The quickest and easiest way to get your property sold fast is to sell your house for cash.
Why Sell to a Cash Buyer?
In a conventional (retail) sale, a mortgage lender may take 30 – 45 days to close and fund, with the possibility that the transaction could fall through at the very last minute.
Unlike a conventional sale, a cash buyer won’t have to wait for a lender to approve the sale. Also, most investors are willing to pay cash for houses fast and are also willing to cover any additional expenses to buy the house such as back payments, tax liens, closing costs, etc.
Cash buyers will buy the house AS-IS, meaning you don’t need to repair or clean the house before selling.
The downside of selling to a cash buyer is that the cash buyer buys the house to make a small profit, which means they need to cover all their expenses and still have room to make money.
Here’s what this means to you:
- Closing Costs on the purchase are approximately 2%.
- Resale Commissions will be approximately 6%.
- Closing Costs on the resale will be approximately 3%.
- Monthly Carrying Costs will vary but may possibly be around 5%.
- Cost of repairs is the hardest to estimate but could be $5K, $25K, $60K, maybe more, depending upon the condition of the house.
Without the cost of repairs, the above example factors a cost of approximately 16%. For the cash buyer to make a profit on their house, they have to offer somewhere between 50% – 65% of current market value.
Cash offers are ideal for anyone who has equity in their house and needs to get out FAST. For a seller with little to no equity, this option means bringing a large sum of money to closing which likely is not an option.
Of course, if this option is not ideal for you, there are numerous other options that may meet your needs.