If you’ve been looking to sell your home in Washington, you’ve likely heard of cash offers. The question you now might be asking is, what is a home cash offer?
A cash offer is an offer to purchase real estate while ruling out the financing process. A cash buyer will purchase your property with cash, helping to simplify the home selling process so that you can close quickly.
According to the National Association of Realtors, more than 16% of homes are sold in cash buys. There are two main scenarios in which sellers receive cash for their homes:
- A buyer provides a cash offer on a listed home
- An individual or investor offers cash for an off-market home
Both of these scenarios can be beneficial, though the off-market scenario is the only one that eliminates the majority of seller fees.
Why Sell Your Home For Cash
Close Quickly
The mortgage process can be incredibly time-consuming. Accepting a cash offer can close the home of your sale in as little as one week. Compare one week to the average of 45 days that it usually takes to sell a home in Seattle with traditional financing and it’s a pretty good deal. If you need to move fast for whatever reason, selling your home for cash is an excellent idea.
Reduce the Financial Risks
In some cases, a buyer’s financing will fall through, regardless of if they pre-qualified for the mortgage loan. If you find yourself in this scenario, you will have to start the process all over again, which is a huge waste of time. With cash offers, you don’t have the risk that financing will fall through, allowing you to progress with the home sale with total confidence.
Reduce Fees
Cash buyers don’t have to pay loan-related charges like origination fees. Even for the seller, a cash offer can cost far less. You might not even need to get a realtor involved depending on where you are getting the offer from, allowing you to reduce commission fees. On average, real estate commission fees can cost anywhere from 5-6% of the total sale price on a home.
Plus, cash buyers don’t require any sort of staging or repairs, which can save you thousands of dollars upfront.
Things To Look Out For When Seeking Out Cash Offers
It is important to look out for real estate scams, which is why it is so important to look for references and d do your research. Remember, you won’t have a lender to help you vet a buyer in a cash offer situation.
Always be weary of overpayments, as these tactics are common in scams. A buyer will send the seller a false check, asking you to return a bit of the cash. Little do you know, you’ve been a victim of fraud the whole time.
If you decide to work with an iBuyer, note that your fees could end up sitting anywhere from 13-15% of the total home price, double that of an agent.
Of course, you should also keep in mind that you won’t get top-dollar selling through a cash buyer. If you’re looking to maximize profit, you may consider selling traditionally. However, if you’re looking to sell fast and easy, get in contact with us here at HelloPad, as we promise to offer a fair price.