These days, plenty of companies offer to buy people’s houses for cash and many homeowners choose to take advantage of the services that these firms offer. However, like any sort of financial transaction, this one has its pros and cons.
To help you understand the benefits and drawbacks of selling your home for cash, versus selling it the old-fashioned way, we’ve created a factual guideline. Once you’ve learned more about this form of transaction, you’ll be able to decide which company or local home buyer is right for you.
Advantages of Selling a Home for Cash
Certain types of homeowners will tend to find this type of transaction very appealing. In particular, those who aren’t interested in waiting in order to sell a home and/or those who don’t have the money, motivation, time and energy to invest in sprucing up a home for sale may find that this setup offers a plethora of practical advantages.
After all, there are lots of variables to consider when it comes to listing and selling a property in a more conventional manner. In other words, expenses tend to add up rapidly, as homeowners must have their properties professionally photographed, marketed and staged.
In addition, if the services of real estate agencies or a real estate agent are being utilized, the real estate firm or independent agent will take a share of the proceeds from a sale.
As you see, preparing to sell a home is expensive and you’ll usually need to pay a fee to a real estate agent when the sale goes through. If you sell it yourself, you’ll need to spend lots of time taking care of details which are related to attracting prospective buyers, showing the home and ensuring that the contract for sale is to your financial benefit.
So, it may be cheaper to sell a home for cash and the process should move a lot faster than a traditional sale would. However, there will be exceptions. Basically, how much you may expect to benefit financially from a deal of this type will largely depend on which firm you choose to sell your home to.
If you choose the wrong firm, you may come face-to-face with the sometimes-significant “cons” of this form of real estate transaction.
So, it is important to proceed with caution before signing on the dotted line…
Avoid Unethical Companies At All Costs
Certain firms which buy homes for cash are a little shady. Some of them just don’t have proven track records and more than a few of them may earn profits by taking advantage of homeowners who are desperate for quick cash and fast results.
Conversely, good companies of this type will be established firms which earn great rankings from consumer watchdog organizations and real-life customers. Doing research on prospective firms will be the key to separating the bad apples from the bunch.
Luckily, the Internet makes it very simple to get the inside scoop on the reputations and business policies of prospective companies. So, do take the time to vet contenders before making a final decision about whom to work with.
Checking ratings at the official Better Business Bureau website will be a great way to get the ball rolling. Companies with ethical business practices will usually earn very high ratings at the BBB website.
How the Process Works
A good company should provide you with a realistic quotation. Expect to answer a lot of questions about your house before a deal is finalized. Your answers will help a company representative to decide how much cash the company is willing to give you in exchange for the title to your property.
As the deal moves forward, a representative will drop by your home and look around, in order to verify the facts that you’ve supplied.
Most companies of this type are interested in “flipping” your house for profit. This means that they’ll give you sixty to eighty percent of the assigned value of your home, in cash, once both parties sign the contract. At this point, the company will ensure that your former home is spruced up. When it’s been upgraded and/or repaired, the company will sell it, hopefully for a tidy profit.
If sixty to eighty percent works for you, this type of deal may be just what you’re looking for. Just be certain to read the fine print on your contract before deciding whether or not to sign. It’s smart to have a lawyer review the contract before you do sign it. The money that it costs to have an attorney look things over will always be money well spent, so please don’t neglect this important step.
Now that you know more about the this type of real estate deal, you’ll be one step closer to deciding whether or not it’s right for your needs.