Are you wondering if you should sell your house for an all-cash deal? Chances are you want to sell it quickly and may need the money to pay off a debt or make another big purchase. Or, you may be wanting to avoid the contingencies of going through with a traditional mortgage. Whatever your reasons may be, it is important to fully understand what an all-cash house offer is, and how it may benefit or hinder you as you sell. Here’s all you need to know, plus some helpful advice.
What Is an All- Cash Offer?
If you’ve never heard about an all-cash offer, here’s how it works: A buyer (usually an investor) will purchase a home for its full amount, then sell it for a profit. They can use a non-financing clause or an all-cash-offer clause. In both situations, the buyer does not need to put up a mortgage to finalize the sale of the home. However, this is no easy feat. Although 21% of residential sales are all-cash transactions, and 13% of those are investor transactions, there are certain processes that apply that can be complicated. The buyer needs to do their due diligence to ensure they can handle such a big commitment.
Why would someone seek to buy a home with an all-cash offer? Here are three reasons.
- The seller’s offer is more attractive to the buyer
- A better deal can be made
- There won’t be the same hassle of getting a mortgage.
Pros of an All-Cash Offer
No Risk of Sales Falling Through
All-cash sales eliminate the risk of losing the interest of the buyer last-minute. Once you have the cash, there’s no backing out or stopped financing payments. You have what you agreed upon, and so does the buyer.
The traditional route of selling your home with an agent and the multiple listing service (MLS) does not guarantee that your home will sell. You may have the right price to get offers, but it may still take months to get the deal you’re looking for. It takes on average about 65 days to sell a home, according to data, but this depends on location. If you need the money fast, selling on your own with an all-cash offer is your best bet. Direct and online homebuyers can get you an offer in a fraction of the time. All-cash buying allows the seller to skip home preparations, showings, and hassles and can flexibly sell their home when they need to before moving into their new home.
Traditional home sales come with contingencies, and most buyers will want an additional mortgage contingency and possibly an appraisal contingency. These can all delay the sale of your home. With an all-cash sale, you save time by avoiding these contingencies.
Cons of an All-Cash Offer
You Don’t Know Who Is Buying
The caution for anyone looking to sell their home for cash is that not every buyer is trustworthy and honest. Before you work with a buyer, do your due diligence and ensure they are reputable. If you get any sense that they are untrustworthy, don’t accept cash for your home. Especially since many all-cash offers come from online, the risks are higher that you won’t know who is offering to buy your home.
If your primary concern is getting top dollar for your home, an all-cash deal might not be the best option. Investors buy homes to resell them, and it would not be profitable for them to pay top dollar for every home. To make a profit they need to try to get a low price for the home and eventually sell it for more than that.
Things to Check before Accepting an All-Cash Offer
Get Professional Advice
Before accepting an all-cash offer, protect yourself with the help of a real estate lawyer. They will ensure you navigate this seemingly simple process carefully, to ensure the buyer is trustworthy and keeps up their end of the deal. A professional real estate lawyer can also help you get the right price for your home and guide you as you look for a new home.
Scams Happen in All-Cash Deals
An all-cash deal may be very attractive to you if you need to leave a home due to a divorce, foreclosure, bankruptcy, or employment transfer. However, you still need to do your homework as scams are likely to occur. A professional real estate lawyer can help you to ensure your credit history is secure, and that you do not pay any unusual fees as you try to accept an all-cash offer.
Choose Zinati Kay – Real Estate Lawyers When Selling Your House
Looking for the right real estate lawyer to help and guide you as you sell your home with an all-cash offer? We’re here to help you. Zinati Kay – Real Estate Lawyers is a full-service residential real estate law firm that provides fixed closing costs to our clients when they buy, sell, mortgage, or title transfer their property. We have over 22 years of experience helping clients navigate the complex process of buying, selling, transferring title, or refinancing their mortgage.
At Zinati Kay – Real Estate Lawyers, we help buyers and sellers with their real estate actions and offer our guidance and services to make the process more straightforward. We have closed over 20,000 real estate transactions to prove it! We provide professional service and reasonable real estate lawyer fees and have thousands of satisfied clients who would agree.
If you want a professional real estate lawyer at your side as you buy, sell, refinance, or title transfer your property, contact us at (416) 321-8267 for more information about our services.