It may make sense to locate a smaller, more affordable place to live and selling your present house to a cash buyer when downsizing, whether it’s due to retirement, children leaving home, a decline in income, divorce, or other life circumstances. Moving into a smaller home, for whatever reason, necessitates a mental shift. It might be a difficult decision to make, with feelings of worry, anxiety, and even dread, but don’t allow your emotions guide you. Examine the advantages of selling to a cash buyer when downsizing and decide if it’s something you want to do.
What is a Cash Offer?
Cash bids on a property for sale are known as cash offers. When a buyer gives a seller cash for the full cost of a home instead of securing financing from a mortgage lender or another institution, it is known as a cash offer.
Is Selling to a Cash Buyer When Downsizing a Smart Choice?
Taking cash offers for properties has various advantages. To begin with, the typical mortgage buyer will take 30-45 days to complete the transaction, but a cash offer may only take around a week or two. Ultimately, in a competitive market, selecting a cash home buyer offer over a mortgage buyer would favor sellers. The smoothest and most successful buyers are those who present the fewest hurdles.
1. More Flexible and Quicker Sale Progression
Cash offers for homes are more appealing to sellers because there is no chance of the acquisition falling through and the closing time is quicker. A cash home buyer does not require a mortgage since, as the name implies, they already have the funds to make the purchase. As a result, you can bypass the mortgage application and approval process.
There’s also less of a danger that the financing will fall through if you don’t have to acquire a mortgage. A mortgage buyer may suffer financial issues, such as a job change or identity theft, which may cause the sale to fall through. Furthermore, the mortgage underwriting process might take a month upwards of, but there is always the risk that the purchase would not go through due to the buyer’s inability to acquire financing at that period. As a result, mortgage purchasers are less dependable and certain.
There is no mortgage paperwork, underwriting, or appraisal when you sell a home for cash. The buyer will need to arrange for title insurance and insurance, as well as present evidence of finances and complete closing documents, but this should only take a week or two. A buyer who makes a cash offer must produce proof of finances to the seller, demonstrating that the buyer is capable and prepared to deal swiftly.
A quicker closing means more money in the seller’s pocket. A cash offer simply requires a settlement statement, title, deed, and a cashier’s cheque to close. Because no loan fees or transactions are required, there is less paperwork and overall closing costs.
2. No Upgrades or Updates Needed
When selling a house for cash, you may usually sell it as-is. When you sell your property “as-is,” the buyer has the option to accept or reject it. Before a buyer chooses to buy your house, you do not have to commit to make repairs or upgrades. As a result, with cash offers for homes, there are typically minimal, if any, conditions.
3. You Don’t Have to Pay Real Estate Fees
When you make a cash offer on a home, you avoid having to pay a commission to a real estate agent. Commission fees are generally 6%, which can add up to a significant portion of your selling price. A seller will save money on upgrades, bank fees, agency costs, and interest fees by taking less money from a cash house buyer than they would from a mortgage buyer.
Thinking About Selling Your Home to a Cash Buyer When Downsizing? Let KC Property Guys Help!
If you’re considering moving to a smaller abode, and are thinking about selling your home to a cash buyer when downsizing, then let Kansas City’s top rated home buyer—KC Property Guys—help you out! Contact us to find out how we can help you!