Should You Sell Your House To A Cash Home Buyer?

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If you own a house, you've probably been prompted to sell it. Cash home buyers may connect with you through postcards, text messaging, and more. And while you don't need to go through the first person who asks you to sell your home, you might be wondering if you should sell your home to a cash home buyer?

What Is a Cash Home Buyer?

A cash home buyer is a business that revolves around purchasing properties for cash. You might be thinking, "Doesn't every property sell for cash?" But this means that the company doesn't get a mortgage loan. They just produce the funds. Not having a mortgage loan has certain advantages; they don't have to go through inspections or appraisals and they can close almost immediately.

Is a Cash Home Buyer a Good Idea?

This depends on your property. Generally, a cash home buyer is going to offer a slightly lower-than-average rate for the home because it is a cash purchase. But many times, a cash purchase is the only option. If you're selling a house that wouldn't pass an inspection, for instance, a cash home buyer is going to be the only option. If your house is missing permits or if it's otherwise unlivable, a cash home buyer can still purchase it.

Why Do Cash Home Buyers Buy Distressed Homes?

Cash home buying companies usually have internal handymen, electricians, plumbers, and more. They can buy properties in cash that need work and then flip it for far less than the amount it would take for the average person to renovate or repair the property. Cash home buyers then turn around and either flip the home (sell it again) or rent it out (for steady income).

What Are the Downsides of Cash Home Buyers?

A cash home buyer may not always be willing to give you the fair market value of your home. Because they are flippers, they are going to sell your home again once they are done with it. They have to make a profit. But, by the same token, a cash home buyer could be your only option, especially if you don't have the money to repair the property yourself.

It's always worth it to entertain a cash home buyer and at least get a quote. You could be surprised regarding how much they're willing to give you. You won't need to negotiate and you won't need to pay a real estate agent, both of which can save you money in the long run. Reach out to a professional if you want to sell your home

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About Me

Weeding Through Houses After thinking long and hard about what to do with my living situation, I finally made the decision that it was time to buy a house. I was tired of living paycheck to paycheck because of rent, so I began working with professionals to guide me in the right financial direction. I was able to find a great company that offered exactly what I wanted to learn, and they walked me through the financial aspects of home ownership. Within a few short months, I was living in a gorgeous new home that I absolutely loved. Check out this blog for great advice on home ownership.