Selling your home for cash could prove to be a great deal for you. Unfortunately, there is some misinformation out there that can cause sellers to make inaccurate assumptions about accepting cash for homes.
The following are six things you shouldn't assume about accepting a cash offer for your home.
Any buyer who is offering cash is trying to scam you.
Cash buyers are just normal investors who make money from buying and selling real estate. While you of course have to be careful and make sure that the cash offer you're getting is fair, you shouldn't assume that all buyers who wish to pay in cash are scam artists.
You have to own a very valuable property to attract cash buyers.
A cash buyer could be interested in any type of property. You don't have to own a certain type of property or have an extremely valuable property to successfully sell to cash buyers.
You'll get a lot less than your home is worth if you're paid in cash.
Cash buyers sometimes have a reputation for making only low-ball offers when they buy a property. However, offers that cash buyers make are often more than fair.
Although some cash offers might be a bit less than a home's actual valuation, cash buyers offer the convenience of being paid upfront in cash. For some sellers, the convenience of receiving cash in the transaction makes it worthwhile to accept a slightly lower offer than a home's true valuation.
You'll have to wait a long time to get the cash if you agree to the offer.
The convenient thing about cash home sales is that the transaction is generally quicker than a transaction typically is with a standard home sale. When your buyer pays in cash, you don't have to worry about the financing falling through. You'll probably get to the closing stage very quickly with a cash buyer.
You'll have to make extensive repairs before a buyer will follow through on a cash offer for your home.
While the buyer may request for you to make repairs in some cases, a cash buyer will not always have this stipulation when making an offer. It's also worth noting that home inspections and repairs are frequently required with traditional home sale transactions that aren't paid in cash.
You can get out of capital gains taxes on a home sale by getting paid in cash.
A cash sale can be more convenient for a seller because they receive the full closing value of the property in cash. However, sellers shouldn't think that a cash sale changes their capital gains tax responsibilities in any way.
You have to report your sale to the IRS and pay any capital gains tax from a cash home sale just like you do when you sell a home through a traditional transaction.
Learn more about cash for homes.
Share20 December 2022
Selling a home is a lot of hard work consisting of home improvements, inspections, advertising, customer service, sales, contracts, and more. Working with a real estate agent can help make the process easier and less stressful by streamlining everything that has to be done and ensuring that the legwork is complete in a timely fashion. The number of services an experienced real estate agent can offer might surprise you! Explore the pages on this blog to learn more about how a real estate agent can help you buy and sell a home or property, and how to go about finding a real estate agent to work with who can meet all of your unique needs and expectations. Thanks for stopping by! Don't forget to check back often as this blog is updated regularly.
