Ever see signs and people marketing “We Buy Houses for Cash?”
To some individuals it may be irrelevant, but to others who are headed towards the foreclosure of their home, this may be the ideal deal. Let’s break down the benefits and the disadvantages to doing so:
The benefits include a fast sale (around seven days) without hassle since these buyers are likely going to proceed with a rehab and/or a quick sale. Furthermore, sales don’t require rehabs as most cash buyer buy it “as is.” In addition, cash provides certainty that you would not otherwise get with a normal sale.
The disadvantages include having to sell at a lower value than market-price. Cash buyer typically offer 60-90% of the market-value price. For instance, if your home is marked by the Appraiser at $200,000 you might get an offer of $140,000. Moreover, it is important to be cautious of some cash buyers who may leave you hanging.
Ultimately the decision to sell to a cash buyer comes down to your individual circumstance, do you trust the buyer? Are you need for a fast sale? Perhaps you’re relocating, you’re behind on payments, you’re headed to a foreclosure, you don’t want to deal with broker and realtor fees, you inherited the home, you are dealing with permit violations or any other reason. It depends on your own cost-benefit analysis if the situation is right for you.