Do Cash buyers pay well? That is the question many people have when they decide to sell their homes. They avoid key costs associated with traditional lending and eviction. Plus, they avoid all the paperwork and negotiating. But are they really worth it? Here are some things you should keep in mind before you decide to work with a cash buyer. This is a quick look at the advantages and disadvantages of cash sales.
Cash buyers avoid key lending costs
While a mortgage is still necessary for most homebuyers, the process of buying with cash is simpler and quicker. As a result, cash buyers avoid key lending costs and can enjoy a number of benefits. Not only do cash buyers avoid the cost of mortgage interest, they also save thousands of dollars in mortgage interest payments. If you borrow $200,000 for 30 years at 3.5% interest, you’ll pay $123,300 in interest. By buying with cash, you’ll be able to keep that money in your pocket and use it on other expenses.
They avoid eviction
Cash buyers avoid eviction by making fast cash offers on your house. They can close a deal in seven to fourteen days, and they don’t require you to clean or make repairs. By selling your home fast and for cash, you’ll avoid eviction and save your credit score. You’ll also get cash in your hand, and you can avoid unwanted phone calls from mortgage companies, lenders, and collection agencies.
They move quickly
Unlike traditional buyers, cash buyers offer a quick and convenient solution to selling your property. While they may offer less money than market value, cash buyers are more likely to follow through with the deal they make, which makes the process faster for both the seller and buyer. Here are some tips to make your dealings with cash buyers go as smoothly as possible:
They pay less than mortgages
For decades, cash buyers have paid less for homes than those who used mortgages. That difference is now even more dramatic – 12%. That’s equivalent to $176,000 difference. One reason is certainty. Cash buyers avoid mortgage companies, so there’s no risk of the deal falling through because of a failed appraisal, inspection, or qualification issue. Purchasing a home in cash has many advantages. Here are some of the benefits to a cash buyer.
They buy in as-is condition
Many real estate agents will list a home as “cash offers only” when the problems prevent a home from qualifying for a mortgage. Depending on the condition of the property, cash buyers may be interested in fixing it up, or they may be corporate investors looking to make a quick sale. Either way, you can find out if a cash buyer will be a good option for you by talking to your realtor.
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