Companies advertising the option to buy your home for cash in a quick sale are becoming more and more common, and the promise of selling your house for cash rather than going through the process of hiring an estate agent can sound promising. In reality, the amount you’ll actually receive for your house will be lower than what you’d get from a private sale, so the advantages and disadvantages need to be assessed.
Easily sell a house in disrepair
One of the key advantages of selling a house to a company like this is when you own a property that needs considerable work before it’s ready for a private sale. If the cost of fixing the house is out of budget, you may simply want to sell the house quickly and get the cash. If this is the case, then selling to a cash buyer is an excellent potential avenue to explore.
No estate agents
Because you’re selling to a direct company, there’s also no need to use an estate agent, which means avoiding these fees. The housing company you’re selling to will have people with this knowledge in house, and the estimates and dealings will all be done with the company you’re selling to rather than to a third party.
The main benefit of selling a house to a cash buyer is that it will take significantly less time than going through the traditional route. The buyer doesn’t need to get a loan, and there’s no chance of a buying chain. This is when a seller is also looking to move, so you need to wait for their house to be bought successfully before you can then buy their house. This can cause stress and can take months or even years. The main thing to look for is a trusted cash buyer like SoCal Home Buyers. Make sure to get a referral and look at their reviews before committing.
Disadvantages to be aware of
As mentioned, cash buyers will generally offer around 15% under the market value of your house if you were to sell with an estate agent. This means that if you were to sell traditionally, you’d make more money from the house, even with the added fees. The main thing to offset this is the speed of the sale. Selling through an estate agent will take time, while selling to a cash buyer can be done in a month. If the speed of sale is essential to you, this will be the main thing to consider.
Also, if you look desperate to sell your house (for instance, you’re at risk of foreclosure), a cash house-buying company may try to offer you as low as 50% of your house price, losing you a considerable amount of money.
Finally, if you’re trying to sell a house that needs work, an estate agent will often give you advice on what you should fix to increase the sale of the house. As they are generally on a commission of the value of the house, it’s in their best interest to sell it for as much as possible. A cash buyer has no such incentive and generally wants the sale price to be as low as possible.