The Pros and Cons of Selling Your House to a Cash Buyer

In the first four months of 2021, 30% of all home sales went to a cash buyer. This is a huge increase from previous years.

Lately, more and more people are seeing the appeal of selling their houses for cash. However, doing this is pretty different from the more traditional selling experience and it’s something you need to think about carefully.

If you’ve been thinking about selling your home to a cash buyer, read on to take a look at the pros and cons of doing so.

The Pros of Selling to a Cash Buyer

There are many advantages of selling a house to a cash buyer. It’s important to take them all into consideration.

No Staging Necessary

If you’re planning on selling your home through the traditional route, you’ll have to hold viewings. People will come and decide if your house is the right one they want to take on a mortgage for.

For these viewings to be successful, staging is usually necessary. This means deep cleaning and decluttering the house, as well as depersonalizing it so others can see themselves living here. 28% of realtors will stage a home before selling, as they know it sells the house much faster.

When selling to a cash buyer, it isn’t necessary to make your house look its best. This might be a huge relief if you have pets, children, and often have a mess around the house they can’t always control! 

Faster Processing

When selling a home, the closing process can take a long time. There’s a lot of paperwork to go through and there are often setbacks when it comes to repairs needing to be done and negotiations.

That’s not to say that when you sell your home for cash, it’s done within a day, but the process is usually significantly shorter. 

This can make a huge difference if you need the money quickly, or need to be out in a short amount of time.

No Strangers in Your House

Another huge advantage for some people is not having strangers walking through their space for viewings.

It’s not just staging the house that’s a huge disruption. People may want to drop by on short notice for viewings.

You either have to leave quickly or be around while strangers mill around. This can happen for weeks on end if your house is taking a long time to sell, and can be very anxiety-inducing for some people who aren’t a huge fan of having strangers in their space.

Less Fuss

When a home buyer is looking to move in, they may be very picky about what they’re looking for. They may not want a certain layout, for example, or certain features that are non-negotiable.

Cash buyers are far less likely to be fussy. As they may be about to flip the house — and certainly aren’t likely planning on living there — strange layouts and odd features aren’t much of a deterrent to them. If there’s something about your house that’s out of the norm, you don’t need to worry about it as much.

The Cons of Selling to a Cash Buyer

Although there are many advantages to selling your home this way, there are some disadvantages even with the best cash buyer.

Make sure you’re considering these carefully when making your decision.

Price Is Lower

Because the businesses purchasing your home for cash are out to make a profit, you can expect a slightly lower price than what your home may get from someone willing to move in and take on a mortgage.

If your goal is getting the most money for your house possible, this may not be the best route for you.

The company may plan on flipping your house or tearing it down completely and building a new one. You never know what they’re planning, but chances are, they’re buying your house to make money. That means they aren’t going to pay too much for it.

Fewer Options

There are far more home-buyers out there looking for a place to settle down than there are cash buyers.

If you have people interested in your home and willing to make an offer, you might find that you get multiple offers. They might even get into a bidding war, putting you at a huge advantage.

Cash buyers are much less likely to do this, as they have much less competition. There simply aren’t that many businesses in any given area looking to buy houses — at least not in the same numbers as regular home buyers.

You Might Still Be Asked to Negotiate

Although the process is usually shorter than selling your home to a traditional buyer, you might still have to enter negotiations. It isn’t a guarantee that it’ll be as simple as accepting money, handing over keys, and that’s that!

If there are any repairs required, the cash buyer may ask you to make them before officially making their offer, for example. 

Should You Sell to a Cash Buyer?

So should you sell to a cash buyer? That’s a question only you can answer. 

The important thing is to take a look at the pros and cons to make an informed decision. If you want cash quickly and don’t mind that you may be accepting a slightly lower price for the lack of hassle, it’s a great thing to look into. 

If you don’t mind a long process and want to get the best price possible — even if it may not be in cash — you should consider other options.

Have you looked at cash buying and think it might be for you? Contact us today — we’re a trusted buyer in Austin. We’ll buy houses in any situation.