How Can You Sell Your House for Cash

If you are selling your house in a market that is hot for sellers you are likely to get multiple offers. Every offer will specify the sum that the buyer is willing to shell out and the mode in which they will pay.

You may also come across companies or people saying that we buy houses for cash. Such offers might sound appealing, don’t they? If you are interested in selling your property for cash, here are the things you should know.

The meaning of selling your house for cash

Essentially, if a We Buy Houses for cash company or entity makes a cash offer to buy your house they are not applying for a mortgage. They have sufficient money to cover the entire buying price, liquid and ready to go. So, if the sale goes through, the cash buyer just transfers all that money into your account.

Benefits of selling your house for cash

There are many benefits if you choose to go down this route. Firstly, it simplifies everything. As there is no mortgage involved, you don’t have to deal with the hassles of the loan approval process.

Secondly, it is a much faster process compared to selling traditionally. Again, as there is no lender in the equation, the timeline gets reduced significantly.

Cash deals also have a relatively lower possibility of falling through as such buyers have the complete amount required to make the purchase. If the buyer is depending on a loan to buy the house, there is always a probability that their application might get turned down. And no finance means no purchase.

Additionally, you can even sell your house as is if you have a cash offer on the table. This implies you don’t have to make costly repairs or even stage your house. This is a big deal for homeowners who are facing disclosures or have distressed properties that they don’t have the money or time to make repairs to.

Sellers do not have to worry about buyer closing costs either.

Drawbacks of selling your house for cash

There is a downside to everything and cash sales are not without them either. One of the top reasons some homeowners may avoid selling to cash buyers is that they are likely to get less money.

It could also be difficult to negotiate the price, especially if you are selling to a big business. Their offers are usually take-it-or-leave-it.

Also, the cash buying industry could be a magnet for scammers. Most homeowners who go with cash offers are facing some difficulty with their properties and fraudsters might take advantage of their desperation by buying a home for less than the market value.

How to sell your home for cash

There are two main types of companies that buy houses for cash. The first one is We Buy Houses for cash firms. These companies buy homes at a big discount and normally purchase only those properties which are in a distressed state.

The second type is an iBuyer. iBuyer or instant buyer makes competitive offers that are at par with what your house will be worth in the market. However, they only function in select locations and have stringent eligibility criteria.

We Buy Houses for cash firms can be a nice option for homeowners who have a distressed property or are facing foreclosure.

iBuyers are good for sellers who seek a fast and convenient sale for a home that is in good condition. They are a better alternative to We buy Houses for cash companies as they pay more for these homes.

Nonetheless, not all sellers will be eligible for their offer.

Companies that buy houses for cash

1. Offerpad

For homeowners who want to sell fast, working with an iBuyer such as Offerpad is a smart way of retaining much of your house’s equity.

Unlike most cash buyers, Offerpad is a good option as it provides more flexibility on repairs and closing dates than most of its contemporaries. It charges a 5% service fee, which is also lower than what most iBuyers charge.

2. Opendoor

Opendoor is another good choice of iBuyers for sellers who want to sell their houses fast. It usually pays lower than what one may get on the open market, however, like other iBuyers, it gives more than most cash buyers.

Opendoor does not offer the same flexibility on closing dates as Offerpad. It is, however, available in more places.

3. We Buy Ugly Houses

This is one of the biggest and most well-known we buy houses for cash company. It has more than 800 franchise locations.

While it has great brand recognition, the firm’s offers are typically lower compared to what the house can fetch on the open market. It doesn’t pay above 70% of the after-repair value of the house.

Check out we buy ugly houses reviews for more information.

4. RedfinNow

The company purchases houses in 31 cities and unlike other iBuyers, it even buys vacant houses. Nonetheless, the company charges a variable service fee of 5-13% depending on the condition and location of your house.

This makes it potentially more costly than others we buy houses for cash companies.