An Ideal Situation
Most homes are too expensive to be sold for cash, but there is no home so valuable that this is totally out of the question; it’s just a lot more unlikely once a property’s value gets higher than $100,000; if for nothing else than the difficulty of acquiring such large sums.
Even so, there are options there as well. It all depends on your property, your neighborhood, and the market where you’re selling. If you can emphasize a cash sale in terms of property, there are advantages worth considering. Following we’ll briefly go over a few of these advantages to help give you an idea of what you can look forward to.
A Greater Likelihood The Sale Will Be Successfully Completed
If someone is paying through a bank loan, that can take time. Additionally, layers of complexity are added to the transaction. Think about it critically. What’s a more elegant machine; one with more moving parts, or less moving parts? A non-cash transaction has “more moving parts” than one which transpires through simple cash exchange.
When you can eliminate those unnecessary steps, then you’re a lot more likely to see the sale completed. The more complicated the transaction, the more opportunity there is for the sale to fall through. Reducing “moving parts” is better for the financial “engineering” of your home sale.
Available Cash On-Hand Which Can Be Discretionarily Used
When you do a cash sale of a property, suddenly you’ve got whatever the value of the home was available in cash. Liquid cash. You can do what you want with it. The only way it’s traceable is through the transmission of the deed, but that can be done at the discretion of the seller for no cash whatever. The point is: you can do what you want with that cash.
Faster Sales And A Simplified Overall Process
Because there are fewer financial “moving parts”, that means that complication in the sales process is reduced. As a result, from the time somebody peruses a home, to the time they decide to buy, if you go the cash route, it doesn’t take as long. Of course, you do want to be careful how your list makes your property stands out to cash buyers.
This website can help you get a little more insight into the best tactics in terms of listing the property to see that sort of outcome. There’s a lot involved regarding how to list your house for sale; it’s best to use resources like those in the hyperlink to help avoid common pitfalls of the process.
As-Is Cash Sales Eliminate Repair Needs
If you’re selling a house to someone who is going to mortgage it through the bank, because they’ve got a lot of money on the line, and they know they’ll be in debt for a while, one of their negotiation tactics will involve compelling you into fixing certain architectural issues of the property before they sign on the dotted line.
When you don’t have a cash buyer, such a contention can be weighty, and compel you into fixing issues before being able to move a given property. However, if you go the as-is route and seek a cash sale, that issue disappears. If they have a qualm, say: “Well, this property is being sold for cash as-is.”
Now you might have to take a slight hit in terms of the price at which you can move the property. However, collaterally, there’s an advantage here. You get the money immediately, and you can put it to use accordingly. A good way to avoid taxation is to roll that cash immediately into another property and work a 1031 exchange.
Expanded Negotiation Potential
In a nutshell, going the cash-in-hand route for selling a property will produce some distinct benefits. You’ll have the cash immediately available at your discretion. Sales happen much more quickly when you go the cash route. You may be able to avoid costly repairs without having to lower your price significantly. Also, it’s more likely the sale will go through.
Granted, going the “cash” route isn’t always easy. However, there is potential here. Look at your property, look at your market, and seek resources or consultation to help you determine the best ways of selling a property for cash. The benefits make the footwork well worth the effort.