In 2021, the real estate market found homes selling for record prices. Inventory was often limited for buyers with smaller budgets. As a homeowner maybe you’ve asked yourself, is now the time to sell my as-is home for cash?
You might be worried about taking a cash offer if you’re trying to get the most money for your property. Working with a real estate agent and listing a property will net you a greater profit. But there are other costs to consider as well.
If your home is in need of expensive repairs, buyers will offer less in negotiations to reflect the cost of these repairs. These are things like leaks in your plumbing or roofing. Problems with your foundation and other structural issues are also costly to repair.
Fixing these problems yourself or hiring contractors is costly. No matter who pays for the repair, you or the buyer, the cost will come out of your profit from selling the property. A cash offer will also factor in the cost of repair, but without the headache of negotiating with contractors or real estate agents.
If you choose to list your home on the MLS and sell with an agent, then you will be responsible for various fees. Sellers pay the commission fees of the real estate agents involved in the sale. These fees usually average around 6% of the closing cost.
In addition to agent commission, you are also responsible for closing fees. Closing fees depend on the kind of mortgage you have, your lender, and where you live, but they vary from 3%-6%. This is another hit to your net profit from the sale of your property.
If you choose to sell to a cash buyer, both of these costs are eliminated or at least lessened. Usually, a cash buyer will pay any closing costs, and a real estate agent is no longer needed for the transaction. This is one benefit to think about when considering a cash offer.
The home selling process can be time-consuming. You’ll take on extra responsibilities to prepare your home to sell. You will lose out on rest and relaxation time, but also potentially lost wages as well from having to take time off work.
In today’s workforce, it’s common for people to work from home. However, many homeowners choose to leave during showings to give buyers a chance to make their own opinions about the property. Having multiple showings impedes not only your private time but your productive time as well.
When you list your home, you also take on the unofficial role of staging coordinator. Your real estate agent will be bringing prospective buyers in for showings, and you’ll want to give them the best impression of your property. This means extra time spent keeping house.
Additionally, if the property is not your home but instead an inherited or investment property, you will be responsible for making sure it is ready to be listed. This means estate sales, cleaning or hiring a maid service, and organizing repairs or donations. All of these can cost you money and cause stress.
Working with a cash buyer and selling your house as-is eliminates all these headaches. Some cash buyers are ready to close the deal in just a few days. You won’t have any showings, so no strangers will be coming into your home. If you’re worried about cleaning or repairs, as-is really means as-is. The cash buyer will handle the rest.
Probably not. If you want to get the largest amount of money for your home, then listing may be what you decide to do. But keep in mind that:
- Homes that need repairs will always be valued less than comparable homes in good condition.
- You will be responsible for real estate agent commission fees and closing costs.
- Listing your home using traditional methods is time-consuming and can be an invasion of your space.
If you’re ready to talk to a cash buyer to sell your home as-is, contact a team that uses a transparent formula to calculate a fair offer price. Remember, there are no costs to you, and they will ensure the process is painless.