Sometimes, a homeowner may need to sell a house fast.
Whether it’s due to a job relocation, financial emergency, or a looming foreclosure, selling a house quickly, especially in a buyer’s market, can seem impossible.
Unless you opt for a cash buyer, you’ll have to contend with the lengthy and frustrating home selling process—not to forget the headache of hiring solicitors and estate agents. No wonder many sellers opt for cash buyers to avoid the stress that comes with selling property.
However, like with anything, there are also drawbacks to selling a house for cash. In this article, we’ll explore the pros and cons of selling property to a cash buyer.
Cash Buyer Pros
Selling your home to a cash buyer does have its advantages. Here are the four reasons why you might want to consider selling your house for cash.
1. Quicker Sale
A quick house sale is probably the number one reason cash buyers are so desirable to those looking to sell their homes.
In fact, with a cash buyer, you can expect exchange of contracts within 24 hours of viewing the property and money in the bank within days of the initial contract.
Cash buyers are able to expedite the sales process because they don’t involve the lengthy process of securing a mortgage. Removing the lender from the equation can significantly reduce the time it takes to close the deal.
2. More Certainty
Over 10% of failed sales occur due to the inability of the buyer to secure a mortgage. Even if the buyer has been pre-approved for a mortgage, unforeseen circumstances could happen, forcing the lender not to honor the deal.
If the sale fails to go through, the seller has to look for a new buyer, starting off the stressful process again. However, with a cash buyer, the chances of the sale going through are higher since the buyer will have the money available when making the offer.
3. No Complicated House Chain
A sale may also fail to go through if a buyer changes their mind in the chain. This could be due to many reasons—from a change in taste to issues with the agent, house, etc. Selling to a cash buyer helps to do away with the dreaded property chain—thus eliminating the chances of the sail failing because of a third party.
Cash Buyer Cons
Selling your house to a cash buyer may seem like the perfect solution for those looking to sell their homes fast. However, this option does have its fair share of drawbacks. Here are the disadvantages of selling your home for cash.
1. Cash Offers are Often Less
This is a big one. If getting top dollar is one of your primary concerns, then selling to a cash buyer might not be the best route for you. Many of the “we buy houses for cash” companies will offer between 70 – 85% of the market value of your property.
2. Scams Can Happen
Let’s face it! It’s easier to pull off a scam with cash than with bank financing. If you’re selling to an investor, always make sure they are legitimate and accredited. Be sure to ask for proof of funds if you’re selling to an individual. For instance, you could ask for a bank statement.
There you go! The pros and cons of selling your house to a cash buyer. Selling your home for cash is a great idea, but it will not always be the best option.
For instance, if you need to sell your house fast to settle some life upheavals, opting for a cash buyer is your best option. But if you’re not in urgent need of cash, having it listed in the top property websites in the UK will earn you top dollar.