If you’re in the market to sell your home, you may be wondering what the pros and cons are of working with a cash home buyer. The benefits to selling your for cash are numerous provided you work with a reliable buyer.
At KC Property Guys, our A+ Better Business Bureau-rated real estate investment firm buys homes for cash from homeowners across the Kansas City Area. In this guide, we’ll discuss the pros and cons of selling your home to a cash buyer.
What is a Cash Home Buyer?
Just as it sounds, in real estate, a cash home buyer purchases a house in cash for the full amount upfront. These buyers use their own funds and do not need to secure a mortgage to purchase the house.
A cash home buyer can be an individual or a real estate investment company.
What are the Pros?
The pros of selling your home for cash versus the traditional route include:
- a quicker deal
- fewer stipulations
- fewer fees
- Less prep work
- Less risk
A Quicker Deal
If you need to sell a house fast, selling to a cash buyer can be a significantly faster process than to a buyer working with a lender. Without having to work with lenders, closing a deal is often at least twice as fast. This speed can be crucial for homeowners who need to quickly relocate or use the cash from the sale for a large, imminent expense.
Selling a home for cash often comes with fewer stipulations than working with a traditional buyer. Cash buyers are often willing to purchase the house without bringing in outside appraisers and inspectors. They are often more willing to close on deals without requiring repairs or engaging in negotiations about items in the home.
Selling a home through the traditional route can come with a myriad of fees to real estate agents, attorneys, and other third-party members. When working with a cash buyer, the sale is often much more direct and there are fewer fees to pay to other parties. For homeowners who want to sell their home without the burden of working with and paying multiple parties/agents, then selling to a cash buyer can be an excellent solution.
Less Prep Work
When marketing a home to traditional buyers, sellers normally have to deep clean, stage their home, and make repairs to accommodate for multiple showings. Cleaning, repairing, and staging a home for showings can be an expensive and time-consuming affair that is not normally required when working with a cash buyer. This is because many individual buyers and real estate investment firms are willing to quickly buy homes as-is and do their own repairs and work on the homes, either to keep or sell.
Selling a home can be a risky venture, and the risk of working with a buyer who needs to secure financing is that the financing could fall through, even at the last minute. This can leave the homeowner in a precarious and vulnerable position. With cash buyers, the buyer does not need to secure financing, and as such, there’s much less risk that the sale will fall through due to financial constraints. As long as the buyer can provide proof of the required funds, the seller is in a far less risky position.
What are the Potential Cons of Working with a Cash Home Buyer?
The potential cons of working with a cash home buyer can include:
- Becoming the victim of a cash buyer scam
Avoid Becoming the Victim of a Cash Buyer Scam
When selling a home for cash, homeowners need to be vigilant about who they’re working with to not fall victim to a scam. Homeowners can protect themselves by requiring proof of funds, researching the company (if applicable), using a strong contract, and not wiring money to the buyer if demanded.
Contact the Real Estate Investment Pros at KC Property Guys
At KC Property Guys, as the #1 leading cash home buyer in the Kansas City area with an A+ rating with the Better Business Bureau, homeowners who work with our team of real estate investment professionals can remain confident in engaging in a fair, reliable, and transparent sale process. If you’re in need of a reputable cash home buyer, contact us today and see how we can work with you!