Check This Out Before You Sell Your House for Cash!

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Nobody ever said that selling your home was an easy process. Nowadays, during the COVID-19 pandemic, when people are going out of their way to avoid in person interactions, having to go through the home selling process is even more burdensome. This added weight can make companies who offer to buy your home for cash just that much more appealing. However, even though they are quite obviously a more easy option, they aren’t always the best for your own situation. Before making any sort of monumental real estate decision, do your research. Here are some tips to check out before you sell your house for cash. 

What Cash Options are There?

You’ve probably seen at least one or two house for cash sites while browsing the internet. In a nutshell, there are three different types of cash buyers within the market. The first include buy-and-hold investors. These companies or individuals purchase homes with the purpose of renting them out. They’ll purchase quite a few homes, usually ones that don’t require too much fixing, and use them to profit off of renters. 

The second includes house flippers. These people will purchase homes, usually at a lower price and a lower value, and fully renovate them. Then, they’ll sell the house to make a profit. The third, and more new to the industry, are iBuyers.

iBuyers will use technology to locate and purchase a wide range of homes on the market and sell them using their own technology. These guys will take out all of the legwork and offer a fair price for the home, while also charging the seller a percentage fee and also for any repairs made. 

What are the Benefits? 

The biggest benefit to selling your home for cash is not having to go through the long and sometimes painful process of selling. This means no showings, stagings, open houses, or waiting for the buyer to be approved for a mortgage. It’s quick and painless. If your time is valuable, then this might be a good option for you to consider. 

Is it a Scam? 

Most cash buyers are 100% legitimate. However, where there is a way to make profit, there are people who are willing to cheat the system for easy money. Be careful with contracts and make sure to look into the company or people who you are working with. Read reviews, do your research, and triple check any contract you are given!

What are the Risks?

The biggest risk associated with selling your home to a cash buyer is that you’re not going to get the full value. Depending on your home as well as the investor you’re working with, you can get anywhere between 65%-94% of your home’s value. On the other hand, top real estate agents can sell your home for above value. Where your priorities lie will determine whether or not this risk is worth taking! Before making any moves, use a home value estimator to see how valuable your home is worth.
Selling your home for cash is a big decision. Weigh all of the pros and cons before jumping into this decision. For more expert financial advice regarding real estate and beyond, Click Star has you covered. Visit us again for more articles!