A cash home sale is nearly always preferred by sellers to a standard sale, for various reasons. The problem is often trying to find the right buyer and ironing out all of the details – cash buyers will want to be compensated for their mode of payment.
But as the saying goes, “Cash is King”, and will be for the foreseeable future. It’s obvious that dealing with a buyer with the funds at hand is going to be easier than dealing with a buyer who has yet to attain the required finance.
How A Cash Home Sale In Lincoln Can Benefit You
#1 – Increased Security of Sale
What happens all too frequently with traditional sales is that an offer is accepted but the buyer then fails to qualify for a loan or runs into some other difficulty. For homes that cost over $400,000, the lending institution will want an appraisal done on the property. If the appraisal value is less than the mortgage, then the loan could be canceled.
This can be immensely frustrating for sellers after going through a stressful process of marketing, finding a buyer, and finalizing a transaction. Even buyers who do qualify for a loan can fall short – their financial situation might change, or they may not have been honest in their loan application. In comparison, fewer sales fall through with cash sales, where the funds are at hand from the outset.
Of course, it’s worth bearing in mind that proof of funds always needs to be obtained first. Unless the buyer shows proof of funds, then he or she should be treated as having no funds at all. Many innocent sellers have fallen prey to real estate fraud, so make sure you work with a reputable seller or cash home buying firm.
#2 – Speed of Sale
As opposed to using a loan intermediary, a cash home sale is much, much quicker.
The added complexity of securing the finance has already been taken care of – and this is often the most problematic step. If the buyer cannot get the finance, it can further delay the sale of a home by months.
Homebuyers don’t need 30 – 45 days to close on a house if they are paying with cash. There are fewer things that can go wrong with a short escrow period (which is often less than 7 days). However, there are certain other contingencies to be met, such as a home inspection and the signing of relevant documentation. But all things considered, a cash home sale is far faster. The seller gets the money more quickly which is always a major advantage.
#3 – Less Hassle
With a cash home sale, the homes are often bought as they are. The cash home buyers will pay for the property taking into account all the repairs that are necessary. These buyers are typically excellent ‘fixer-uppers’, understanding the ins and outs of home repair. This can be a huge relief for people who want to leave their property without delay.
With the cash home sale, there is no need to get a third-party appraisal. Not only is this timeconsuming, but it is also costly. When homes are sold without cash, it involves increased use of third parties. These third-parties are there as an added security precaution to protect all parties. Ultimately, the result is a more stressful selling experience that can be highly frustrating.
The degree of the hassle that comes with selling a home will largely depend on the choices you make. More paperwork can mean increased security at the end of the day. But it often results in more costs and more stress, so a tradeoff is evident.
#4 – Better Price
Many sellers are more than willing to choose a cash offer even if its lower than a traditionally priced one. This is because a cash home sale has a higher chance of closing. And if the home does not close, the price is zero. There are more stumbling blocks with a regular sale.
Of course, one of the biggest benefits of the cash home sale is the removal of a 6% agent fee. Selling a house using an agent typically involves a 3% fee for the buyer’s agent and the seller’s agent. This is an enormous cost that is eradicated when using a cash home buying service. This occurs when you sell the property for cash yourself without using an agent.
Selling a home in the open market can be quite intimidating. You really need to know how the real estate market works to confidently complete a home cash sale by yourself while getting the best possible price. You’ll also be responsible for the repairs, paperwork, negotiations, buyer vetting, and everything else that goes into selling on your own.
#5 – Increased Flexibility
With a cash home sale, there is invariably going to be more flexibility in terms of customization and negotiation. The most obvious of these is the appraisal, which is required by the mortgage company, but not required otherwise.
You can entice cash buyers with flexible offers. You could take some of the closing costs off the top, such as a title search. While this might seem counterintuitive, remember that the buyer has the cash and will be looking at various properties in the market. To get the benefit of the cash sale, you will often have to entice the buyer in.
Even with a cash sale, there are certain costs that need to be attended to. You might make a cash sale using an agent. In this instance, you will need to pay the agents commission out of your own profits. If a homeowners association is involved in the property, you will be required to disclose all fees to the date of sale.
How to Sell a House for Cash?
You can list your house for sale as cash only. But one of the best ways to sell your house in Lincoln is by using a cash home buying service. By using one of these services, you can ensure that:
- You don’t have to do any repairs.
- You don’t have to worry about proof of funds.
- You don’t have to pay expensive agent fees.
- You don’t have to worry about finding a buyer.
- You don’t have to worry about marketing your property.
- You don’t have to wait for your cash.
All of these are massive incentives for a cash home sale using an established home buying service. This is distinct from listing your property for a cash sale with a regular individual. These investors may not have the experience or be as reliable, even if they can provide proof of funds.
The beauty is that you get made an offer, and you decide how fast you wish to close, for the home that you have not yet even renovated. The power is put into the hand of cash home sellers, who don’t have complete any work whatsoever to close quickly.
Selling a house for cash has never been easier. In fact, selling a house has never been easier full stop. A local home buying service, like Element Homebuyers, is the most direct, easiest, fastest, and cheapest way to sell a home in Lincoln, Nebraska.