Are you considering selling your house for cash? With the real estate market constantly changing (traditional home sales are down 16%) and more people opting to sell their homes quickly, taking a cash offer could present many advantages to homeowners.
But just what are the benefits of selling a house for cash? From having more control over timing and closing costs to avoiding certain inspections and repairs that typically accompany home sales, there are various benefits of getting a cash offer.
Sit tight as we explore these advantages in detail. By the end of this guide, you’ll be able to make an informed decision about whether or not a cash sale is right for you.
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What is a cash offer?
Selling a house can be stressful, but cash offers can make the process quick and simple. Buying with cash usually offers the seller some competitive advantages, such as fewer conditions for sale, faster closing times, and fewer costs associated with the transfer of ownership. It also eliminates the cash flow risk for the seller, as cash buyers are typically more reliable than those using financing.
How does it work? It varies a bit depending on who you’re working with. For example, at iBuyer, all you have to do is enter the property’s address and upload photos of the house. The more photos you upload, the better; this allows us to accurately estimate the home’s value based on the local real estate market.
By uploading your house information, you open yourself up to receive multiple offers from cash buyers, which saves you the hassle of dealing with banks or waiting for approval. Moreover, our buyers are cash-ready, and closing can take as little as two weeks, so you can get the money you need fast.
So, if you want to make a house sale quickly and hassle-free, why not consider selling your house for cash? If you’re still confused about how it works, then look at the three main ways a cash offer differs from a traditional home sale for sellers.
Rather than dealing with contingencies, cash sales offer fewer strings attached. There’s no mortgage contingency, so it doesn’t matter if the buyer needs to take out a loan.
A sale contingency, when you have to wait for the sale of your home to buy another one, can also be skipped entirely with cash sales. Of course, buyers may choose to include an inspection contingency still. After all, they want to ensure that what they invest their money in is worth it. However, in most cases, when working with iBuyers, this isn’t the case.
When selling your house for cash, there’s usually no home appraisal necessary. That’s because appraisals are typically lender-mandated. With no lender, no problem!
However, keep in mind that’s not always the case. If an investor is buying the place and looking for some assurance of return on their investment, they may still want to get an appraisal done. This can be beneficial in helping them make sure they’re getting what they paid for. At the end of the day, though, they’re usually unnecessary. Whew.
Instead of submitting paperwork, getting approvals from lenders, and jumping through complicated hoops, closing on a cash offer requires signing only the settlement statement, title, and deed.
A cashier’s check or wire transfer replaces loan documents for payment. While this saves time and stress, it also means fewer closing costs because no lender fees are involved. Once the paperwork is done and the money sent, all you have to do is hand over the keys to the house. It’s (usually) that simple.
Benefits of selling a house for cash
We get it. Selling a house is a complex process. It’s also a big decision. So, if you’re unsure whether a cash offer is best for you, here are a few of the biggest benefits of selling a house for cash. Keep in mind that these benefits are valid regardless of what state the real estate market is in.
1. Faster closing process
On average, it takes six to nine months to sell a house if you put it on the market and go the traditional route. Simply put, selling your home is a long, complicated process with lots of paperwork and decisions. Deciding to accept a cash offer expedites the closing process significantly, helping to ensure a quicker sale overall.
What makes the biggest difference here? Cash offers remove the need for mortgage applications and inspections, promising a more direct route between signing the contracts and transferring the title to the buyer. Plus, there’s no risk of getting caught up in lenders’ lengthy processing times or denials; it’s one less worry for you as you prepare for your next chapter.
2. Less risk
If you’re looking to sell a house, accepting a cash offer can be less risky than putting your home on the market for the traditional route. For one thing, it alleviates having to wait for a buyer since cash offers are typically faster to close (as mentioned above). This gives you more peace of mind.
Also, with cash offers in place, you don’t need to worry about meeting certain qualifications or profit management schemes required by loan programs. That’s a strong bonus if you want to avoid any issues as a seller. Ultimately, accepting a cash offer guarantees less risk and less headache. It’s a win-win all around.
Again, putting your home on the market is a massive hassle. Not only do you have to prepare your home properly for viewings, but you also have to take real estate photos, find a realtor, and deal with the hassle of waiting for offers to come in. To get rid of the hassle that comes with all of that, accepting a cash offer is often the easiest route for most sellers.
With cash offers, you don’t have to worry about mortgages, financing approvals, or contingencies like in traditional sales scenarios. This saves both time and stress in what is already an overwhelming process. Plus, you can be sure payment isn’t dependent on external sources like banks or lenders.
The bottom line? If you don’t have the time or mental capacity to put your house on the market, selling your house for cash is the easiest, least stressful way to go.
4. No marketing
By now, you know that putting your home on the market can be lengthy and time-consuming. But did you know it can also be somewhat expensive? Especially if you need to hire a realtor, pay extra for photos, or even stage the house, it can start to add up quickly.
However, accepting a cash offer from a seller can save you from this hassle. You don’t have to spend time or money marketing the home, making it a less expensive option.
It may not be the only option (we’ll explore different cash offers below). Because sure there are certainly advantages to taking offers from non-cash buyers. However, depending on the real estate market, inventory, and mortgage rates, you might pay much more to sell your home in marketing and realtor fees than it’s worth if you put it on the market.
5. No inspections or repairs
Does your home need repairs that could affect the traditional selling process? Perhaps you put your home on the market, and a seller needs an appraisal before closing the deal. This costs time and money, making the traditional home-selling process complex and confusing.
When you sell a house for cash, none of that is necessary!
With no waiting period, no escrow inspections, and no termite clearance needed, buyers can purchase the home exactly how it is. From a buyer’s perspective, this means that no one from a bank is competing with them for the highest offer.
For you as the seller, it means no one will come in after their accepted bid to report on any uncovered issues or costly repairs that need to be completed before closing. While this doesn’t mean you should hide damage or structural issues from potential cash buyers, it saves you the time, money, and hassle of waiting for appraisers and other inspectors.
Selling a home can be hard in any market, but it can seem almost impossible in a tough one. Thankfully, if convenience is what you’re after, accepting a cash offer is the best way to go. Going this route will eliminate most of the hassle of screening potential buyers and the lengthy closing process.
Plus, not having to worry about long-term mortgages or appraisals can take the stress off your shoulders. Overall, accepting a cash offer brings convenience and peace of mind that your house will get sold, and that’s what every home seller needs.
Who are cash offers best for?
Even though you might understand the benefits of selling a house for cash, how do you know if it’s right for you? Typically, you’ll find cash offers to be the ideal solution if you’re looking for either speed or convenience.
For example, cash offers can be a godsend for home sellers who need cash quickly. Whether you’re dealing with a family emergency, lack time to handle tricky paperwork, or have so much on your plate at work that you don’t have time to market and advertise your house properly, cash offers make it easy to sell.
The process only takes weeks rather than months compared to traditional methods. The bottom line? Cash offers are definitely the way to go if you need cash fast. Additionally, if you don’t have the emotional capacity to add selling a home to your to-do list, selling your house for cash is a great way to get rid of the property while still making good money from the sale.
How common are cash offers?
They’re probably a lot more common than you think. For example, in April 2021, cash offers accounted for 25% of all home sales. That’s compared to 15% of home sales the year before.
In general, cash offers are a lot more common in wild, unpredictable markets. They become even more popular in markets where sellers receive many competitive offers. So, as the real estate market continues to slow down and inventory decreases, you might notice cash offers decrease too.
However, regardless of the market, they will always be a great way to sell your house quickly and easily.
Types of cash offers
Cash offers for homes can vary greatly depending on the source. For example, there are cash offers from people who flip houses. You also have cash offers from iBuyer companies that connect cash buyers with sellers via online platforms.
Flippers typically buy homes at low prices, make certain improvements and upgrades, then flip them at a much higher price to turn a profit. In exchange, sellers like yourself get their money immediately with minimal effort and no waiting around.
When flip buyers search for potential purchases, they often look for homes that need renovation but have no major structural problems or issues. They also consider the ease of accessibility to the property and local amenities nearby.
On the other hand, you have investors in the iBuying market. These are large companies such as iBuyer and Offerpad that offer an all-cash purchase of a home and close the sale in as little as a week. Many sellers who use iBuyers find it attractive since they can skip out on commission fees, potentially speed up the selling process, and get closure quickly.
Get a cash offer
Are you sold on the benefits of selling a house for cash? Great! Now, it’s time to see how much your house is worth.
Our free home value estimator is here to help you estimate what your property is worth. In just a few easy steps, you’ll find out how much your home is worth so you can decide whether to proceed with getting a cash offer or not.
What are you waiting for? Check the value of your home now.