If selling a house quickly is your biggest priority, working with a cash buyer can be the answer for which you have been searching. It is always important, though, to weigh the pros and cons. So let’s do just that.
Pros of Selling a House Quickly
- It’s… Quick. To state the obvious, one of the major benefits of choosing to sell to a cash buyer is that you significantly accelerate your timeline. It takes an average of four to six months to complete a conventional sale – if you are lucky. Any number of factors can slow this down, from needing to make key repairs (more on that in a moment) to having the buyer’s financing fall through. There is nothing more frustrating than seeing the finish line just ahead… and then having to start back at the beginning. A cash sale can be completed within days (typically from just seven days to about two to three weeks).
- You can skip the expensive repairs, improvements and upgrades. With this type of sale, the buyer accepts the property in as-is condition. Because they do not need a mortgage, they do not have to adhere to the stringent standards of lenders. Even the most distressed properties have some value. This can save you thousands to tens of thousands of pounds.
- You eliminate fees. Selling a house can be expensive! We tend to think of the profit we can realise when it’s all said and done – but before we get there, we have to pay the estate agent, the solicitor and/or conveyancer, the surveyor and valuations experts, the repair people and contractors (if we need to fix the property up), the staging, the marketing… There’s a lot of what seem like relatively small expenses that add up quickly and significantly. With a cash buyer, they handle all of the logistics – and costs. If you choose to use your own solicitor, you certainly can. Some buyers will even give you a stipend towards that expense.
- The work is done for you. As mentioned, selling your house as-is can save you untold amounts of both time and money. And, it must be said, a great deal of aggravation and stress! Further, though, you do not have to worry about the myriad of details involved in a sale. From marketing, staging and showing a property to arranging conveyancing and solicitors, shuffling paperwork and attending to never-ending legal technicalities. The buyer handles this. Meantime, you focus your energy and attention on packing up, removals and planning your next steps.
- You receive a cash deposit quickly. It can take months to see a cheque when you sell via a traditional route. With a cash buyer, you can have funds deposited directly into your account in days. When time is short, this can be a true game changer.
Cons of a Quick Sale
Selling a house quickly sounds beneficial – and it may well be the best option given your unique situations and goals. However, it is important to always weigh the advantages against any potential disadvantages.
- In most cases, your offer will be below market value. Cash house buyers typically offer 75-80% of total market value, while some go further to as high as 85%. Still… If you put your house in the market and waited, could you get 100%? Higher? Perhaps. But consider all of the expenses associated with repairs, with fees, with waiting. There is no guarantee you will get market value or above – and if you do, you must deduct the costs we’ve discussed. With a cash buyer, that’s your cash. You know where you stand when you get your final offer and it is up to you to accept or decline.
- It is essential you work with the right buyer. Not every buyer is a dream come true. Some, in fact, can be real nightmares. As with any service or solution, you must do your research and select a reputable company. Check reviews and ratings, verify financial standing and be sure you are comfortable proceeding.
- Do they really buy any house? Yes… But there’s a rare instance (we must emphasise that this is highly uncommon) where an offer is rescinded. By and large, though, the vast majority of properties do have some value and can attract the right buyer.
When selling a house quickly, be sure to evaluate your options and weigh the benefits versus any potential disadvantages.