Cash Offer

This is the quickest and easiest way to get your home sold FAST.   Unlike a conventional sale, you won’t have to wait out the lender which may take anywhere between 30 – 45 days to close and there’s always a possibility it could still  fall through at the last minute.  Also, most investors who are willing to pay cash or also willing to cover any additional expenses to buy the home such as back payments, tax liens, closing costs, etc.  Cash buyers also don’t care about the condition of your home and will buy the home AS-IS.

The downside of a cash buyer is that they are buying the home to make a small profit which means they need to cover all their expenses and still have room to make money.   Here’s what this means to you:

  • Closing Costs on the purchase are approximately 2%
  • Resale Commissions will be approximately 6%
  • Closing Costs on the resale will be approximately 3%
  • Monthly Carrying Costs will vary but may possibly  be around 5%
  • Cost of repairs is the hardest to estimate but could be $5K, $25K, $60K, maybe more

Without the cost of repairs, the above example factors a cost of approximately 16%.   That means, for the cash buyer to make any kind of profit on your home, they will have to offer somewhere between 65% – 75% of current market value (after repairs).

Cash offers are ideal for anyone who has equity in their home and needs to get out FAST.  However, for a seller with little to no equity, this option would mean bringing a large sum of money to closing which likely is not an option at all.

Of course, if this option is not ideal for you, there are numerous other options that may meet your needs.