Depending on your circumstances and how you are going about selling your house, you may find yourself in a situation where either you have a cash buyer approach you to purchase your home or you choose to seek out a cash buyer. Whatever the situation, it’s important that if you’re considering selling a house for cash, you know what is involved in selling house for cash, are aware of the pros and cons, as well as how to do it safely.
Cash home sales are more prone to scams or fraud than other transactions, which means you need to be alert and cautious when approaching this kind of sale. But don’t fear – we can help you become savvy and aware of the pitfalls. You can successfully sell your home for cash and be able to move on with your life quickly and smoothly.
Pros & Cons of Selling house for Cash
When considering whether to go with a conventional sale or a cash buyer, there are some pros and cons you should keep in mind.
Pro: Cash buyers will be able to hand the money over immediately. You can request proof of their ability to pay in the form of a bank statement or some other documentation.
Pro: Cash sales will process quicker, usually in a few days or a couple of weeks.
Pro: Cash buyers often will purchase the house in “as-is” condition, not expecting lengthy repairs or remodeling.
Con: The typical sale price with a cash buyer will be 60 to 80 percent of fair market value, minus repairs.
Con: This method is more prone to fraud, whether by fraudulent checks or illegitimate funds.
As you can see, if you’re willing to take less than market value (which may especially be the case if you just need a quick sale), then cash buying can be a fantastic option. And, as you’ll see in a moment, if you work with an accredited buyer, the threat of fraud goes away too.
Red Flags & Pitfall
Here are a few additional red flags to watch for when selling to a cash buyer:
– Not wanting to see the property. This can be a big red flag – wouldn’t you expect a buyer to want to see what they’re purchasing?
– Communicating only over email. This, along with misspelled words, poor grammar can indicate a scam or con artist. They may present legitimate-looking documents, but in the case of asking for a refund could do so before the funds clear your account – funds that they never actually sent. You’ll be out the full price of the house.
– No haggling. If the buyer doesn’t try to negotiate at all, that can be suspicious. Proceed with caution.
Overall, it’s important to be aware and shrewd when making these cash sales. Do everything you can to make sure you’re not being scammed!
What happens after you sell your home to a cash buyer, you might wonder. After all, many cash buyers are investors, not homeowners. There are a few options that investors tend to consider – including us at Ben Buys Indy Houses.
– Fix & Flip: If we think your house is worth the time and money to repair it and sell it for a profit, we may do so. However, this option carries a fair amount of risk for home buyers, since it can take a lot of time and energy and money to get a home remodeled and sold. After all, there’s a reason a homeowner would sell to a cash buyer in the first place – selling a home is hard work!
– Rent It: Some properties are better suited as rentals, in which case, we might hold onto it and use it as a long-term rental space. This is a good option for lower-equity houses that are still relatively ready for the market.
– Wholesale: If neither of these options are good ones for your house, a cash homebuyer may partner with another investor and work to sell or rent the house. The biggest risk here is working with a cash homebuyer that is dishonest or cannot close on time, since the process relies on them getting your home under contract for the negotiated price, then marketing it to buyers. This is a risky option, but can be done!
Selling House for Cash to Ben Buys Indy Houses!
If you want to avoid fraud and any worries that you’re being conned, but still thinking of selling a house for cash, contact Ben. Ben Buys Indy Houses is an accredited cash home buyer in the Indianapolis area, and we promise that we will be honest and easy to work with. You’ll have no need to fear a con here – we’ll work with you quickly and efficiently to buy your home for a fair price, even within a week! Hear what Josh had to say about his experience working with Ben: