When selling a home for cash, you can get a deal done faster because the buyer isn’t subject to the mortgage approval and underwriting process that can take months to complete. That’s a huge benefit for sellers facing time constraints, whether due to a job transfer, a new baby, or an emergency.
However, selling to a cash buyer can also open you up to scams and predatory parties who recognize that a homeowner needs money quickly. They may take advantage by offering less than the property’s fair market value in exchange for a quicker sale. You may be able to avoid this by vetting buyers carefully and seeking guidance from real estate agents, attorneys, and appraisers.
Selling Your Home for Cash: What You Need to Know
Another disadvantage is that cash buyers often expect you to sell the property as-is without completing any repairs or renovations. This can be costly for homeowners who need to invest in maintenance before placing their homes on the market. However, reputable iBuyers and “we buy houses” companies will typically make an offer on the property in its current condition and will complete any needed inspections themselves.
Lastly, it’s important to understand that just because you’re selling your home to a cash buyer doesn’t mean that you’ll be exempt from paying closing costs and other transaction fees. Before accepting any offers, it’s a good idea to consult with real estate professionals and lawyers to ensure that you aren’t missing anything in the fine print of your sale contract.