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Real estate investors and house-flippers are more likely than traditional buyers to buy homes for cash. Companies like “iBuyers” also purchase homes for cash through online platforms. Don’t discount the possibility of a traditional buyer making you an all-cash offer, though. They might be able to afford it and simply want to make the investment in your property.
Step 2: Research your local cash buyer market
Consider using HomeLight’s Simple Sale platform to find reputable cash buyers in your area. HomeLight has built a nationwide network of hundreds of pre-approved real estate cash buyers and investors. We use your local neighborhood data and our extensive network to find the best offer for your home. But unless you sell to a cash buyer who plans on living in the home, Abdel says you could be giving up 10% to 15%. ATTOM Data Solutions reports that in Q3 of 2023, 72,543 single-family homes and condos were flipped, amounting to 7.2% of all home sales.
Skip repairs and sell “as is”
“The minimum return on investment varies depending on things like the market and the condition of the home, but typically we need at least a 10% return on a purchase to make it worth the risk,” says Van Soest. According to the company’s FAQ page, Opendoor typically buys homes in the range of $100,000 to $600,000, but in some cases will go up to $1.4 million depending on the market. Whether you want to move next week or stay put for a couple of months, a cash sale generally gives you plenty of wiggle room.
You’re in a hurry
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According to this guideline, a flipper won’t pay more than 70% of the “after repair value” (ARV) of a home, which accounts for deductions to make repairs and renovations. Some of the most popular and reputable iBuyers include Opendoor and Offerpad, as well as HomeLight’s nationwide Simple Sale platform. In August 2023, all-cash purchases accounted for 27% of all home purchases, according to the National Association of Realtors (NAR). There is quite a bit of paperwork involved in any home sale, so hiring an attorney to help make sure everything is in order is always a good idea, especially when it comes to making sure you have clear title. Depending on your situation, your sale could be subject to a capital gains tax, especially if you’ve owned the home for less than two years.
The Bankrate promise
As mentioned, a real estate agent can help list and market your home in multiple ways to get you the best all-cash offer possible. You don’t necessarily need a real estate agent to sell your home, but their knowledge and experience can make for a smoother transaction. If accepting an all-cash offer seems like a good financial investment for you as a home seller, the steps below will help you best understand how to sell your house for cash. If you’re feeling a little shaky about selling your home to a cash buyer, enlist the help of an experienced real estate agent or attorney who can provide guidance and direction. A cash buyer will wire the money or bring a cashier’s check to the closing.
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Some potential advantages include a faster sale process, avoiding the complexities of financing and appraisals, and receiving the full payment upfront without delays. However, it’s important to carefully consider the offered price, research the reputation of cash buyers or companies, and evaluate your long-term financial goals before making a decision. Consulting with a real estate professional recommended by HomeLight can help you assess whether selling for cash aligns with your situation. Simple Sale, a solution from HomeLight, is an online platform where sellers in California (and across the country) can request a cash offer for their home. Simple Sale has a network of cash buyers on its platform, and partner investors have a wide range of investment strategies, including fix-and-flip and buy-and-hold.
For home sellers working with a financed buyer, you’ll need to factor in an additional 45 days on average to close a purchase loan, according to data from Ice Mortgage Technology. With California housing markets heating up again in favor of sellers, going with an agent could pay off big time. Before committing to a cash offer, take the time to vet the company thoroughly. This means checking online reviews, reading testimonials, and researching their market presence and past performance.
However, rates are still hovering around 6.6% (as of late January 2024), making it challenging for some prospective buyers to qualify for a home loan. Lenders almost always require an appraisal to fund a property purchase, and this step has become more time-consuming since the pandemic due to a backlog of appraisal requests. An increasing number of people will sell their homes, make a significant amount of profit, and then put that money toward the purchase of their next home.
Below you can hear about how Baohan Wu, a seller who used Simple Sale to sell his high-rise apartment, closed within three and a half weeks and what he thought of the process overall. However, while the convenience is appealing, it’s important to be aware of the trade-offs. The most significant downside is receiving less than the market value for your property. This could be crucial, especially if maximizing your sale price is a priority. SoCal Home Buyers specializes in acquiring various properties, from single-family fixer-uppers to turn-key multifamily homes.
While price tends to take center stage, many other components of an offer should be considered before entering into a contract. If you’re thinking about selling your home to one of these businesses, you’ll start by contacting the company and providing some basic info about the home. Many companies will then schedule an in-person visit from a representative to assess the property, but some businesses do everything online. Addressing repairs before listing your home can prevent a potential deal breaker for a motivated buyer during the negotiation phase. According to HomeLight, selling a home as-is, with repairs necessary for move-in, tends to result in aggressive price negotiation or even withdrawal of offers. It wants to purchase your property at a discount and turn it for a profit.
HomeLight provides you with a convenient, no-obligation all-cash offer to buy your home, on your timeline. This could stem from an increasing number of retail buyers choosing to make cash offers as a means of winning bidding wars. Flippers often embrace a home or situation that other buyers find unattractive. Buyers who can make all-cash offers are doing so to avoid higher mortgage rates.
Homeowners can submit their property details online or through a phone call. The company will assess the property, and if interested, make a cash offer. Upon accepting the offer, the sale can be completed in a matter of weeks, allowing homeowners to bypass the traditional selling process. Because We Buy Houses for Cash companies tend to focus on distressed homes, they typically have zero fees. In most cases, this means that the cash offer you receive is going to be the price you walk away with at the end of the deal. Of course, it’s always a good idea to flat-out ask the company if there are any hidden program fees that might impact your bottom line.
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