Most people turn to cash buyers specifically because they want cash for their homes. It’s a pretty clear cut solution to a common desire a lot of sellers have. What most people don’t understand is working with cash buyers comes with a whole boatload of advantages besides that cash. A lot of sellers who find themselves in tough situations will find that cash buyers can help them in countless invaluable ways.
Foreclosure and Short Sale
Homeowners facing foreclosure are often panicked. Foreclosure isn’t good for anyone. It costs lenders a ton of money, and it leaves long lasting blemishes on the credit history of the homeowner who couldn’t pay their mortgage. Foreclosure always adds insult to injury – it’s a terrible thing to happen to someone who was already having financial problems.
The best thing a homeowner in this situation can do is avoid foreclosure. The only way to do that besides paying the lender in full is finding a buyer before the lender does. The lender might want a specific amount of money for the sale of the home, and a cash buyer can work directly with the lender to make sure they’re satisfied.
If the cash buyer is able to complete the sale before the end date of the foreclosure, the transaction will show up on the homeowner’s credit report as a loan repaid different terms, or a short sale. This isn’t great, but it’s a lot easier to work off than a foreclosure. It will expire several years sooner, and the hit is much smaller.
Fixing Damaged & Burned Down Properties
Some people need to move out of their houses due to the extent of damage. After natural disasters, floods, or fires, homes that have been damaged beyond what insurance can cover are very expensive to fix. This leads the people who live in those properties to find another place to live, and they need to find that place quickly.
Most traditional buyers don’t want to move into a home that will immediately need a ton of work. They want to find a place that’s move-in ready, and these damaged properties clearly aren’t. Cash buyers like investors often renovate homes. They’re not going to live there, so the damage doesn’t scare them off. They’ll prepare an offer that reflects the repair costs, and give the seller cash.
The seller then has the funds they need to move into a safe dwelling, and repairing the damage is no longer their problem. Even if the home is facing code violations, most cash investors are still willing to purchase the property.
There are a lot of reasons why a homeowner might need to sell their house quickly. Even if the house is great and the market is booming, the closing process can still take a long time. If you need to relocate for an emergency or a new job, you can’t afford to wait for the lengthy traditional closing process to be completed.
People who have inherited a property that’s far away from where they live will want to sell quickly so they can return home and resume their normal lives. Some people need to sell quickly to satisfy the requirements of a divorce or asset liquidation. There are countless reasons why some people simply can’t wait to close.
Cash buyers don’t need to be approved for a loan or wait for funding to become available. There’s no chance of a lender turning them down. All of the money is coming out of their own pockets. This trims down the closing process significantly, taking it down from 45 days or more to a week or less.
If you’re in a hurry, you’ll love a cash buyer.
They’re in just as much of a rush as you are.
Homes That Seem Impossible to Sell
Homes in slow real estate markets or bad neighborhoods are hard sells. If the market is moving slowly in your area, it may not matter how beautiful or reasonably priced it is. The buyers just aren’t there, and you’re preaching to an empty room. People won’t see your property if they aren’t looking in your area, and the only remedy to this situation in the traditional market is waiting.
Homes in neighborhoods with higher crime rates are a difficult sell, especially to families with children. Parents look for safe neighborhoods near great school districts, and if you have a home large enough for a family in an area that doesn’t satisfy those criteria, you’re likely to get passed offer.
Investors who purchase with cash don’t really care much about either problem.
They’re going to purchase your property, renovate it, and do all of the waiting on your behalf.
You’re done with it as soon as you accept the offer.
Rescuing Burned Out Landlords
Cash buyers often buy rental properties. This is good news for a lot of people who are really tired of being landlords. It’s hard work, especially if you’re dealing with difficult tenants. Cash buyers will overlook any damage your tenants have left behind, and some of them may be able to help you evict those tenants.
This help sometimes comes in the form of advice and resources, but in some cases, cash buyers may be willing to help you remove unsavory tenants via a cash for keys scheme when they purchase your property.
Can a Cash Buyer Help Me?
Cash buyers are looking for all sorts of properties in all sorts of situations. They have experience handling tough scenarios, and they might be able to help you sort things out. If you just want to sell your home quickly for cash and find the simplest solution to your headaches, it never hurts to turn to a cash buyer.
Everyone wins. You get the safe and successful sale of your home without any insurmountable obstacles, and the cash buyer gets an investment property. It’s serendipity, and everyone can feel great about the outcome.
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