Before Selling Your House for Cash, You NEED to Read This!

By Staff Reporter - 11 May '21 10:37AM
  • Before Selling Your House for Cash, You NEED to Read This!
  • (Photo : Pexels)

Do you fancy yourself a highly-detailed, fastidious planner who has their lives laid out to the T? Planning may be in your blood but the reality is, no matter how hard you try to plan out your future, something will happen and those carefully laid out plans are moot. Something will come along, like a pandemic that throws the nation into chaos, and we're faced with situations that we've never dreamt of - like selling our homes when we don't really want to. 

HomeLight's Q1 survey for 2021 shows us that it's very much a seller's market and 94% of agents say they're even seeing bidding wars break out because inventory is that low. But, the process of selling your house could take up to 56 days - time that you may not have.

One option you may be toying with is selling your home for cash. However, before you contact the firsts home buying company you come across, there are some things you need to know.

1. No need for repairs or upgrades

Typically when you're selling your house, your real estate agent will give you advice on how to improve your home's value so you can get as much money as possible. This means you'll want to repaint your walls, make necessary repairs that you've been putting off, and maybe even upgrade fixtures, flooring, and appliances. In other words, you may need to pour more money into your house if you want to sell it. 

But, that's not the case when you're going to sell it for cash. Home-buying companies will purchase your home and you won't have to spruce it up in order to do so. Most of these companies will buy your house as-is. If repairs are needed, the company may charge you for those repairs or reduce the offer price.

2. Contingencies be gone

Real estate contracts will have contingencies in place to protect the buyer. These contingencies will give the buyer a chance to back out of the contract without any penalties. 

Common contingencies you'll find in a real estate contract include: 

  • Home inspection failure

  • Trouble securing financing

  • Home appraisal is lower than the asking price

  • Title problems

  • The sale relies on the buyer selling their home first

When you're selling for cash you're less likely to encounter these types of contingencies and your sale is almost guaranteed.

3. No need to worry about financial hiccups

In a traditional sale, the deal could fall through if the buyer is unable to secure financing. However, companies that are buying in cash will have the funds on hand and are ready to go.

4. Quicker (and easier) sales

There's a lot that needs to take place when you're selling your home - hiring an agent, sprucing up the home, waiting for a suitable offer, accepting the offer, and so on. This can take a long time! But if you're going with a cash sale, the process can take as little as one week from the moment you contact the company. 

5. Scams do exist, so be careful

The possibility of getting scammed with one of these companies isn't a big problem, but it is something you need to be wary of. People are always going to look for people they can exploit and in most cases, they'll target folks who are desperate and out of options. 

If you're going to go with one of these homes for cash companies, you need to do your due diligence. You need to look at reviews from people who have used them. You need to make sure they are reputable and they are on the up and up. If the company you contact asks for money upfront, that is a strong indicator that they are scammers, do not do business with them!

Homes for cash companies can be a viable option

If you're in a position where you need to sell your house quickly, either because of a new job elsewhere or you're on the brink of financial ruin because of the pandemic, a home for cash company may be a great option for you. But, if you don't have to move right away, you should hire an agent to help get your house sold. 

Across the country, 91% of real estate agents say inventory is lower than expected and with low mortgage rates, buyers are out in full force. You could receive multiple offers on the same day your house goes on the market! The truth of the matter is, we never know what the future holds and if you need to get out of your house like, yesterday, be sure to do your research and find a home buying company that won't screw you over.

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