In hot real estate markets, cash offers are often the first bids that sellers consider. In fact, according to ATTOM Data Solutions, about a quarter of home and condo sales in 2018 were cash purchases.
Buying a house with cash can be a great way to save money and avoid some of the hassles that go along with purchasing a home with financing. However, it’s important to be aware of what’s involved and how much you should expect to pay.
The amount you can save with a cash offer depends on your home’s price and the market you are in. You may also find that it helps to have more money available in case you need to cover extra costs like taxes, homeowner’s insurance, or moving expenses.
If you have a strong financial history and are able to provide documentation to show you can meet the requirements of your potential purchase, an all-cash offer can help make your home sale more competitive. Moreover, it can help you beat out buyers who are looking for financing.
Making a cash offer on your own can be challenging, especially if you don’t have a lot of capital. Fortunately, there are companies that can offer you a chance to get your cash offer accepted quickly and easily.
These services are gaining popularity because they are more likely to get your offer accepted than traditional cash buyers. Rather than going through the traditional process of finding and negotiating with a real estate agent, you can submit your all-cash offer to the company in minutes and they will give you an estimated value of the property.
The same company can also assist you with your offer by helping you negotiate for the best possible terms. For example, they can provide you with a list of comparable properties in your area to help you determine how much the home is worth. They can even help you calculate your closing costs and estimate your mortgage.
You’ll also need to factor in the cost of getting your home ready for sale if you choose to sell it yourself. This includes painting, repairs, and other home improvements. It can also include things like a new roof or siding.
Unless you’re selling the property as a short-term rental, you will have to pay for any ongoing homeownership costs, including utilities, home repairs, homeowners’ association fees, and taxes. Depending on the area, these costs can be substantial.
Another benefit of a cash offer is that it is usually easier to close than a conventional deal, which can take longer and include a lot of paperwork. This is because there are no appraisals, escrow, or lender fees that would be associated with a conventional sale.
A cash sale could be a good option for a home that needs repairs or renovations that may not be affordable with a mortgage. For instance, if you have an older home that is in need of extensive remodeling or structural damage, a cash sale can be a good idea.