Cash Buyers vs. Traditional Buyers: Pros and Cons
If you're trying to sell your home, you're probably anxious to seal the deal as quickly as possible. But a traditional real estate transaction can take a long time: The typical U.S. home spent a median of 31 days on the market before going into contract in May 2023, according to Redfin data. Add on the time it takes to secure financing and close, and you're probably looking at double that. (1)
On the other hand, a cash sale is considered quicker and more convenient than a traditional sale. But it also has its faults. Read on to learn the pros and cons of cash buyers vs. traditional buyers.
Selling Directly to a Cash Buyer
Cash home buyers in Virginia Beach are investors or companies with enough funds at their disposal to buy a home in question upfront. These buyers don't need financing to buy homes. They also don't have to sell a current home to raise money to buy a new home. Here are the pros and cons of selling your home to a cash home buyer;
Pros
Quick closure: Typically, when you sell your home the traditional way, you should expect the transaction to take more than one month. However, when you sell your home for cash to a we buy houses Chesapeake company, the deal can be closed in as little as 7 days.
Can buy your home as is: When you list your home, you must repair or renovate it so that it can attract many potential buyers. This means you have to spend time and money on repairing and staging the house. However, when you sell it to a cash buyer, you won't have to repair or upgrade it. Cash buyers will buy the property as is.
Certainty: Cash buyers offer certainty when it comes to home-selling transactions. They have ready cash to buy different properties. They don't rely on financing to purchase your home. So when you find a trusted cash buyer, rest assured that the deal will be completed, and you will get full payment at closure.
No appraisal or mortgage contingencies: When you sell your house to one of the leading cash home buyers in Virginia Beach Virginia, you will avoid inspection and appraisal contingencies. This means that the selling process will not be delayed or affected by appraisal or home inspection.
Privacy and discretion: You may not want people in the neighborhood to know that you are selling your house. For that reason, you should consider selling it to a cash buyer. In this process, you will directly deal with the cash buyer, and the transaction will be completed in discrete. Only a few people involved in the deal will know about the transaction.
No commission or agent fees: Selling to a cash buyer helps you save a lot of money. For instance, you won't have to pay agent fees or commissions. This is because the transaction doesn't involve middlemen or brokers. You will keep all the proceeds from the sale.
Cover all closing costs: Reputable
cash home buyers in Virginia Beach will cover all the closing costs. This means you won't pay any closing costs out of your pocket.
Cons
Settling for a lot less money: when you sell your home for cash, you are likely to sell it at a slightly lower price than its market value. But you can get cash buyers ready to buy it at the current market price.
Selling to a Traditional Buyer
When you sell your home to a traditional buyer, it is essential to list it and hire a real estate agent to complete the deal. The entire process can be lengthy and complicated, but there are high chances of selling the home at the current market value. Here are the pros and cons of selling your home to a traditional buyer:
Pros
High chances of selling at a higher price: When you sell your home the traditional way, the house will be marketed. There are high chances of getting high-price offers from buyers, allowing you to pick the higher bidder. This means that there are high chances of selling the house at the highest price possible.
You might get support and guidance from an agent: When you sell your house the traditional way, working with a real estate agent is essential. The agent will handle the entire process, including marketing the house, showing it to potential buyers, and negotiating with buyers. The agent will also prepare paperwork. As a result, the seller gets all the support they need throughout the process.
Cons
The selling process will take much longer: When you sell your home to a traditional buyer, expect a lengthy process. You should first spend some time to deep clean and stage the home. Home inspection and appraisal must also be done. All these processes will delay the process.
Repairs and staging are necessary: When selling your home the traditional way, your home will be competing with so many other properties. For it to attract many buyers, you must repair and stage it. Also, work on its curb appeal to ensure buyers want to own and live in it. Repairs and staging will require money and time, which you may not have.
Contingencies: There are many contingencies involved when selling your home the traditional way. Home inspection must be done and the deal can collapse if a buyer finds that your home has major structural issues, pest infestation, and other serious hidden issues. In addition, appraisal must be done, and the mortgage may not be approved if the home is not priced correctly.
Uncertainty: A traditional buyer might be waiting for a mortgage approval to purchase your home. What happens when their mortgage application is rejected? The deal might collapse. What happens if a home inspector finds major hidden damages on the property? The buyer might pull out of the deal at the last minute. So, selling your home the traditional is surrounded by many uncertainties.
Agent fees or commissions: Selling a home the traditional way involves working with a listing agency or real estate agent. This means you have to pay around 6% of the sale price as commission or agent fee. So, it's better to sell your house for cash to a we buy houses Chesapeake company to avoid paying agent fees and closing costs.
Give us a call anytime at (757) 699 4796 or fill out this quick form to get started today!
Get A Fair Cash Offer On Your House
