Cash house buyers are a dime a dozen these days. Many real estate investors are advertising they buy houses for cash, and our mailboxes are often flooded with handwritten real estate letters and other flyers that communicate this message. I’m sure you are asking yourself if this is legit and what does this mean?
A cash house buyer is someone (like us!) who purchases your property with no financing condition. Why is this important? This is important because when both the Seller and the Buyer agree on a price for a property, the most important term in the conditional clauses is the financing clause. Removing this clause guarantees that the deal will close (provided there are no other conditional clauses in the offer).
Why is this important? This is important because there are circumstances when a seller has very specific needs. This could include; they purchased another property and need the funds to finance their property on a specific date, they need the funds to avoid financial hardship or perhaps they have an employment opportunity that requires them to relocate (and many, many other unique circumstances!). By working directly with the seller, a private house buyer can guarantee a mutually agreed upon closing date because they do not require bank financing to close the deal.
When a bank is required to fund a deal, there are many aspects that they consider before agreeing to finance. They will typically do an appraisal on the property to determine its value and assess their risk for their loan on the property and not to mention the personal criteria of the buyer themselves. This includes a credit check and more importantly, their debt ratios which is a whole other discussion.
So is a cash house buyer right for me?
Well, that depends on your circumstances. A cash house buyer is a fantastic solution for someone who has a very unique situation and requires specific terms and conditions for peace of mind and to have some control over the transaction. Sellers may also prefer to sell their homes privately without public advertising and marketing through a real estate agent.
If you want to sell your house fast, an experienced cash house buyer will have systems already established within their network to make this happen. When choosing a house buyer that can close on your house quickly, make sure you ask questions to determine if they would be a good fit for you.
For more information about our process, fill out our contact form to set up a call and see if we would be a good fit for your needs!