It’s no secret that cash buyers have been taking over the housing market, for now. But what may be surprising is that this trend is no longer limited to just distressed homes. Sellers increasingly choose the option of “sell house for cash” to speed up the sale process and maximize profits. So what’s driving this shift? Read on to find out.
Cash Is Saturating The Housing Markets Across The Country
According to a recent report from ATTOM Data Solutions, cash sales accounted for more than a third of all single-family homes in 2018, and they don’t show any sign of slowing down.
Cash purchases seem especially attractive for buyers in today’s housing market, where houses are quickly snapped up. Cash buyers can act quickly via their checkbooks to buy homes before others even know the home is on the market. After all, most sellers will prefer to have the sale over with as quickly as possible, rather than waiting for a buyer with a more significant offer that has to wait for their financing to come through. And thanks to instant sale platforms, sellers can quickly and easily list their homes, and can receive offers within 24 hours!
What Are Your Options For A Cash Offer?
There are a few options for those looking to sell their home fast and for cash. Buyers’ popular options to buy homes include online home sale platforms, rental investors, the open market, and iBuyers. Here is a more detailed look at each of these options.
Online home sale platforms
There has been an increase in the popularity of simple-to-use platforms that provides sellers with an all-cash offer. For instance, using its online platform, Bonnie Buys Houses Fast can buy your house as quickly as seven days without agent commissions or upfront selling costs. It provides an offer based on the information you enter about the condition of your home, its repairs needed, and your timeline.
Sell your house to an iBuyer
The trend of iBuyers/instant-buyers is getting bigger and bigger as the market demands speedier transactions. An iBuyers is a company that uses algorithmic technology that quickly determines an offer for your house. The platform may ask you to take photos of the exterior and send in updates about any repairs needed before receiving your all-cash offer. Compared to traditional house flippers, iBuyers tend to buy only the homes in good condition and sell them at a higher price point. Some of the top iBuyers in the US include Opendoor, Knock, and Offerpad.
House flippers
House flipping doesn’t need to include a complete renovation, but it often includes some repairs and cosmetic changes. Flippers often make capital improvements like adding a new kitchen and laundry appliances and changing the flooring or paint colors to increase the home’s value. Flippers will typically offer cash at a discount since they assume a lot of risk in buying a house as-is and taking on the work involved to fix it up. So, their offers rarely go much higher than 70% of the home’s estimated value after the work is done.
Buy-and-hold investors
Some buyers will pay cash for your house to use it as a rental property. Since their interest is in rental income, buy and hold investors will look for locations in high demand for renters. If your property is ideally located near shopping centers, public transportation, and amenities, it will make an excellent buy for a buy-and-hold investor. These buyers often secure a cash-out refinance that pulls money out of the home to further their investments. This method will free up their money to purchase more properties in the market, thus growing their real estate portfolio.
Persons with access to cash
In addition to seasoned real estate investors and retail buyers, some buyers may have access to cash that enables them to transact without a lender; This could include:
The creative buyer
People are using creative means to purchase on a cash basis. From leveraging retirement savings to borrowing from friends and family, agents are seeing a growing number of options for these buyers.
The extreme saver
Frugal buyers may use cash to purchase a home. Some of these buyers came from yesteryear when people saved their money for payments like their car. These buyers are not-for-profit, to own a home.
Equity reinvestment by buyers
Many people, including retirees, are opting to cash out of one house and use that money for what they are looking for in the next move. They will then use the equity towards their new home. For example, someone moving into a retirement community may cash out of their primary house and use that money to pay for their new but cheaper home, Thus gaining equity.
Do agents work with cash offers?
By connecting sellers with iBuyers, real estate agents enable their clients to get cash offers on their homes.
Cash house sales: reasons to do it
Now that we have more people with access to cash, are there any benefits to selling your house for cash? Yes, there are! Let’s look at a few of them:
Cash sales are probably the best option for you if you need to make a quick sale and want the cash as soon as possible. For instance, if you face foreclosure and need to sell your home immediately, a cash sale is often the only option. Lenders always need to appraise a home before lending against it, which may take time, so if you need the money quickly, a cash sale is probably your best bet.
Cash sales are becoming more common in the real estate market, as buyers look for ways to get a quick and easy transaction. There are many reasons why a person might choose to sell their house for cash, but some of the most popular reasons include needing to make a quick sale or wanting to receive the cash immediately. If you’re thinking about selling your house, it’s essential to understand all of your options, including how a cash sale could benefit you. Let us know if you have any questions by visiting our website at https://bonniebuyshousesfast.com/
Bonnie Buys Houses Fast,
11605 Meridian Market VW Unit 124 #243
Falcon CO 80831
719-659-9979
