Selling your house for cash can be convenient and attractive for many homeowners. In a cash sale, the buyer pays for the property in full with cash or a cash equivalent, such as a cashier’s check or wire transfer. This means that the sale can be completed quickly and without financing, which can be a significant advantage in certain situations.
Home Light Reports that “In September 2022, cash sales represented 22% of existing home sales, which is a slight decline from a year earlier. Despite the rapid rise in home prices to a median price of over $450,000, buyers have been more eager to pay cash or find a cash solution to avoid higher interest rates on a mortgage.”
Here are the top 10 benefits of selling your house for cash:
- Quick closing: A cash sale can be completed much quicker than an MLS sale, which typically involves obtaining financing and can take several weeks or even months to complete. In a cash sale, the buyer already has the funds available so that the sale can be completed quickly, often within a couple of days.
- No contingencies: In an MLS sale, the buyer may include contingencies in the purchase contract, such as obtaining financing or completing a home inspection. These contingencies can delay the closing and make the process more complicated. In a cash sale, the buyer does not need to worry about contingencies, so the sale can proceed smoothly and efficiently.
- No need for repairs: When selling your house for cash, the buyer typically pays a fair market value for the property “as is,” without requiring any repairs or improvements. This means you don’t have to worry about making costly repairs or updates before selling your house.
- Avoid foreclosure: If you are facing foreclosure on your mortgage, selling your house for cash can be a way to avoid the damage to your credit score and the financial losses that come with foreclosure. A cash sale can provide you with the funds you need to pay off your mortgage and any outstanding debts, allowing you to move on with your life.
- Avoid real estate commissions: In a traditional sale, you typically have to pay a real estate commission, which can be a significant expense. There is no need for a real estate agent in a cash sale so that you can save money on commissions.
- Avoid showings: When you sell your house through a traditional sale, you have to allow potential buyers to view the property, which can be inconvenient and disruptive to your daily routine. There is no need for showings in a cash sale so you can avoid the hassle and inconvenience.
- Avoid dealing with buyers’ financing: In a traditional sale, you must rely on the buyer to obtain financing and close the sale. This can be risky, as the buyer may not be able to secure a loan or may have last-minute changes to the purchase contract. In a cash sale, the buyer already has the funds available, so there is no need to worry about financing.
- Flexibility: Selling your house for cash can give you more flexibility in terms of the sale. For example, you may be able to negotiate a shorter closing period, a higher purchase price, or other concessions that are not possible in a traditional sale.
- Simplicity: A cash sale is a straightforward process that is typically less complicated and stressful than a traditional sale. There are no contingencies to worry about, no financing to arrange, and no real estate commissions to pay. This can make the process much simpler and easier for you.
- Certainty: In an MLS sale, there are quite a few factors that can impact the success of the sale. This includes the buyer’s ability to obtain a loan, condition of the property, and overall market conditions. In a cash sale, the buyer already has the funds available, so the sale is much more certain to be completed. This can provide you with greater peaceWhile the number of cash purchases has increased dramatically since the pandemic, World Property Journal reports the amount of these transactions made varied across the country “All-cash purchases most prevalent in Florida; least prevalent in the Bay Area. All-cash home purchases increased in 29 of the 39 metros in Redfins analysis from October 2021 to October 2022. They increased most in Riverside, CA, where they rose to 38% of all home sales from 19.2%.”