Selling a house has become a long and tiring exercise these days. It is also a costly proposition that requires time and effort on your part. There are situations in life when you decide to sell your house not out of choice but out of necessity as when you are facing a divorce, foreclosure, relocation on account of job, and poor financial condition. In such situations, time is of essence and you also do not have the luxury of cash to spend on repairs and other closing costs. Most people think of selling their homes to cash rich investors in these times. These buyers are investors who flip homes and later sell for a profit. Here are some important pros and cons of selling your home to cash home buyers.
Get money quickly in your account
This is the biggest advantage of selling your house to cash rich investor is that you will get money in your account within a matter of few days. As these investors are flush with funds, they do not have to wait for finance form a lender and they are ready with the necessary cash to pay for the purchase of your house. This means selling your house to an investor is best when you are in dire need of money and that too quickly.
No need to undertake costly repairs
When you hire a realtor, he will ask you to carry out certain home improvements to make your house desirable for potential buyers. These repairs can be costly and time consuming. When you are short on money, it is prudent to sell your house to an investor as he buys your house in as is condition without asking for any kind of repairs.
No worries of commission of the realtor
Investors buy homes form owners directly and there is no third party involved in these transactions. This means you do not have to pay the fat commission of 5-6% of the total value of your house to a realtor.
All legal formalities completed by investor
Selling your house to a cash home buyer is smooth and easy. He undertakes the responsibility of fulfilling all legal formalities and paperwork to make the process smooth and hassle free for you. It is as easy as saying yes and the sale gets completed by the real estate investor.
Cons of selling to cash house buyer
They pay less than market value of your home
Investors are not doing any charity by buying your home. They are doing it purely for their business as they intend to sell the house later at a higher price. They typically pay 65-70% of the fair market value of properties as they know they must spend a lot of money on repairs before selling.
Beware of real estate scams
Not all cash home buyers are legitimate, and many homeowners are duped by investors by making tall claims of a quick closing. You need to do your research about the company before making any deal. Move ahead only if the company is licensed and has paid fair amount of money to owners earlier.
In the end, decision to sell your house to a cash house buyer is really yours. Are you ready to leave money on the table just to get it quickly? It all depends upon the life situation that you are in. If you are cash strapped and it is not possible for you to undertake repairs, it is better to sell the house to an investor. Similarly, if the house is jointly in the name of you and your spouse and you are taking a divorce, it is better to sell it quickly and split the proceeds of the sale amicably.