Selling your home can be stressful and very time-consuming, especially if you’ve been wanting a hassle-free experience. Unexpected life events can add a strain to selling a home. Whatever financial difficulties you’re facing, there’s always the option to sell your house for cash and to avoid the housing market.
What it Means to Sell a House for Cash
When selling a home for cash, it’s being sold to a cash buyer paying the total price upfront without needing to take out a mortgage. With eliminating the mortgage process, the most significant advantages are convenience and swiftness. When selling a house for cash, you can close in as little as ten days compared to almost forty-nine days with a conventional closing sale.
There are various reasons why someone would want to sell their home to us for cash. One of the first reasons is that there are repairs and upgrades to make, which the homeowner doesn’t have the funds for, so they sell “as is.” Second, they’re facing financial troubles and need cash now. Third, they’ve inherited a home they’re unable to keep.
Fourth, they want to downsize or relocate to a different neighborhood or state. Lastly, they face unexpected circumstances, so they must sell their house for cash now.
If a homeowner agrees to a $300,000 cash offer, the cash buyer must show accurate documentation or proof that they have the funds in their account. When contacting our professionals at InsightfulREI, we can purchase off-market houses needing home improvements or that have a discount.
Cash buyers are rare to come by these days, especially in our current economy. According to the National Association of Realtors, around seventy-eight percent of buyers financed their homes. To move forward with a cash offer, working with our professionals at InsightfulREI will ensure you always receive the best cash offer.
Reasons People Sell Their House for Cash
Now that we’ve dived into what it means to sell a home for cash, we’ll discuss some of the reasons why people sell their house for cash a little further in detail. When selling a home for cash, you’ll avoid the stress of dealing with negotiations and various potential buyers. When dealing with cash buyers, you’ll receive a simple transaction hassle-free.
Let’s discuss some of the advantages of selling a home for cash in more detail.
1. No Need for Staging or Repairs
Did you know that around eighty percent of potential buyers in the United States are looking for a move-in ready house to a house that needs upgrades and repairs? If a home needs repairs, it can make it more difficult to find a buyer. Well, by selling your house for cash to a house-buying business, you can eliminate the need for prep and repairs, which would be required when selling your home on the traditional market.
House-buying companies, such as ourselves, will buy your home “as is” since we have the expertise to make home improvements. This will remove the stress from your shoulders. Receiving a cash sale also means there is zero need for staging and keeping your home spot-free for weeks on end because of several showings.
2. Quicker Closing
When selling a home for cash, you can receive the cash much faster, typically within one to two weeks, compared to months when dealing with non-cash buyers. As of this year, mortgages are taking around forty-three days to complete. An appraisal is also required by the lender to confirm the amount of money that can be provided, which ends up causing further delays.
Receiving a cash offer from a house-buying business like InsightfulREI will allow you to close on your home in as little as ten days. For people who need cash fast, this is a tremendous advantage.
3. Fewer Holding Costs
If you own a home, you’ll be responsible for the carrying costs, also known as the holding costs, which are things such as utilities, maintenance, and other required fees that recur monthly. In a tough market, it could take around six months to sell your home. With this type of delay, it takes a long time to receive the equity from the home while continuing to pay monthly expenses.
When you receive a cash offer from a house-buying business, it will eliminate the need to pay for these costs. In addition, the longer a house is sitting on the market, the greater the chance you’ll need to reduce the price.
4. Smaller Fees
In addition to eliminating staging costs and repair costs, receiving a cash offer can also eliminate closing costs. There are many house-buying businesses that cover closing fees, which end up being around nine to ten percent of the sale. According to a recent study, it costs approximately $30,000 to sell a home to a buyer, so if selling a house for cash, you can include the closing costs related to every option.
It’s also worth pointing out that selling your house for cash will provide you with the peace of mind you need, especially for those who are already facing a difficult time. A seller who needs peace of mind regarding the sale should always choose a cash offer.
Some sellers dealing with life challenges like the death of a loved one or large amounts of bills are better off settling with a cash offer. While your cash offer may be lower, it won’t make selling your home difficult. If you need cash fast, placing your home for sale on the market can only add unwanted stress.
6. Eliminates Interest Rates
As buyers today are presented with extremely high interest rates, receiving a cash offer will eliminate the need to get approval on a loan. Since 2022, mortgage rates have only doubled, making it very difficult for potential buyers to receive a loan. With no risk of financing, a cash offer is a more straightforward way to go.
7. More Wiggle Room
Whether you’re not moving for a few months or you plan to move in a few weeks, a cash offer can give you a lot of flexibility. Sellers who are selling their home to a house-buying business can make their own move-out date.
How Much Do House Buying Companies Pay?
Many house-buying businesses make different cash offers on homes. The cash offer made depends on the condition of the home, location, and price point, and with these covered, it will make your home more desirable.
What a home is worth can vary even with cash buyers who pay immediately. For example, people who flip homes use the seventy percent rule, which means they won’t pay more than seventy percent of the ARV of the home, which adds in deductions when making home improvements or repairs.
When dealing with iBuyers, they’ll pay near market value because they prefer homes in good condition; however, they do charge a service fee that is around five percent of the total sale price. In addition, sellers must pay between one and two percent in fees.
Are Housing Buying Companies Legitimate?
Yes, various house-buying companies will buy homes for cash and will give you nothing but the most incredible experience. However, it’s always recommended by our professionals at InsightfulREI that you constantly research any buyer before signing any documentation.
When researching, you should always check to see if the house-buying business has a good reputation when purchasing homes. In addition, it’s also a great idea to check references with other sellers who have used the house-buying company and ask about their experience.
Sellers should remain cautious of some companies that are scams and tack on hidden fees. Other things you can do to research the house-buying company is to check their BBB rating and request proof of funds.
Sell Your House for Cash With InsightfulREI
InsightfulREI in Sacramento buys homes in and around the Sacramento area. With our simple, four-step process, you will tell us about your home; if it meets our requirements, we’ll set an appointment, we’ll give you a no-obligation cash offer, and we’ll close at a reputable title company in as little as seven days.
Our professionals take pride in providing you with outstanding services. We take “as is” properties, restore them, and sell them to buyers in the Sacramento area.
Our cash offers are based on ARV, repair costs, expenses from selling, holding costs, and minimum profits. If you’re considering selling your home in the Sacramento area, contact our professionals today to receive your no-obligation cash offer!
Sell My House For Cash: FAQ
1. How can I sell my house fast in Sacramento, California?
To sell your house fast in Sacramento, California, you can contact InsightfulREI to receive your no-obligation cash offer.
2. What time of year is best to sell a house in California?
The best time to sell a house in California is late spring through July.
3. Do cash buyers always offer less?
Cash buyers often offer less than the market value of the home.