Are There Closing Costs On a Cash Sale?
If you are looking to sell your home quickly with as little hassle as possible, it may be that you are interested in selling to a cash property buyer. There are lots of interesting benefits from choosing a cash buyer over a more traditional option like selling through an estate agent.
For example, the process is quicker because you do not need to wait for interested parties to view your property and put in offers, you don’t need to deal with estate agents who are only interested in increasing their commission and profit on the sale of your property.
Then there are the time constraints that come with choosing to sell through an estate agent. It is not considered to be the quickest way to sell a property and depending on the current state of your local market at the time of listing your home for sale, you could be waiting weeks, even months. You may need to re-list your property several times before you actually find a suitable buyer.
When you do, you have all the closing costs to deal with too. Those can really ramp up the cost of the sale of your home.
Why You Might Choose a Cash Buyer Instead
With all the downsides outlined above, it’s not surprising that many people opt to sell their property to a cash buyer. It is quicker, results in cash being directly deposited into their bank account and does not involve dealing with estate agents, the housing market or timewaster buyers. It is also a lot cheaper.
Focusing on that last point, that using a cash property buyer is cheaper, does that mean then that there are no closing costs involved?
Before we answer the question, let’s clarify just what we mean by closing costs.
What Are Closing Costs?
Closing costs are any expenses generated during the process of selling your home above the price of the property. The closing costs can refer to valuation fees, solicitor fees, listing fees, marketing fees and estate agent commission and fees. Basically, any costs related to the selling of your property that need to be cleared for the sale to be complete.
That leads nicely to the question of whether or not there are any closing costs involved in a cash property sale.
Are There Closing Costs In a Cash Property Sale?
Although it would be easy to say that yes there are closing costs, because there are also closing costs when selling property, it’s not quite that straightforward. In most traditional property sales, it Is expected that the seller will pay many of them. However, if special agreements have been made between parties, it may be that some of the closing costs are covered by the buyer and some are covered by the seller.
You will generally find in property cash sales that the majority of the closing costs, if not all, are covered by the cash buyer. This makes it a much easier and more cost-effective option if you are looking to sell your property quickly and do not want to get stung by excessive marketing and listing, legal and administrative fees.