Ever see signs and people marketing â€œWe Buy Houses for Cash?â€
To some individuals it may be irrelevant, but to others who are headed towards the foreclosure of their home, this may be the ideal deal. Letâ€™s break down the benefits and the disadvantages to doing so:
The benefits include a fast sale (around seven days) without hassle since these buyers are likely going to proceed with a rehab and/or a quick sale. Furthermore, sales donâ€™t require rehabs as most cash buyer buy it â€œas is.â€ In addition, cash provides certainty that you would not otherwise get with a normal sale.
The disadvantages include having to sell at a lower value than market-price. Cash buyer typicallyÂ offer 60-90% of the market-value price. For instance, if your home is marked by the Appraiser at $200,000 you might get an offer of $140,000. Moreover, it is important to be cautious of some cash buyers who may leave you hanging.
Ultimately the decision to sell to a cash buyer comes down to your individual circumstance, do you trust the buyer? Are you need for a fast sale? Perhaps youâ€™re relocating, youâ€™re behind on payments, youâ€™re headed to a foreclosure, you donâ€™t want to deal with broker and realtor fees, you inherited the home, you are dealing with permit violations or any other reason. It depends on your own cost-benefit analysis if the situation is right for you.