When I was planning to sell my house, a coworker of mine recommended choosing a cash home buyer.
I mentioned this option to my brother, who warned me that I would get considerably less money for the property.
I decided to do some research. I learned that working through a cash home buyer eliminates a great deal of costs. Real estate agent fees can be anywhere between three and six percent. There are also lawyer fees, home inspections, appraisals and closing costs to cover. In most cases, the home inspection uncovers issues that need to be fixed. The inspection verifies the safety, integrity and reliability of essential systems such as the HVAC, plumbing and electric. It checks everything from the roof to the water heater and foundation. Termite damage, mold growth, an outdated electrical panel, a remodeling project that wasn’t permitted and all sorts of problems can end up costing a small fortune. With a conventional real estate listing, a potential buyer will most likely seek lending from a bank. They bank with demand for appraisal and inspection. If the appraisal comes in lower than anticipated, the bank won’t lend sufficient funds. If the inspection turns up concerns, the bank will require repairs. The cost of the repairs will come right out of the sellers pocket. Plus, there is the need to schedule with a licensed contractor. Repairs are messy, disruptive and time-consuming. I really wasn’t eager to invest into a new roof or new HVAC system in a house that I was preparing to sell. I found that the cash offer was not so far off from the amount I’d hope to get with a traditional real estate listing. I liked the advantage of a speedier and no-hassle sale. A cash buyer can wrap up a sale in seven to ten days.