Cash buyers purchased 32% of all the homes sold in 2021. Some cash buyers are ordinary people who saved enough money to avoid getting loans, while others are real estate investors.
Selling your home to someone who makes an all cash offer is a great idea, right? Well, it definitely has some benefits, but it also has a few downsides.
You can do your due diligence before selling your home for cash by considering the pros and cons. Are you ready to learn them? If so, keep reading this article to discover the benefits and drawbacks of all cash offers.
Downsides of Accepting an All Cash Offer
Real estate investors pay cash for homes and use these houses to make money. For example, they might convert them into rental properties or fix and flip them.
As a result, real estate investors don't make 100% offers for houses. Instead, they'll offer a percentage of the home's value, and you might consider this a downside of selling to an all cash seller.
However, you'll still receive a fair offer for your house. You can ask for an offer to determine if it's a fair amount. You can always reject the offer if you think it's too low.
Secondly, cash offers generally close faster. Therefore, a downside of selling for cash is you might not have much time to pack your things and move out. This could be an issue if you don't have somewhere to move.
Benefits of All Cash Offers
While you can see the downsides to selling to an all cash buyer, there are way more benefits to consider.
First, a property sale to a cash buyer happens quickly. You won't have to wait long for the deal to go through. You'll be thankful for this if you need to sell quickly to avoid foreclosure or settle a divorce.
Additionally, you won't have to search for a buyer. The buyer comes to you and makes the offer. If you accept it, you can close within weeks.
Cash buyers generally opt out of some of the inspections and other services that others buyers need to meet their lender's requirements.
Secondly, you won't have to deal with contingencies. A cash real estate investor won't ask for repairs, updates, or changes. They generally purchase properties the way they are without including contingencies.
Finally, you won't have to worry about the deal falling through for financing issues. When buyers use mortgages to purchase homes, they rely on their lenders to approve the loans. However, lenders don't always approve loans.
If the buyer pays cash for the property, the deal can't fall through for financing issues.
Learn More About Your Home's Value
You can probably see that the benefits of accepting an all cash offer are greater than the drawbacks. So, you might decide to sell your house to a cash buyer.
You can learn more about your home's value by contacting us. We provide all cash offers in the Phoenix area and would love to hear from you.