Comparing Traditional vs. Cash Home Buyers: Which Is Right for You?
To sell to a cash buyer or a traditional buyer? That is the question.
The residential real estate is amid a disruption in which cash is king. Here’s an inside look at the two home-selling options.
Sell to a Cash Buyer
Sell to a cash buyer and you will expedite the process. All-cash buyers reduce long-term costs, ensuring they have 100% equity in the house. We buy houses in Indianapolis for the same or even more than traditional buyers.
Cash home buyers get down to business right away. This is the streamlined approach to selling a home for fair value. In the end, selling to a cash buyer is mutually beneficial to both parties.
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Selling to a Traditional Buyer
Sell your Indianapolis house to a traditional buyer backed by a mortgage and you’ll find the process is tedious. Buyers with mortgages are dependent on the bank for ongoing assistance and final approval.
Selling to a traditional buyer is also a hassle in that it requires an appraisal and a complex closing process. Both of these extra steps take additional time and money.
Though the buyers typically pay most or all of the closing costs, some back out at the last minute. Take a moment to think about how disappointing it would be to have a bank-backed buyer exit the deal just before closing.
That is as frustrating as it gets.
Do Your Homework and Take Your Time
Due diligence is the name of the game. There is no need to sell today. However, if you want to sell your Indianapolis home fast, taking the all-cash route is ideal.
Hop online, do some sleuthing, and you will find most of those who sold their homes in Indianapolis for cash are ecstatic with the outcome. We buy houses Indianapolis for more than most expect.
Continue sleuthing and you will find a litany of complaints from those who sold to banked-back buyers with mortgages.
There is also the option of comparing offers. Do the math and you will find that once the real estate agent and bank take their cut, the mortgage offer is equal to or less than the cash offer.
Why take the risk of the deal falling through when you can sell for cash? There are no closing costs when selling a house for cash.
The best part is that selling an Indianapolis house for cash hastens the homebuying process.
Consider the State of the Housing Market
Everything is temporary and cyclical. This adage applies to the Indianapolis residential real estate market.
Do some homework, crunch the numbers, and you will find the local housing market almost always favors selling to a cash buyer.
It is also in your interest to check out local comparables. Such “comps” give you an idea of what similar homes in your area sold for.
If the market is particularly hot, you are likely to find an all-cash bid quite lucrative, as speculators are willing to take a risk on appreciating home prices.
Do the Math of Your Budget
Are you still on the fence as to whether it is better to sell to a cash home buyer in Indianapolis or a traditional buyer? Create or update your budget.
If the numbers show you will need an influx of cash, take the all-cash offer.
However, if you are in a good financial position and not desperate for cash, take a moment to consider a mortgage-based offer. A traditional mortgage offer is especially appealing if it is larger than the cash offer.
Comparing Traditional vs. Cash Home Buyers: Which Is Right for You? Consider Risk
Business and life are all about mitigating risk. Though there is risk in everything we do, we can minimize that risk with prudent foresight.
It is imperative that you do not lose sight of the fact that there is a significant risk in accepting a traditional home offer. The bank appraisal might be different than anticipated.
Moreover, the buyer might back out of the deal. There is also a chance that the prospective traditional buyer will lose his or her job before closing.
Even taking out a loan, a new credit card or other form of debt gives the bank a reason to withdraw funding.
Get an Offer From Ben Buys Houses
Our Indianapolis house buyers are a call away. Reach out to us at (317) 455-6768 or by email at [email protected].
We buy houses Indianapolis for top dollar. Contact us today, and you will get an all-cash offer for your Indianapolis house.
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