People consider selling their houses for cash only when they face bankruptcy, foreclosure or relocation. There are, however, plenty of other good reasons why you should buy or sell a house for cash.
* Quick Money
There are different avenues for selling a house which include selling to a bank, selling to an agent and selling your house on cash basis. Amongst these, selling your house quickly is the one that offers you an avenue not only to sell house fast but also to get money within the shortest period of time possible. The time limit for striking a deal will basically depend on the state of your house and how appealing it is to potential buyers.
Buying or selling a house for cash is convenient because all the agreements are made upfront. Since homeowners buying for cash know the risks involved and the money may not be refundable, they will scrutinize the house thoroughly and get satisfied before paying for it. It is however important that when buying or selling a house on cash basis you keep proof of all money transactions. Although you are likely to get a lower offer when selling it quickly, this is way better and more convenient that getting an offer from a seller who may want financing and will take longer to close the deal.
* No Need for Lender Approvals
It is easier to sell a house fast when a lender is not involved in the process because little documentation or proof will be needed. When buying a house or selling for cash, there are no contingencies, thus making the whole process faster and less stressful. Since cash sales don’t need financing, you can close a deal faster depending on the survey, title and other minor factors.
* The Final Offer Is Dependent on Your Bargaining Power
While equity purchasers (quick sale purchasers) will offer you the amount of money you need when in a financial crisis, they are merely taking opportunity of your situation. When buying or selling a house for cash the final offer will largely depend on your bargaining power. You will still get less than what you would have through lenders or a bank, but you will definitely get more than what equity purchasers will offer you.
* Disadvantages of Buying or Selling a House for Cash
The main disadvantage of selling or buying a house for cash is that you will get less than the amount you would have gotten through other means. Whether you’re considering a cash deal or another, it’s very important that you negotiate a lease-back where it’s possible. What this means is that if you’re selling a house quickly, you will receive all the payments before relocating or moving your things. There are a lot of deals that fail in the last minute. Without a lease-back, you are vulnerable to being stuck with the rent or mortgage for the current house, and that of the house you have moved to.