Should I settle for an ALL CASH offer?

If you’re a distressed homeowner or have an unwanted property that’s empty gathering dust, I’m sure you’ve contemplated a discounted cash offer from a real estate investor. I’m sure you’ve even received a dozen or more postcards and letters from investors asking you to sell your house to them.

Should you consider taking this option?

There are many advantages to accepting a cash offer from an investor. Below is a list of reasons why you should consider taking this route.

1. Fast cash. It’s not uncommon for a bank-financed buyer to take 60-90 days before they can close the property. With an ALL CASH buyer, you can skip all the bank financing bureaucracy that allows these cash buyers to close in 7-10 days.

2. No inspections are needed. With the stringent requirements banks have these days, your vacant or distressed property may not pass bank or county inspections *. The cost of making a property code compliant can be expensive. With a cash buyer, most of the time they will buy it as is with no inspections required.

3. No real estate agent fees. Since you are dealing with investors, you shouldn’t have to pay real estate or broker commissions. This can save you 6-7% on the top. If the investor you are dealing with is a broker or agent and you want to charge a commission, keep making calls until you find a buyer who is not a licensed broker.

4. Don’t pay closing costs. A big advantage of dealing with a cash buyer is that they have the cash to cover your closing costs. Most buyers in today’s market ask for between $ 3,000 and $ 5,000 in concessions from the seller. This is an expense you can avoid when dealing with a cash buyer.

5. No need to qualify. It’s not uncommon for a bank-financed buyer to go through the home buying process only to be denied a day or two before closing. With a cash buyer, they have the ability to close immediately.

So, as you can see, taking a discounted price from a cash investor does not mean that you will take a complete loss. The money you will save dealing with a cash buyer reduces the amount you will pay when dealing with a bank financed buyer. The cash buyer’s ability to close quickly without the hassle of dealing with inspectors and contractors will help you sleep much better at night.

* For more information on building inspectors, click here.