A no-nonsense review of home cash buyers: The good and the bad

A no-nonsense review of home cash buyers: The good and the bad

Let’s start with our conclusion: selling to a home cash buyer is not black and white, “Amazing” versus “Don’t touch it with even a barge pole.” Instead, it boils down to two fundamental drivers, which should align perfectly. They are:

1. Your reasons for selling.
2. If your reasons make sense to sell for cash, who you select as a buyer

In many instances, the logic and forethought behind seeking a cash deal may be sound, but (2) above goes off-track and upsets the applecart. We cannot emphasize enough that your outcome will only be as strong as the weakest link. For example: If everything points to a realtor as your ideal marketing channel and you select a cash buyer instead, no matter how good the latter’s offer is, it’s probably less than top-dollar. Alternatively, selling to the wrong entity for cash with all the right reasons behind you will end the same way. Therefore, you must get (1) and (2) above working in unison.

The best reasons to go for home cash buyers

1. “As is’ ‘home conditions can range from “unlivable” with damage the homeowner doesn’t have the cash resources to remedy to “livable” but still in severe disrepair to “fix-ups” only a detailed home inspection will uncover. Please note, the rectification cost may be inhibitive even in the latter instance (e.g., mold spread in the air conditioning or behind the walls). Simply put, homes with a poor aesthetic appeal (curbside or interior) are generally not for partnering with a traditional realtor. Likewise, if you’re aware a home inspection will reveal expensive-to-fix gremlins, you probably don’t want to go through the hassle or see a good offer diminish to a poor one. Thus, a cash option looks promising, given the described circumstances.
2. Tenants in the property can be excellent or troublesome. A realtor is the way to go if the real estate conditions encourage buyers to invest for rental income. For example, a few HOAs structure themselves around liberal renting policies that make it easy for owners to lease without jumping through hoops. Conversely, many HOAs make continuous leasing extremely onerous by imposing strict limitations on homeowners in the community. In the latter case, a cash buyer is a viable option to unravel sticky leases. Also, suppose the tenants are not maintaining the home as they should or are behind on their commitments. Home cash buyers routinely sort those matters out and won’t discount the offer based on a bumpy tenant issue.
3. Assuming the home is in reasonable condition and not suffering from any above-mentioned pitfalls. In a sellers’ market, undoubtedly, a realtor will get you the best deal – perhaps drawing keen buyers into an auctioning channel. Also, an agent in your corner makes sense in neutral markets where you’re in no rush and willing to see the highest price the market will bring. On the other side of the coin, a buyer’s market generally ushers in the cash buyer alternative for a favorable review.
4. However, there’s one massive consideration no matter how buoyant the markets are, and that’s “time.” Realtor processes can take two months and longer before a closing occurs. However, some situations call for quick resolutions, faster than the expected market pace. Typical examples are as follows:

• Divorce
• Inheritance
• Liens on the home.
• Anticipating falling behind on mortgage payments.
• No patience for attending to curb appeal, staging, decluttering, and minor renovations, etc.,
• Transfer by your company to another area.

In all the above, home cash buyers are probably the ticket. The reasons all make sense.