Selling your house can be a stressful process. If you’re trying to sell quickly, an instant home buying company or cash offer might seem like a good idea. After all, they’re often able to close quickly— oftentimes within a few hours.
But are they really the best option for you? This guide will help you decide whether an instant home buyer is right for you and your needs.
The Process is Fast
The process is fast, often within 24 hours. When the market is down, the average home sale can take more than a month, with more expensive homes taking even longer. With this system, there’s no need for you to wait for offers from agents, who may not even be interested in your property. For many, particularly those who inherit a home or need to move across the country, the inconvenience of dealing with a property isn’t worth it.
If you need to sell your house fast, these companies can be helpful because they’ll buy your home quickly and won’t be nitpicky about any desired changes. This can be extremely convenient for people who don’t want to pay two mortgages, worry about cleaning the home before every showing, or adjusting the home’s price to the fluctuating housing market.
No Repairs
If you’re in a hurry to sell and don’t want to spend time making repairs or cleaning up your house, this may be the best option for you. When a company buys houses on an as-is basis, you aren’t going to make any repairs or improvements; they will give you whatever amount of money you can get based on the condition.
Having said that, the fewer issues the house has, the better the deal you’ll get. For a $500 repair, these companies may lower their offer by $750 or more. If the difference is large, you might want to make the repair yourself.
Financial Emergency
If you’re experiencing a financial emergency and need to sell fast, these companies can be handy. They can get cash in your hands as quickly as possible — again, sometimes within 24 hours! If you don’t want the hassle of selling a home yourself, this option could be perfect for you.
Unfortunately, sometimes life can hit hard. Whether it’s a job loss, a death in the family, or an emergency move, you may need to sell your home very quickly, especially if you have dozens of other things to deal with. Despite the difficult situation, it’s nice knowing there is at least an easy and efficient solution.
Less than a Traditional Sale
If all of this sounds too good to be true, it may be. The downside to an instant buying program is that you aren’t going to get the current rate. An instant offer, or cash offer normally comes in about 10% lower than the going market rate.
For many, this is a dealbreaker. But for others, especially when considering repairs, paying two mortgages, and dealing with realtors and buyers, the loss is worth it.
Watch the Housing Market
It can be difficult to understand the housing market because it is a complex, ever-changing system. It can, however, help you make better decisions about your home selling process if you understand the basics of how it works.
When considering selling your house for cash, it is important to keep track of the current housing market. You may want to consider this if you need to sell quickly or if you want to avoid paying large commission fees on your sale.
If you aren’t sure how the housing market is doing, look at the interest rates since mortgage rates are closely tied to them. In the event that interest rates increase, mortgages and other loans will become more expensive for buyers. Since most people get their mortgages when they buy a house, this could make owning a home more expensive for them over time.
Exploring Other Options
It’s a good idea to consider all your options when it comes time to sell your house. For example, if you need cash fast, a home buying company may be able to help you out.
There are other options, though, including:
- For Sale by Owner: This option is the option that puts you in the most control; however, it also requires the most work. This option is great if you already have experience in sales and have plenty of time to handle the stress of managing calls, appointments, and showings. On the plus size, all the money goes to you.
- Hiring a Realtor: This is by far the most common option. Selling a home is a lot of work, and realtors have connections and skills that are just unmatched. This option is great for people who are flexible with their time but don’t want to do all the dirty work.
- Renting: Renting out a home is not time intensive like a for sale by owner, but does require a long (permanent) time investment in maintaining a contract with tenants. This option is great if the mortgage rate is super low, but rental prices are high, meaning a high monthly profit.
If none of those options sound like the right fit, an instant home buying program may be perfect for you. Companies like Light Street Residential can provide more information and set you up to be successful in selling a home.