With today’s seller’s market, is selling your home to an all-cash company worth it? If you’re able to sell your house fast without paying a real estate agent’s commission, you may be considering cash home sales. These companies can help you sell your home quickly and receive a check in your hand sooner than you might otherwise. Here are some reasons to consider selling your home to an all-cash company.
Sell your home to an all-cash company in today’s strong seller’s market
Many sellers choose to sell their homes to all-cash companies for a variety of reasons. These reasons include speed, convenience, peace of mind, and financial motivations. Perhaps you are moving for a new job and do not have time to deal with the appraisal risk. Maybe you don’t want to disrupt your life with a major repair or renovation project. Perhaps you have a troubled or occupied rental property that you’d rather not disturb. Whatever your reasons, there are many benefits to selling your home for cash.
First-time buyers have been squeezed out of the market. The share of first-time buyers fell to 31% in April from 34% a year ago. Increasing the number of institutional buyers has helped level the playing field for buyers with excellent incomes and credit profiles. But they’ve lost out to non-first-time buyers who have an all-cash offer.
You don’t have to pay a real estate agent’s commission
Traditionally, home sales involve two parties: a buyer and a seller. These parties pay a combined commission of about four to six percent of the sale price. This means that a seller who wants to sell a $350,000 home would pay $21,000 to $25,000 in realtor commissions. However, this amount varies by state and market. A seller who wants to sell for less than three hundred thousand dollars will save a few thousand dollars.
Despite this significant savings, a real estate agent’s commission can still make a big difference when selling a property. Commission rates for real estate agents have decreased in recent years. According to a recent survey, 60% of sellers were able to save money on the commission of their real estate agent. Here are some tips to avoid paying too much in real estate agent fees:
You don’t have to negotiate a price
When negotiating for a home, it is always better to have a firm price in mind. If you are unsure of your finances, you shouldn’t make multiple offers. Also, you shouldn’t be arrogant and come into the home buying process with a low offer price. The arrogance will turn the real estate agent and homeowner off, and you may not be able to make a deal.
Most cash home buyers are flexible and are willing to negotiate on the price. They usually offer a low initial quote, which may be less than the original listing price. To counter this, you can offer a slightly higher or lower price. However, if you’re unsure about the initial quote, you can always stick with the listed price. You don’t have to negotiate a price with cash home sales, but you should still be prepared to make a counteroffer.
You get a check faster
Cash home sales are a great option when you need to sell a home quickly for any number of reasons. Often times you may need to relocate closer to a sick relative, move to a smaller town, or have a new job in a different town. In any case, you will have a lot of time on your hands, and a cash buyer will pay you fast and easily. Buying a home with cash also avoids many of the steps involved in a traditional home sale. Unlike selling your home for a mortgage, cash buyers have no expectations of your home’s condition, and you can sell it as is.
Another reason why cash home sales are worth it is the lack of contingencies. Because cash buyers have immediate equity in the home, they feel a sense of security. Additionally, because they don’t have to worry about financing, they are less stressed about the sale. They also do not have to wait for a credit check or appraisal. These benefits make cash home sales well worth the extra time and stress that you save.
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