Purchasing a home is an investment. Instead of your monthly payments disappearing into the landlord’s pocket, your payments build equity in the house. The longer you make those payments and increase the value of the home, the more it will benefit you when borrowing home equity loans, refinancing, or selling the house.
Selling a home can be a stressful experience. Even in a seller’s market, the process can be very complex. If you decide to sell your home on the open real estate market, there are many steps before you sign the final purchase agreement. If selling through traditional means cannot help you achieve your goals, you should consider an instant offer from cash buyers.
What is an Instant Cash Offer?
When buying homes, most people rely on mortgage loans to afford the purchase price. In a traditional sale, sellers list their homes on multiple listing services (MLS) like Zillow or realtor.com. Interested buyers then find the property, schedule viewings or attend open houses, and may submit offers. This process can be lengthy, especially when buyers need to secure financing.
With an instant cash offer, you can skip or expedite many of the usual steps involved in a home sale. There is no need for a real estate agent, a lengthy bidding war, or a delay as the buyer gets their financing solution in order. Instead, the cash buyer can cover the full cost of the home instantly.
Benefits of Instant Cash Offers
Instant offers have significant advantages over traditional sales, but this doesn’t mean it is the right solution for every seller. Speed is often the primary motivation for accepting an instant offer. Since there is no financing approval process, the purchase can be resolved much faster.
A cash sale is also more convenient for both parties because there is no loan underwriting process or bidding war. There is also more certainty because you receive the cash at the moment of the sale, making it easier to set a concrete closing date.
Who Makes Instant Cash Offers?
Instant offers are not the norm when buying or selling a house. Most people need more resources to afford the full cost upfront. Instead, they borrow a mortgage loan and pay it back over time. However, some buyers are specially equipped to purchase homes with cash.
Cash Home-Buying Companies
Cash home-buying companies provide essential services for homeowners in unique situations. Often, people who need to sell their homes in difficult circumstances need help finding interested buyers. The house may be in disrepair, or they need to sell it quickly for tax reasons or to avoid foreclosure.
A cash home-buying company can buy the home quickly with an instant offer, facilitating a fast sale that helps the seller get the property off their books.
Real Estate Investors
Another group that can make cash offers on properties is real estate investors. Many investors are fearless in purchasing low-value properties to fix up and either sell or rent. Additionally, these investors often have substantial capital from their other rental properties, allowing them to buy homes in any condition.
How to Get an Instant Cash Offer
If you don’t want your property listed for a long time, then a cash offer is your best bet. Though instant offers are simpler, there are still important steps you must take to receive a cash offer for your home.
Provide Property Information
A cash buyer, whether an investor or a home-buying company, will need information about the property to generate an offer. You will need to provide the address, property details, and conditions to the buyer to receive a quote.
Other information may be required for the buyer to consider an amount, so a phone call may be necessary to answer their questions about the property.
Schedule a Walk-Through
The buyer will need to visit the home personally to better assess its fair market value. You’ll need to schedule a walk-through for the buyer or their representative so they can evaluate the property and generate an appropriate offer.
Their offer amount will depend on potential repairs, the value of the home, the current real estate market, and the condition in which you will sell it.
Receive and Review the Offer
Finally, you will receive a fair cash offer to buy your home. Cash buyers purchase homes for slightly less than you can find on the open market. However, these buyers can close quickly and reduce the upfront work needed to sell your house.
Review the all-cash offer to determine if it meets your sales goals. Once you accept the instant offer, the rest of the sales process will move quickly, as there is no financing delay.
Advantages of Accepting an Instant Cash Offer
As mentioned previously, instant offers are not the best solution for every seller. Some individuals are in unique situations where fast cash sales are necessary to address financial challenges or life circumstances. Here are some of the advantages of considering cash offers for your home.
Speed and Convenience
Selling your home for cash is much faster than the traditional method. First, fewer buyers have enough money to afford homes upfront, so you won’t have to worry about navigating multiple offers and a bidding war. Second, they already have the money to pay for your house.
Typically, you would have to wait for the buyer to navigate the loan process before you can close the sale. With funds on hand, cash buyers can close deals in a much shorter time frame, so there is less hassle involved.
No Need for Repairs or Showings
If you sell your home to an investor or cash-buying company, you may not have to stage it or do any repair work. These companies often buy houses as-is, which means even a home in complete disrepair can be sold.
Whether you are dealing with troublesome tenants, an impending foreclosure, or overwhelming repairs, selling to a cash offer company will make it easier to offload your property no matter what condition it is in.
Certainty and Flexibility
Since these buyers will take homes in any condition, there is a level of certainty to this sales method. Instead of worrying about pleasing picky buyers, you can rest assured that the state of your home is irrelevant to this buyer.
This certainty gives you greater flexibility when planning the next stage of your life, as you are guaranteed cash from the sale within an expedited timeline.
Avoiding Real Estate Agent Fees
Selling directly to an investment firm or cash-buying company cuts out the need for a real estate agent.
In a typical real estate sale, the seller will have to pay agent commissions to both agents involved in the transaction. This fee could be 5-6% of the offer price, cutting into your profits. In a cash sale, no agent is needed to facilitate the transaction, so you can avoid those costly commissions and walk away with more money.
When an Instant Cash Offer Might Be Right for You
Navigating the housing market can be complex and overwhelming. If you have a home in good condition and there is no rush to make the sale happen, you can afford to wait around for a better offer. However, sellers in unique situations may be incentivized to consider cash sales for several reasons.
Urgent Sale
An urgent sale must happen quickly, and waiting for a buyer to acquire financing is not an option for many. You may have just got a new job and have to sell your house quickly to finance your move to a new city. If you are strapped for cash due to financial difficulty, you may not have months to wait for the home sale to go through.
If the home is about to be foreclosed on or you have inherited it from a relative and wish to sell, a fast closing process is only possible with cash offers.
As-Is Sale
The home-selling process can take a long time if you plan to host open houses and make extensive repairs to entice buyers. If you want to avoid paying for the necessary repairs or leave behind unwanted possessions, a cash-buying company may be the only option that can meet your home purchase needs.
Avoiding Hassle and Uncertainty
Real estate transactions on the open market can be a hassle. If your home does not receive a huge wave of quick offers, you could be waiting months for a buyer to show interest in your home. Even if you accept that offer, they will need time to secure financing, schedule an inspection, and complete all the necessary steps before the closing date.
Some cash-for-home buyers don’t require a home inspection or needed repairs to be done before purchasing a house. Instead, they will take on those burdens for you if you accept their fast offer, making the selling process a hassle-free experience.
Looking for a Fair Cash Home Offer? Call Us Now!
Finding a cash-buying firm you can trust is essential for a smooth cash sale. At A-List Properties, we look for the best solution for each seller, whether that means a cash transaction or a traditional sale.
When we make a no-obligation offer, you don’t have to worry about paying agent fees, repair costs, or closing costs. These fees are all included in our cash offer. Whether you are selling a dream home, an inherited property, a troublesome rental, or a distressed building, we will take the property off your hands in 14 days or less.
Want to request a quote on your home? Call us today at 972-526-7042 or fill out the online form to request your no-obligation offer.
Zach Shelley
Zach Shelley is a seasoned real estate investor with a diverse network spanning across the nation. As the founder of his own real estate venture, Zach is committed to offering innovative solutions to homeowners facing various real estate challenges.. Through his dedication and strategic approach, Zach continues to make a significant impact in the real estate industry, providing homeowners with alternative pathways to navigate their property transactions.
