Del Aria Investments blog post: Is Selling For Cash a Smart Move?
Whether you want to sell your home for cash or use a mortgage, selling for cash offers several benefits. For starters, it gives you more wiggle room and eliminates many steps, like getting third-party approval. Plus, it gives you the luxury of time, which can be incredibly valuable. Here are some of the reasons why selling for cash might be your best option. Listed below are the advantages of selling for cash:
Selling for cash can create a bidding war
A significant cash offer is particularly appealing in a bidding war, as a seller can avoid the worry of home appraisals and buyer mortgage approval. Also, a buyer can avoid the loss of earnest money if the house turns out to be a poor investment. While selling for cash can increase the likelihood of a successful sale, a seller must be ready to decide quickly whether to accept the bid or reject it.
As home prices continue to rise, competition for homes will only increase. In a seller's market, fewer homes will be available for sale. With fewer homes available, each property is in high demand. The number of homes sold over asking price increased by 14% in January and is expected to grow to nearly four-fifths in February. While the competitiveness may ease in the second half of the year, bidding wars will likely continue as long as mortgage rates and supply of homes continue to rise.
It reduces home-selling expenses
When selling your home, you can use cash to cover some of your closing costs. This can save you a lot of money on your home selling expenses. Instead of signing papers and conducting a traditional closing, you can complete all of the paperwork electronically. If you don't have the time to complete these tasks, you can recruit free moving help. Then, you can spend less money on moving and home staging.
When you find a buyer, you'll receive an offer for your home. An offer is generally between 10 and 20 pages long. Read through it carefully, as the offer may ask for a concession from you for closing costs. If this is the case, be sure to negotiate this. Some buyers will even want you to pay a portion of their closing costs. Besides, the buyer won't have to cover all of your expenses, like a home warranty.
It allows you to avoid a devastating hit to your credit
There are many benefits to selling for cash. Most people will not need to report a late payment. Likewise, you can avoid a delinquency judgment if you are not willing to let your mortgage go into collections. Credit scores can take a hit if you have late payments on any accounts. And if you can sell for cash, you can avoid a delinquency judgment altogether.
It can help you avoid foreclosure
In a situation where you are facing foreclosure, selling for cash might be the best option. Selling for cash will not only help you avoid foreclosure, but also pay off your mortgage and other debts. Plus, you'll get some money to start over. This option can also be a good way to avoid bankruptcy and other financial difficulties. However, before you can start the process, you must understand the process of selling your home.
When selling your home, make sure you find a reputable buyer who is willing to pay in cash. A cash buyer can close within seven days, which can help you avoid the foreclosure process. Because the cash buyer does not need to secure financing to buy your home, the transaction can go through faster than a traditional sale. Moreover, it will not affect your credit score or report. This is a major advantage if you're facing financial instability.