More and more people are selling their homes to a cash buyer because it’s fast and easy. But a cash offer is usually lower than the sales price would be on the open market. You may be wondering how you can come out ahead in a cash sale and whether it’s worth it.
Save in Preparation
In listing your home on the market, you first need to fix it and clean it up. To attract top dollar, your home must be in excellent condition outside and in. This can require a cash outlay of several thousand dollars and could take weeks to complete.
None of this is necessary with a cash sale. The cash buyers will take on the responsibility of any repairs or clean-up needed, and the cash offer they make reflects this.
Avoid Commission and Fees
With a traditional sale, the commission and any closing costs are deducted from the proceeds of the sale. Commissions vary from place to place but can run as high as 6% of the sale. That means on an offer of $100,000, you could receive less than $94,000.
By contrast, when you sell your home to a cash buyer, you’ll pay no commission and no other fees. If you are offered $100,000 for your house, that’s how much you will receive at closing.
Get Cash Quickly
While you wait the average 3 to 6 months for a traditional home sales transaction to complete, you still have to pay the usual costs of owning the home. That can include mortgage payments, taxes, insurance, and utilities. If it takes $3,000 per month to maintain your home, multiply that by however many months you are waiting to get your home sold.
With a cash buying process, there’s no waiting or ongoing costs. You receive an offer in 24 hours, and you can have cash for your home within a week or so. The speed of a cash sale can save you thousands of dollars.
A quick closing with no repairs to make or commission to pay can make a cash sale financially comparable to a traditional sale. Total up all the costs of listing your home on the market, and you may decide that a cash sale can be worth it.
Still have questions about selling your home for cash? Click here to compare a traditional to a cash sale.