Should you accept less money for your house?
Cash offers can be very appealing if you’re trying to sell your house quickly. If you’re approached by an “off-market” buyer, you’ll avoid staging and showing your house, paying real estate commission fees, and even making repairs. Even if a buyer submits a cash offer after you’ve listed your home, the closing process is quicker without the need for mortgage lender approval.
That makes cash offers a popular option. According to the National Association of Realtors, cash offers account for 16% of residential home purchases. But cash offers also come with some drawbacks. You’ll almost always get a lower price for your home if you accept a cash offer, and you’ll need to watch out for “we buy houses” scams
There are a few questions you should ask yourself before accepting a cash offer for your house.
Do I need to move quickly?
Marketing your home for sale can be time consuming and stressful, and some sellers simply don’t have the time to show their house to potential buyers and wait for the highest bid. When a buyer is applying for a mortgage loan more time is required for home inspection. Once you get an offer on a house, it takes an average of 47 days for a sale to close with traditional financing with a lender involved.
If a buyer’s financing falls through, you’ll have to restart the process of listing and showing your house. But with a cash sale, it may be possible to close in as little as one or two weeks. If you’ve accepted a job offer in another state or otherwise need to relocate in a hurry, finding a buyer who wants to pay cash could be the ideal solution for you. You’ll still need cash buyers to provide proof of funds to make sure the deal will not fall through.
If time is no object, on the other hand, you’ll probably get more money if you wait for a traditional offer on a house. Kelly Baca, Broker Associate for Coldwell Banker, said that cash sales tend to be lower in her experience, and reminded sellers that whether or not a buyer gets a loan, the money is cash for the seller at closing.
Another downside of a quick sale is that some cash buyers may rush you to move out before you’re ready. Others, on the other hand, will offer more flexibility. When you sell through Homeinc, you can close in as little as 10 days or take up to 60 days.
Am I strapped for cash?
You might be selling your home to downsize because you need money. If your savings account isn’t stocked, the costs of getting your home ready to sell can be an impossible burden. Here are some of the expenses you can expect to incur:
- Real estate agent fees, which can run up to 6% of your home’s sale price
- Major repairs, which can cost thousands
- Closing costs, which typically run between 1% and 3% of the sale price for sellers
- Home staging costs (home sellers spent a median of $1,500 on home staging services, according to Realtors surveyed in 2021 and larger homes that spend more on the market can cost even more to stage).
Should I take a cash offer on my house?
If you’re strapped for cash and looking to move fast, you should consider taking a cash offer for your house. Just make sure to go into the process with knowledge of your home’s market value and a fair offer price. Don’t accept less than you’re comfortable with, even if you’re desperate to get the sale over with. You don’t want to find out that you could have sold the house to another cash buyer for more cash.
Enjoy professional services from our qualified team of licensed realtors and a fair and competitive cash offer for your house. Call or text 888-850-2636 today to speak with a knowledgeable advisor of the Homeinc Team.
By: Sundae Team
