Who Will Buy Your House With Cash?
You may have a house that you need to sell quickly and don’t know where to turn. You may be in a situation where you are in dire need of some funds and have a property that you can liquidate to raise those funds, but don’t have months to wait on a buyer to close on your property. So where do you turn? Who will buy your house? That’s what we are about to cover, so read on.
Typically people that will buy your house with cash are real estate investors. These investors have cash to pay for houses which means they are able to close quickly. They don’t have to wait weeks to see if they can qualify or even jump through all of the hoops for applying for a mortgage loan.
Let’s get one thing straight right off the bat first. No matter how you choose to sell your house, when you leave the closing table you will walk away with cash, it’s just the way it works. If you currently have a mortgage on your property and you sell to a regular buyer, at closing your mortgage is paid off by the new buyer. If you have any equity in the house, then you receive those proceeds.
Advantages In Selling Your Home To A Cash Buyer
So what are some of the advantages of selling your property to a cash buyer who doesn’t have to wait on loan approvals? This was covered well by Maximum Exposure Real Estate:
1. It’s easy.
Selling a home that needs work can be challenging if you want to get the best possible price. With a house flipping company, you avoid the difficulty of trying to sell for a good price. Instead, you sell to a company that will buy your house for the lowest price it can get away with. In exchange for taking a low price, you can quickly free yourself of the burden of owning the home. If you are in desperation mode this is often times your best bet. Selling to a real estate investor can get you out from under a problem very quickly.
2. You only have to make one decision.
Your only decision when selling to a house flipping company is to sell, or not to sell. You won’t have to decide what repairs to make or who you want to sell to. You will get an offer and make a single decision. After that, you are free of the home. Most often a house flipping company will be paying cash and there can be a quick closing if this is what you are after.
3. You don’t have to find a real estate agent.
Finding a good real estate agent can take a little bit of effort. You may have to interview several to find someone you are really comfortable with. You also don’t have to worry about disagreeing with your real estate agent once you hire one, which can happen. You are going solo.
Everything they stated there is true. However there are some cons in choosing a house flipping company, it’s not for everybody. For instance, if you are in no hurry to sell your house and have all the time in the world, they are not going to be your best bet. Additionally you may have a new house and may have only lived in it for a year or two. In this case if you have a 30 year mortgage you haven’t even started to chip away at the principal balance. Here no matter how you sell it will be difficult to come out without loosing any money, unless you are in an area that is in high demand and home values are quickly rising.
Disadvantages Of Selling To A Cash Buyer
As we started stating above, selling your house to an investor isn’t for everyone and there are some disadvantages of selling your property this way. Forbes had this to say about it:
- Investors Do Not Need a License to Buy – This means as the seller, you know nothing about the person/entity offering to buy your home. Some investors are corporations, but some are individuals who just happen to also be real estate agents. This is cause for concern for many sellers because they question the motive behind the purchase; do they want to buy my home to resell it for more?
- There are Plenty of Scam Artists Posing as Investors – There’s a risk of fraud in any financial transaction, but it’s especially critical to avoid scams when dealing with your largest asset. To avoid any issues, get the name of the investor and do research online to see who they are, ask for references, look them up with the Better Business Bureau, and ask your listing agent to do some research on your behalf.
- Homeowners Will Likely Sell Below Market Value – Investors have their own costs to contend with and you can be assured that those costs will be factored into their offered price. Investors are also aware of the power behind their cash offer and the fact that they are taking a risk by purchasing “as is.” They may be relying on your motivation to get out quickly. Whatever the reason, it is unlikely that an investor will pay market value for a home in its peak condition.
- Read The Full Article “Pros And Cons Of Selling Your Home To A Real Estate Investor” Here
As for their first statement “are they wanting to buy my house and sell it for more?”, this is always the case. The investors intend on purchasing your property in the condition it is currently in and then make the repairs to the property and sell it for a higher price to another retail buyer.
As for fraud – that can be kind of difficult in Georgia. Georgia is a judicial state which means when you sell your property it has to go through a closing attorney. Attorneys are not likely to risk their license for one deal.
Lastly – home owners will sell below market value. Again, yes. Investors are taking a great deal of risks when purchasing your property. Any hidden issues can cost them greatly and they also have holding cost to deal with while they perform the repairs to your property.
Summing It Up
Who will buy your house for cash? Real Estate Investors. Keep in mind this option is not for everyone. Generally it is for sellers who are in a bind and need to sell quickly to free up cash. Do your homework and make sure you are dealing with a reputable company.
If you want to sell your house to a cash buyer, be sure and visit our website or call us at (770) 756-8680 and we will be more than happy to make you an offer on your property which you can either accept or deny. We genuinely care about your situation and will make you the best offer that we possibly can.