Should I Sell My Property to a Cash Home Buyer?
There are only a few things in life that are more stressful than selling property. As we; as being expensive, it can also be time consuming, particularly if you choose to do things the more conventional way – using a real estate agent. However, if you are interested in the alternatives and have Googled questions like “can I sell my house fast for cash?”, you will know that there are companies out there that will actually do that – buy your property for cash.
Just because they do exist, does that mean you should use their services? Not necessarily. As with most things in life, there are both pros and cons to choosing to get fast cash for your house through one of these companies. Therefore, before you decide whether it is right for you to sell your property to cash house buyers, it’s worth considering these pros and cons. To help you see the bigger picture we have highlighted some of these in this post.
Before we dig deep, let’s explain for anyone that is unfamiliar with the term, what cash house buyers are.
What Are Cash House Buyers?
The name is actually very self-explanatory – cash house buyers are often individuals, though mostly they are companies, that have the available funds to buy a property a for a cash value without the need for credit, loans, or a mortgage.
Pros and Cons of Selling to a Cash Buyer
Now we’ve covered the basics, we’re going to look at the pros and cons of selling your property to a cash buyer, starting with the pros.
As we noted at the outset, a cash buyer is a great option if you have been Googling “how to sell my house fast”. The funds are generally released much quicker when the buyer is using cash and often the deal can be completed in just a few weeks, rather than months. This is ideal if you are in a position where a quick sale is necessary because you need to move quickly or need access to the funds from the sale quicker. Because it’s handled faster, there is less chance of the deal falling through.
No Complex and Convoluted House Chain
In England and Wales, one of the most common reasons why sales for property fall through is because someone somewhere in the chain changes their mind. This can be avoided by selling to a cash buying company or individual because no one else is involved in the process.
Now for some of the downsides.
Cash Offers Are Generally Less
Perhaps the biggest downside of opting to sell your home for cash is that the sale price will generally be less than the asking price. Although many of the buyers who will be interested in paying cash for the property will be those looking to move in and use it, some will be companies like Cash Home, who will be looking to sell it on. As part of the arrangement for paying the full amount upfront, there is often a reduction in the final price.
Cash Sales Sometimes Fall Through
Although they are less complicated, and it is less likely, there is still a chance that a cash sale on property will fall through. This is more of an issue, though, if you choose to deal with an individual who is looking to move in and live there rather than a company.
So, Should You Sell Your Property to a Cash Buyer?
With regards to the question raised in the heading of our post of whether or not you should sell your property to a cash buyer, the answer is, it depends. It depends on a number of things. Are you in a hurry to sell, for example, and are not concerned about any losses you may incur from not going through a real estate agent? A cash buyer for your home is a great option and will suit you. If you have put a lot of time, blood, sweat, tears, and money into your property, and are in no rush, on the other hand, you may want to go the more traditional route. You need to think carefully about what’s best for you, in terms of financially and your circumstances.