If you’re a homeowner in San Luis Obispo and are looking for a way to quickly profit from the current housing market, you may want to put your home on the market. While you may think selling your home requires months of work, selling your home to a San Luis Obispo cash buyer allows you to close a sale in a matter of weeks or even days.
Not sure if selling your home for cash is right for you? Read on to find out more about the benefits and your options.
What is an all-cash offer
All-cash offers in the real estate industry consist of a traditional buyer who has the liquid assets to pay for a home in cash. Buyers often pursue these types of sales because they don’t have to worry about monthly mortgage payments, and also they may see favorable tax implications.
Cash buyers frequently consist of investors who flip or rent out properties, homebuyers who are downsizing and have funds on hand from their property sale and buyers who are backed by a cash-purchase product who have a lender that makes a cash offer on their behalf.
Other types of cash buyers include iBuyers which are companies that use proprietary algorithms to process publicly available information (tax records, price history, etc.) and formulate an offer for a property. Sellers typically pay a 5%-6% fee for these types of sales.
A smoother transaction process
Selling a home to an all-cash buyer offers many benefits to sellers that revolve around speed, convenience, and simplicity. For starters, when you sell a home for cash you can get paid for your property in a week or two rather as opposed to months with a non-cash buyer. This is because mortgages are one of the main bottlenecks in the home selling process as they take 43 days on average to process, in addition to the time required for an appraisal.
Since all-cash home sales are as-is, you benefit from not having to maintain a spotless property for open house events. You can even skip costly repairs that would block a traditional sale.
It can be more cost-effective than a traditional sale
While all-cash buyers frequently make lower offers than traditional homebuyers, sellers still benefit from numerous cost savings. For example, many home-buying companies will cover the full closing costs associated with the home sale. Considering how these often amount to 9%-10% of the home’s value, the savings can easily offset the lower offer price.
Another point to consider is that all-cash sales have much lower carrying costs than traditional sales. Carrying costs include utilities, taxes, insurance, maintenance, and other fees. Depending on how the real estate market is going, it can take as long as six months to sell a home and even longer to get the equity out of a property. When you make an all-cash sale, you’ll have immediate peace of mind that the sale is done once the deal closes.