to assist you in finding a suitable client.
5. Less Stressful
Cash sales are less stressful because they eliminate so many unnecessary processes. The stages present in traditional financing –inspections, appraisals, renovations, listings – are all demanding and time-intensive. To make it worse, there’s no guarantee of closing the deal even after going through these stages in traditional financing.
All you have to do is find a potential buyer in a cash sale. Then you agree on the terms that are amicable to all parties. After that, the deal is sealed.
6. Minimal Paperwork
Reading through mountains of paperwork is tiresome and boring. But you have to; otherwise, you risk selling your property for a song. You can retain a lawyer to help you go through the paperwork if you have extra cash to spend.
Cash buyers relieve you of this burden by handling the closing and paperwork on your behalf. Note that this only works with cash buyers who have a solid reputation. Conduct due diligence on your buyers to confirm if they offer this service.
7. Cut off the Middle Man
In most cash sales, you’ll be in direct contact with the buyer. The direct contact translates into cost savings since you won’t have to pay commissions to real estate agencies. Do not underestimate the sum that this method of payment can save you.
Real estate companies can charge up to double-digit percentages of your final sale price as their commission fee. You’d barely make any profit from this arrangement if you sell your house at a price closer to its actual value.
Do not allow buyers to take advantage of you too. Some of them may insert hidden costs into the contract agreement. Be sure to understand everything in that contract before committing to it.
8. The Closing Process Is Faster
The formalities present in traditional financing processes such as mortgages lengthen the closing process. For instance, it can take up to two months before a lender underwrites your mortgage. A cash sale doesn’t have most of these formalities; hence it takes a shorter period to finalize.
Sell Your House Faster
Take advantage of the high demand for homes by putting your house up for sale. To get the most out of the deal, request a cash offer on your house. This payment method is less risky and fast, and it doesn’t require a lot of paperwork.
You may have higher returns when you sell your house in cash than other traditional financing models. Browse through the website to discover more articles like this one.
