For the first time in a long while, the US housing market seems to be cooling down. According to Redfin, just 12% of homes that are listed with Redfin are generating bidding wars between buyers. That number is down from 52% last year. That’s a huge decline!
A cooling housing market doesn’t mean a bad housing market though. Real estate prices continue to trend upwards, just at a slower pace than in years past. That means that now might be the perfect time to cash out of your investment before the market slows even further.
Below, we outline some considerations of selling a home in Austin, TX or in other areas to cash buyers.
Considerations for Selling Quick For Cash
There are a number of advantages to selling your house to cash buyers. Here are a few of the main ones.
The primary advantage when it comes to selling your house to a cash buyer is the speed in which transactions take place.
The home selling process is typically a process of “hurry up and wait”. There are many hoops to jump through and those take time. When you sell to a cash buyer, you bypass almost all of the hassles and skip directly to making a deal and getting out of your house quickly.
You Get to Sell As-Is
In competitive housing markets, selling your house in a “less than perfect” condition can be complicated, expensive and time consuming. Because of that, before putting your house on the market, you’ll likely be advised to fix it up to fit modern buyers’ expectations.
If spending the money and taking the time to rehab your house before selling it sounds like more trouble than it’s worth, opt-out of that process and sell quick for cash.
Cash buyers in Austin, TX and in other major cities across the country will make an offer on your home no matter its condition.
Avoid Agent and Bank Headaches
Interviewing agents, working with them, letting them go, re-interviewing agents… It’s all a giant headache. On top of that, you’ll need to pay them a hefty commission once your home sells.
Add to that the annoyances that banks bring to the home selling process with their contingencies and appraisals and it becomes clear how complicated and demanding 3rd parties can make selling your house.
When you sell to an investor for cash, you get to ditch dealing with agents and banks which means less stress and hassles and a quicker sale!
A Much Lower Risk of Your Sale Falling Through
We touched on banks in our last point and the contingencies they tend to bring to home selling. What you may not be aware of though is that if your home fails to meet any of a bank’s many contingencies, it can mean your buyer may back out of buying your house.
It’s possible that you could spend months tying up your house for a buyer, only to have their bank pull their offer out at the last moment for any number of reasons.
Since cash buyers don’t use bank financing, you don’t have to worry about banks and lenders coming between you and your buyer.
You Can Get a Great Offer
There’s a common misconception when it comes to selling quick for cash that sellers get bad offers. That’s simply not true.
Well-respected cash buyers are able to do what they do because they make fair offers on homes.
Never predispose yourself to the idea that you’re going to get less than you deserve when doing business with a cash buyer. Most buyers will give you a free, no-strings-attached offer on your home, so letting them tell you what they’re willing to pay is usually worth your time.
There are a couple of things to keep in mind when selling your house for cash.
All Cash Investors Have to be Able to Make a Profit Somewhere
It’s true that if you let your house sit on the open market long enough, a buyer could come along and make you an offer that exceeds what a cash buyer offers. If you have the time to let your house sit on the market and don’t have a reason to sell fast, you may be able to get top dollar.
When you consider repairs, agent fees, closing costs, your time and hassles, and more, that offer may get close to or even come in below what a cash buyer is willing to offer. Cash investors buy as-is, meaning they do all the repairs, they pay the closing costs, and they pay the commissions once they sell the house.
When a cash buyer makes an offer on your house, they have to consider all these costs plus make a small profit. For example, on a $250,000 house, you’ll pay $15,000 in commissions, approximately $5,000 in closing costs, up to $500 for a home warranty, and potentially even more when the buyer asks for repair contingencies after their home inspection. That’s easily over $20,000 off the sales price!
And if your house doesn’t appraise, you have to either renegotiate or accept the appraisal price.
Many sellers either don’t know about these significant costs and headaches or forget that a cash buyer is eliminating them altogether for the seller.
Finding Cash Buyers Could Be a Challenge
Depending on where you live, finding reputable cash buyers might be a challenge. Bigger cities like Austin, Las Vegas, Atlanta and others tend not to have this problem. There are cash buyers in almost every city – it may just take more effort to locate them.
Always be cautious of people who offer something that sounds too good to be true. As with other things in life, if someone offers you cash for your home and it seems too good to be true, it probably is. Take your time to do your due diligence. Check out website reviews and don’t be afraid to ask for references.
Our Final Thoughts on Selling a House for Cash
As we’ve outlined above, there are a number of things to consider when it comes to wanting to sell quickly for cash. In our opinion, it can be a lifesaver to find someone to purchase your house fast for cash.
At very least, based on the information we’ve shared, hopefully you have more information about selling to cash buyers.
If you’re in the Austin, TX area, there’s no better place to get an cash offer from than LisaBuysAustinHouses.com.
Lisa Buys Austin Houses has helped many home sellers cash out of their houses. Whether your house is turn-key, severely distressed or anything in between, Lisa or Sean will make a fair, stress-free offer on it that you’ll 100% want to consider!
Learn more about how to get your no-pressure home offer by clicking here now!