It wasn't long ago that selling your house for cash was linked with a run-down or repossessed property whose value had plunged as an investor swooped in to snag it at a low price.
Cash sales have grown outside the distressed house market as sellers profit from new technology, fast sale platforms, and a competitive housing market that has raised the number of cash bids.
Going with a cash offer because it's reasonably straightforward isn't uncommon any longer, and in some regions, some cash purchasers are coming closer to market value than usual.
Cash is Saturating the Housing Market in 2022
"In today's competitive market, cash acquisitions for all sorts of properties are becoming increasingly prevalent," says Eric Hughes, founder and CEO of Rental Income Advisors, which teaches prospective investors how to acquire and manage lucrative rental properties. Paying in cash is a method for buyers with the resources to have a leg up on competing bids because sellers will almost always prefer a cash offer to a comparable financed offer and will occasionally even prefer it to a higher financed offer.
Reasons to Sell Your House for Cash
So, while the number of purchasers with cash on hand is increasing, the bulk of buyers still need to acquire financing before buying a home. If the following benefits are significant to you, waiting for a cash buyer may be worthwhile:
You’re in a hurry
One of the most frequently mentioned benefits of selling for cash is that it generally closes faster – in as little as seven to ten days, compared to an average of 50 days for a financing transaction. This might be a tremendous help to a seller approaching foreclosure or who needs money to close on their next home soon. According to Owen Dashner, a partner at Red Ladder Property Solutions, apart from the time it takes to underwrite and complete a mortgage application, one of the significant time savings with a cash transaction is the absence of the appraisal stage.
You want the certainty of the deal closing
The danger of a delayed or canceled settlement increases when a buyer adds contingencies to a real estate contract. A cash buyer won't employ financing, appraisal, or house sale contingency, and many cash purchasers will merely examine the property for information. A cash buyer often does their inspection, is unconcerned with lenders, appraisals, or the sale of another property, and is frequently ready to close as soon as the title is clear.
You’re overwhelmed with prep work
When selling a home on the open market, sellers are often required to execute a flurry of duties to get the house ready for showings. On average, sellers spend $5,500 on standard pre-listing preparations, although this figure might be greater if your home requires extensive renovation. Cash buyers often look for houses that need work, and typical homebuyers don’t want a project. If your house needs updating or a lot of repairs, a cash buyer will be your best friend.
You need quick access to cash
If you're having trouble paying your mortgage or are on the verge of losing your home, an all-cash offer might help you get out of a bind and start over. Financial purchasers are significantly less likely than bids with specific forms of financing to include requests for seller assistance with closing expenses, which can boost the seller's cash situation.
Bottomline
If you are someone who, whatever the circumstances, does not want the hassle of selling a house the traditional way and dealing with the hassles of prepping the house for sale, the marketing involved, the inspections required, the various types of financing that may or may not work for the buyer, and all of the other details that come with the home selling process.
If speed, convenience, and certainty are important to you, selling your home for cash may be the best option. Still on the fence? Ash Creek is here for you to offer an all-cash offer for your home. Close and move out on the date of your choosing. Contact us today.