By Sophia Perry AZMOVINGPROS.com
The question of whether you should sell your home for cash is a legitimate dilemma which has its pros and cons – depending on your financial situation, the state your home is in, the current market value of your home, and the expected markup. For this reason, we have listed things to consider before selling your home for cash so that you can make the right decision based on your circumstances.
The advantages
1. You can get a ‘fast’ offer for your home
Investors that are interested in buying your home for cash will give you an offer quickly. This is useful because you will know how much you can get for your home from the get-go. In some cases, it happens that you will get an offer immediately, whereas sometimes the buyers may insist on seeing the property before giving you their estimation.
2. You can sell your house fast
If you are in a rush to sell your home as soon as possible, then selling it for cash is the quickest way to seal the deal, provided the buyer is able to finalize the ownership transfer, insurance work, and home inspections in due time.
3. You do not have to invest in home repairs and home staging
Buyers typically do not expect you to invest in the property before selling because they intend to do so themselves. This is beneficial for people who want to make money quickly without any additional expenses. This scenario is also preferable if you are looking to move soon. Just make sure that you find some advice for this process on azmovingpros.com and other publications.
4. You can sell your home for cash when you are dealing with a challenging real estate market
Certain scenarios destimulate buyer interest. These include unclear ownership or titles, properties with unresolved debts, burnt, dilapidated, or otherwise damaged property, homes with code violations, etc. In these cases, selling for cash is likely to attract investors looking for a property they can repair, redesign, and resell.
The disadvantages
1. The investors may offer to pay less than the market value
The major downside of selling your home for cash is that there is a big chance it will be undervalued. As mentioned above, investors look for properties that they can renovate, resell for a higher price than what they pay you, and earn easy profit.
2. The sale may not be 100% guaranteed
Until you sign the purchase agreement and receive the cash, nobody guarantees that the sale will be finalized. Some buyers do this intentionally; that is, they make a deal with you but try to sell your house to another investor for a higher price.
3. Some investors reduce repair and remodelling expenses from the final price
Be aware that, in order to profit, homebuyers and investors will suggest a price that is intentionally reduced to account for subsequent repair and renovation costs. When you add this to the existing profit margin these investors take, selling your home for cash can put you at risk of making significantly less than what is realistic.