Long gone are the days of listing your home on the market to sell it. While this is still a popular method, you also have the option to sell your home to a company for cash. But is this method ideal, or should you go the traditional route? It depends on the type of cash buyer you’re considering.
Submit an online application form to inquire about Angel Oak Mortgage Solutions financing options.
Buy a home or refinance your existing mortgage with Zero Mortgage.
Older homeowners can get peace of mind and added financial security with a reverse mortgage from AAG.
In this guide, you’ll learn more about each option to make an informed decision.
Types Of Cash Home Buyers
There are several types of cash home buyers to choose from, including:
- House flippers
- Buy-and-hold investors
- Trade-in companies
- iBuyers
House Flippers
House flippers find homes that are not in the best condition and make rock-bottom cash offers to homeowners. On average, it takes a house flipper between six months and a year to renovate and sell each home. But the wait is often well worth it since these homes tend to sell for far more than the house flipper invested in acquiring the property and making much-needed upgrades.
Buy-And-Hold Investors
Some investors purchase properties for cash with no intent to sell them off. Instead, the homes are converted to rental properties once any necessary repairs and upgrades are completed. Be mindful that the investment company could opt to secure financing. In that case, the closing time could be far longer than what you’d get with a cash transaction.
Trade-In Companies
If you’re looking to sell your home fast to close on a new property, a trade-in company could be appealing to you. They offer homeowners cash to buy a new home that’s equivalent to the market value of their current property. Meanwhile, they also list the house and keep a percentage of the earnings once it is sold.
iBuyers
These companies operate in several markets nationwide and focus on homes that are in good condition and require minimal repairs and upgrades before they can hit the market. Ideally, iBuyers want to list the homes they buy relatively quickly to turn a profit.
Submit an online application form to inquire about Angel Oak Mortgage Solutions financing options.
Buy a home or refinance your existing mortgage with Zero Mortgage.
Older homeowners can get peace of mind and added financial security with a reverse mortgage from AAG.
Cash Home Buyers FAQs
Here are some frequently asked questions regarding cash home buyers.
Yes, several reputable companies buy homes for cash. However, you could find that the offer you receive is relatively low, so it’s best to explore multiple options and request cash offers from more than one potential buyer before making a decision.
In most instances, you’ll get a cash offer for around 70 percent (or lower) of your home’s projected value after renovations are complete.
You’ll avoid paying real estate commissions by selling your home for cash. However, many charge a service fee, and you’ll also be on the hook for all the other closing costs you’d pay with a traditional real estate transaction.
It depends on your personal circumstances. For example, if you need to sell your home fast, a cash buyer could be better. But if you’d like to test the market to get more for your property, it may be more sensible to use a real estate agent.
Is It A Good Idea To Sell Your House To A Cash Home Buyer?
Selling your house to a cash home buyer may be a good idea if:
- You need to sell your home fast.
- You’re relocating soon and already have a move-out date.
- You can’t close on your new home until your current property is sold and risk the deal falling through.
- You’d prefer not to go through the hassle of preparing your home for the market and welcoming strangers for walk-throughs.
