You may have to pay closing costs when you sell your home with a realtor. You can save money by selling directly to a cash buyer. Closing costs are reduced because you don’t have to pay any lender fees.
In some cases a buyer might not get their loan application approved. It’s unfortunate when the buyer can’t close because they didn’t qualify for the loan. In which case, they essentially have to back out of the sale. You would then have to find another buyer, extending the sales process. Cash buyers already have their funds prepared to buy your home and you’ll receive a solid offer that will be fulfilled.
Foreclosure will severely dent a homeowner’s credit score. Per FICO, a drop of 85 or 220 points occurs due to foreclosure. This has a significantly negative impact on a homeowner’s credit score that most will try to prevent. This major credit score drop can be avoided with a brief sale to a cash buyer.
Cash buyers can really benefit sellers who want to avoid foreclosure and need to sell their home now. Plus, selling your home this way significantly reduces the amount of paperwork that needs to be completed during closing.
You don’t have to worry about the possibility of a cash sale falling through because the buyer did not have their finances prepared. Realtors have commission fees around 5%-6% of the home’s sale price. If you can sell your home without the assistance of a real estate agent, these fees won’t exist. also learn about the benefits of Solar Shades Phoenix here.
Someone who is able to provide you with a cash offer on your home is a stronger buyer. They will close on the property sooner, allowing you to get to your funds and make your next move after the sale, whether that’s keeping the funds or purchasing a new home. You can rest easy knowing the buyer is vetted and can show you a proof of funds.
USDA and FHA mortgage loans require the borrower to purchase a home in a certain condition or in a specific area. Alternatively, cash buyers are able to make an offer on any house they like.