Traditional real estate isn’t always the move these days. When someone decides to sell their house, they need to go through the sometimes long and slow process of hiring a real estate agent, showing the house, finding a buyer, and negotiating prices and contracts. This route does have quite a few benefits, including having more control over the amount the home sells for, but a short timeline usually doesn’t make the cut. Sometimes, people need to sell their homes fast. This is where investors, such as iBuyers (instant buyers), come into play. If you’re considering selling your home for cash, here are some things you need to know first.
Why Cash for Houses?
Selling your home for cash takes a lot of the legwork and energy out of the equation. Instead of going through the traditional selling process and listing your home, you’ll sell it directly to a buyer or investor. This is so quick because these lenders don’t go through the usual financing process, which can take months. Instead, they’re able to offer you cash for your property. When they acquire the property, they’ll either sell or rent out the property after completing any renovations to make a profit.
The types of people who usually go this route are either people who don’t have the time to go through the traditional process or who don’t have the means to complete any necessary home improvement projects, like roofing or plumbing, to make sure the house is inspection ready. This process is much easier and way less time-consuming.
Types of Cash Buyers
There are quite a few types of cash buyers navigating the market. These include the following:
- Buy and Hold Investors: One of the most common types of a cash buyer is buying and holding investors. These people or companies will purchase your home to rent it out. This type of investment allows the new owner to make a passive income for as long as they decide to rent the home out. Often, the owner or owners will own multiple of these properties!
- House Flippers: Many homeowners don’t have the time or money to fix up their older homes. Instead of waiting it out, they’ll sell their home for a lower price to house flippers. These people or companies will purchase a fixer-upper, work on the house, and then sell it for a higher price to make a profit.
- iBuyers: iBuyers—instant buyers—will use technology to make cash offers on residential homes and resell them for a higher cost. Usually, the homes they buy don’t require many updates and can be sold quickly. The benefit for the homeowner? They don’t have to put in the effort of listing, marketing, and selling the house.
Some of Your Options
Before choosing whether you want to sell your home for cash, it’s best to know the tools at your disposal. Use a net proceeds calculator to get your home’s overall value and decide if a cash sale is worth it. If you decide that a cash sale isn’t right for you, make sure you get the lowdown on tips from top agents in the country. You’ll want to make the most informed decision possible. Regardless of why you want to sell your home or the route that seems the most desirable to do so, proceed tactfully.
Featured Image by Paul Brennan from Pixabay