Itโs not uncommon to have a cash buyer approach your property for sale. However, itโs good to take caution and think about it fully before accepting any offer, cash or not.
Some home sales that go down the traditional route of mortgage/lender approval donโt always work, and for some, cash buyers make the most sense.
Should you ever sell your home for cash? Hereโs a realistic look at the pros and cons of doing both.
Why traditional home sales donโt work for everyone
Traditional home sales may not be the best fit for everyone. Some factors may influence your need to sell for cash, so itโs good to assess your own individual situation. There may be certain factors such as:
- A buyerโs need for speed and time-sensitive completion
- Propertyโs condition or presentation
- Incorrect pricing
- Market fluctuations
- An individual sellerโs circumstances may not be suitable for a multi-stage process in a conventional sale.
Situations where a cash offer makes senseย
There may be situations where a cash offer makes the most sense. Such situations include the following.ย
Needing to sell quickly
As a seller, you might need to sell quickly, whether itโs due to a divorce, job relocation, or to avoid foreclosure. It might also be that the property youโre buying requires you to be quick to proceed with the sale.
A cash offer tends to provide the speed and certainty that sellers in this position require.
Inherited or damaged property
A cash offer is certainly ideal for properties that have significant structural or cosmetic issues that may be preventing them from qualifying for a traditional mortgage.
If youโve inherited a property or it has structural problems, selling it as it is to a cash buyer might help to simplify what would others be a complex process. It also avoids having to cover the cost of the repairs before selling.
A broken chain
A broken chain will often make a cash buyer seem much more appealing. If your sale is part of a property chain where the buyerโs mortgage falls through, a cash buyer may come at the right time to push through with the sale.
Streamlining a move
For homeowners looking to downsize their home without much stress or effort on their part, a cash purchase offers that fast and convenient, hassle-free process.
Questions to ask before making the decision
Before you accept a cash offer, there are a few questions that you might want to ask. Is it a true cash offer? Whatโs the buyerโs financial situation and reputation like?
Itโs worth getting an idea of what the proposed timeline looks like and whether thatโs something that suits your needs. Make sure to confirm the total price, highlight any associated fees, and make sure to sort out a solicitor if itโs required.
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