If you have recently sold a house or know how the process goes, you probably know that this is not a walk in the park. Many time- and money-consuming processes are involved, from getting the house ready for sale, landing a potential buyer, and completing the home buying process.
Although the seller will still get money for the house even if the buyer gets a mortgage loan or uses their savings, they prioritize buyers with cash.
Dive in to understand why sellers prefer cash buyers instead of buyers traditionally buying the house.
Reasons Why Home Sellers Prefer Cash Home Buyers
Most people against selling houses for cash discourage this process since one receives less cash than selling through other traditional methods.
Nevertheless, the amount you sacrifice when you sell to companies that buy houses in Arlington is worth the home selling hassles that you evade.
Other reasons why home sellers prefer cash buyers when selling their homes are:
Paying in Cash for Your House
More often than not, the main reason why anyone sells a house is to get money. This may be money that you intend to buy a new house with, start a new life, or clear a loan, among other reasons.
Although you will still get the money even if the buyer buys the house in installments, the money will be more helpful if you receive it all simultaneously.
Additionally, the house seller is likely to trust a buyer who has cash at hand more than one who intends to apply for a loan to pay for the house.
For such reasons, home sellers will look for buyers who are paying in cash for your house and handle the next project they intend to handle within a short time.
No Costs to Sell Your House
Although selling a home means that you are ready to pocket a significant chunk of money, you first incur charges. These charges are such as costs to get your home ready for sale, e.g., handling repairs, inspections, utilities, and landscaping, among others.
On the other hand, realtor commission fees account for about five to six percent of the overall home selling price. You also need to account for closing costs such as mortgage payoff, transfer taxes, property tax, and capital gain tax.
Each of these home selling costs significantly reduce the overall amount you receive from the sale of the house.
Thankfully, there are no costs to sell your house when you sell the house to a cash buyer. First, most cash buyers buy the house as-is. This means that you save renovation and repair costs.
Moreover, you do not need to hire a real estate agent when selling a house for cash. As a result, you end up with the six percent that you could have spent to pay the agent.
When selling to a cash buyer, there is no third party involved in your sale. For this reason, you eliminate almost all closing costs. Any home seller will thus settle for a cash buyer and pocket all these and other house selling costs.
No Loan Denial Risk
When a home seller lands a potential buyer, they have already done a lot to make the house appealing to potential buyers. For this reason, it gets frustrating to the seller when the buyer’s loan is disapproved since this means that they have to start the home selling process again.
For most sellers, working with a buyer who is not sure whether or not they will get a loan is too much of a risk. Therefore, they prefer a buyer who has the cash ready to avoid future frustrations since there is no loan denial risk.
Streamlining The Home Selling Process
In addition to setting aside some money, the home selling process has other hurdles that you need to jump.
For instance, you need to get your house ready for sale, devise and implement a marketing plan, prepare for private showings and open houses, negotiate the price and prepare for closing.
These and other processes involved when selling a home can give you sleepless nights. The good news is that selling a house for cash is streamlining the home selling process. As soon as you land a buyer, the process is as good as done.
This is because you do not have the market for the house to convince the buyer to buy it. Within a few days, you will have signed everything you need to, received cash for the house, and forgotten about this home selling process.
No Appraisal Fees
More often than not, if the buyer is not buying the house for cash, they rely on a mortgage lender. This lender may demand an appraisal to determine the home’s value and that it does not cost more than the amount the buyer is buying it for.
When the lender asks for this appraisal, it is the responsibility of the home seller to provide it. This means that you need to pay for an appraiser. Nevertheless, in a cash buyer, the buyer does not need to apply for a mortgage, meaning no appraisal fees.
You can base the value of your home on your assessment and use this when you intend to sell your house fast Watauga to sell the house to the cash buyer.
How to Get a Fair Cash Offer on Your Home in Texas
From the information above, it is safe to say that home sellers have a legit reason to prefer cash buyers over traditional buyers. If this is the way that you have decided to work with, your major task is to get a good cash offer for the house.
This is the kind that is neither too high to scare away potential clients nor too low that you end up with a loss.
Not sure of how to get a fair cash offer for your home in Texas? Read on.
Consider Prices of Recently Sold Houses
Supposing you have not sold a house in a while, you probably have no idea of the amount that a house like the one you are selling sells for. Therefore, it is wise to do your homework and consider how many similar houses were recently sold.
Ensure that the houses you compare with those in the same location and of the same size as the one you are selling.
Find out the prices of houses sold either to cash buyers or to buyers with mortgages since you will need this information to decide.
Since you do not have a real estate agent, this step is crucial to help give you an idea of the right cash price of your house, even if you are not an expert in real estate. It is also easier to avoid house-buying scams when you have an idea of recently sold houses.
Do Not Be Afraid of Negotiating
After the cash buyer sees your house, they will state the price they intend to buy this house. If this price is below your estimate, do not shy away from negotiating it. Explain to the buyer why you think their offer is too low and why they should offer you more.
You will most likely end up with less cash than what you deserve if you agree on the first-rate that the cash buyer offers you. Therefore, negotiate more and end up with a price that you are both comfortable with.
Prepare The House for Sale
Sure, most cash buyers are ready to buy your house as-is. However, as much as you are selling your house as-is, they are more likely to offer you based on the first impression they get of the house.
For this reason, you can make minor adjustments in the house before sending pictures or welcoming the buyer to see the house to make it more appealing to them.
For instance, clean the house and eliminate clutter, making the house appear smaller than it is. It is easier to negotiate for a higher offer if your house looked good at first sight than if everything in the house was messy.
Set Realistic Expectations
As much as you want to make the most out of this offer, setting your expectations too high ends up causing more harm than good. Therefore, ensure that the selling price you set for your house is not too high.
Additionally, do not expect too much from cash buyers, such as completing the house buying process in less than a day. Set realistic expectations and avoid frustrations such as lacking potential buyers.
As seen above, the process of selling a house for cash is way easier than selling the house to somebody who is applying for a mortgage. For this reason, do not feel afraid of joining these home sellers who prefer selling houses for cash when selling your house in Texas.
As long as you know how to negotiate a fair deal, you will be thankful that you chose a cash buyer over a traditional buyer.
Contact us for answers to questions about selling your cash buyers, and we shall help you get a fair cash deal.