Should I Sell my Rhode Island Home for Cash?
Realtor or Cash Home Buyer – Which is the Best Deal?
Selling a home is a big decision, and you might be wondering the best way to sell your Rhode Island home.
The traditional route is to partner with a licensed real estate agent, who will be your advocate throughout the selling process. They will also be responsible for staging your home for viewing, listing the property on the MLS, and facilitating offers and counteroffers.
For many home sellers, working with a realtor allows them to easily find qualified buyers, achieve a higher sale price on average, and takes care of a lot of the elbow grease that goes into the marketing and sale of your home.
But selling your home with a realtor isn’t the best option for everybody. Realtors earn a hefty commission, most of which is paid by the seller. Not to mention, the buyer’s agent gets a piece as well.
This commission is a double-edged sword for the seller. Because a realtor’s commission is a percentage of the sale price, they have a financial incentive to sell the property for the highest price possible. But for some homeowners, the realtor’s fees cut into an already dire financial situation.
Who Should Sell with a Realtor?
In general, if you have a home that is in great condition and are in no hurry to sell it, a traditional sale with a real estate agent is the way to go. Though it’s a lengthy and stressful process, the realtor will be able to attract the most qualified buyers, show your home in its best light, and ultimately get you the best deal on your sale.
What About Selling Your Home to a Cash Home Buyer?
Cash home buyers are private real estate investors who purchase homes without a lender. Because they have the resources and local partnerships to provide quick closings and perform affordable remodels, they have the flexibility to buy just about any property and make a profit on it.
Selling your home to a cash home buyer has its own benefits and drawbacks.
The most obvious drawback is you won’t get the full retail price for your home.
However, cash home sellers offer a quick and convenient way to sell a property. Because the buyer is paying with cash, there’s no financing contingencies and no inspections or appraisals by the lender. These processes are a large part of why it takes an average of 90 days to sell a home through a realtor.
Cash home buyers also buy properties in any condition. This means homeowners with damaged homes in need of extensive repairs are better off selling to a cash home buyer. Banks will often not approve financing for homes that need extensive renovations.
Financing issues are the number one reason real estate deals fall apart. Sellers who need to sell their home fast can’t afford for a deal to fall through at the last minute.
Some Common Reasons to Consider Selling Your Home for Cash
Here are some of the most common reasons people choose to sell their homes for cash.
You are Facing Foreclosure
If you are facing a bank foreclosure, you can sell the home before it is sold at auction or seized by the bank. You can use the cash from the sale to pay the loan balance and get a fresh start on your finances.
Homeowners facing foreclosure often need to sell the home quickly. When you sell through a realtor, you need to find a buyer, which can take months or even years in extreme cases. Once you’ve found a buyer, it will take anywhere from 30-120 days before closing.
When you contact a cash home buyer, you’ll get a cash offer immediately. Then, you can close in under two weeks.
The Property is in Bad Shape
Even though a cash home buyer will generally offer less than the full retail price for a home, it can still benefit the seller financially in many cases.
In cases where the property has extensive damage, the cost of completing the repairs is more than the higher sale price by selling through a realtor.
Most cash home buyers plan to repair and resell the home for a profit, but keep in mind that they often have partnerships with local contractors and retailers allow them to conduct the repairs much more affordably.
You Have Bad Tenants
If you own a rental property and your tenants are refusing to pay rent, selling the home through traditional means can be a nightmare. Hostile tenants will make showing the home and attracting buyers difficult.
By selling your home to a cash home buyer, they will take on the responsibility of evicting the tenants. This will also save time and the headaches of making repairs.
The Home is Vacant
If you have a vacant home that’s costing you money every month, the speed of sale offered by cash home buyers is an attractive offer. These can include inherited homes or homes that are having a hard time attracting tenants.
When you compare the cost of the home sitting on the market for six or nine more months to the amount you gain through a traditional sale (minus realtor fees & closing costs), sometimes it just makes more sense to get a cash offer now.
So Should You Sell Your Home for Cash?
If your situation fits any of those described above, it’s likely you’ll get more value out of a cash sale. The two most important factors are money and time.
If you need cash now for any reason, a cash home buyer can have it to you in as little as a week. If you need to get rid of the property quickly because you are facing foreclosure, relocating, or it’s sitting vacant costing you each month, selling the home for cash allows you to get rid of the property quickly. Learn more about the difference of selling to a cash buyer vs with a realtor here.
At the very least, it never hurts to explore your options. You can get a cash offer within 24 hours with absolutely no obligation. If you don’t like the price, you can just walk away. You’ve only spent a few minutes of your time.
If you want to sell your house fast, give us a call. We’ll give you a fair cash offer in no time.