Between 2014 and 2021, the percentage of homeowners who accepted a cash offer has ranged from 15% to 35% (National Association of Realtors). As of January 2024, the number of all-cash closings accounted for 32% of all home sales, which is a 3% increase since January 2023 (National Association of Realtors). If you decided today to test the Texas housing market, it’s very likely that you would receive at least 1 cash offer on your home.
The idea of a buyer showing up at your door with a briefcase filled full of cash certainly sounds appealing. Having such thoughts is 1 thing, but in reality, this is not how selling a home all-cash works. Instead, a cash offer is of benefit to sellers in that the buyer has enough cash to buy a home without needing a mortgage or some other form of financial aid. This alone makes selling a home for cash very attractive to homeowners, as it eliminates a lot of risk and accelerates the closing process that is typical in traditional real estate transactions.
This is a notable benefit for cash sellers indeed, nevertheless, there are many more advantages of accepting a cash offer on your home.
What’s in it for you
All-cash offers are very common, with this largely due to the variety of advantages a cash sale offers sellers when compared to a traditional sale. Here’s a breakdown of the top 9 benefits to sell a house for cash:
When accepting an offer that depends on the buyer securing a mortgage, things can get derailed. And quickly! In non-cash sales, a buyer’s mortgage company will require both an official appraisal to figure out a home’s value, which could come in low, and a home inspection to uncover any repairs, which could reduce the home’s value and/or eliminate the mortgage company’s approval of the buyer’s mortgage.
A cash offer, on the other hand, provides tremendous advantages for sellers as the hassles and uncertainty of inspections and appraisals are eliminated entirely, even if a home has flaws.
Selling a home can be very time-consuming. In fact, where mortgage lenders are involved, the time it takes to sell averages 87 days: 52 days to receive and accept an offer and 35 days to close (Federal Reserve Economic Research Center). Do you have that much time? If you do, how would you feel if your buyer couldn’t get final mortgage approval? Like most, you’d be angry because it would require you to start the process all over again.
The benefit of accepting a cash offer for your home is that you’re in control of the timeline. From start to finish, cash offers close in an average of 14 days, which is 620% percent faster than traditional methods. A couple all-cash companies even offer ways to sell in as little as 5 days or the choice to close on your timeline, even if it’s months away.
There are many beneficial ways to sell to a cash buyer without your schedule being negatively affected.
Home repairs and home renovations can pose a significant obstacle for homeowners selling on the open market. Perhaps a buyer’s lender requires certain “fixes” before they’ll approve a loan. If you don’t, the deal could fall through, or you could be forced to lower the sale price considerably. Neither of these outcome’s benefit home sellers.
Agreeing to an all-cash offer allows homeowners to sell “as-is”, without consideration for a home’s current condition. 3 things make selling “as-is” for cash beneficial: anyone can sale with no money out of pocket and the costs of cleaning and staging are avoided, which can be as high as 2% of the sale price.
Getting a home ready for sale on the open market costs a lot. On average, you can expect sales fees to total 7% of the sale price. This average, however, does not include sales fees or realtor commissions which will eat into your profits an extra 8% for a total average cost of 15%. Ouch!
The advantage of selling to cash buyers is the savings on fees and agent commissions as most don’t charge them. When deciding whether to accept a cash offer, however, remember to ask about other savings and benefits a cash buyer can provide. The best all cash companies often can save sellers even more by offering to cover seller moving costs and title fees.
The number 1 reason homes fail to close on the MLS is financial problems with the buyer. In contrast to selling on the open market, which includes negotiations, renegotiations, and option periods chalked full of contingencies that allow buyers to withdraw without financial penalty, when selling all cash, you have the advantage of a guaranteed closing.
Did you know that Good Vibes Homebuyers guarantees closings and we do not renegotiate to lower the sale price once an offer is accepted?
A lot of paperwork is involved in the traditional selling process, which can be confusing and time-consuming. The amount of paperwork you must read carefully, and sign can be overwhelming, and even the slightest mistake can cost you in the future.
Working with a reputable cash buyer significantly reduces the need to handle and review paperwork since they’re handling it for you. Keep in mind that not all cash homebuyers provide this service, so you’ll want to look at references and reviews to figure out how they help to reduce a seller’s workload and how they handle the closing process.
The traditional selling process is loaded with stressful situations at each of the 12 steps it takes to list and sell a home. To name a few, you have to keep your home neat, clean, and tidy, endure showings, make repairs and upgrades, and oversee the appraisal and inspection process. At any step, the sale of your house could fall through and set you back months.
Did you know that 76% of Good Vibes Homebuyers closings are the result of sales failing to close on the open market?
Most sellers welcome less stress, and less stress is exactly what a home for cash offer delivers. Paying cash to sellers not only makes the process fast but it also comes with the added benefit of skipping every 1 of the traditional 12 steps.
Selling your home quickly may be necessary for a variety of reasons. For instance, you inherited a home that needs costly repairs, you want a fresh start after a messy divorce, you lost a job and are financially constrained, you’ve fallen behind on mortgage payments and are facing foreclosure, or maybe you just want quick cash and an easy closing that’s free of closing contingencies. No matter the problem, a cash offer provides simple solutions to these chaotic problems.
All real estate sales without a mortgage company start with learning about the max price cash buyers can offer. Submitting a simple online form or making a quick call is all it takes to begin the all-cash process. The sale of a home then becomes easy as reputable cash businesses will contact you to learn what makes your home special and to discuss what its cash value could be. Soon after, they’ll make an offer in cash for your home, and some companies will even provide offers to sell above market value. You can accept or decline their offer and no matter your choice, there is no negotiating – you have your price, and the cash buyer has set his. This means, in short, you can’t sell for any less and an all-cash investor can’t pay any more (otherwise, they’d lose money). There is no room to negotiate.
Compare this to the process when buying your house. There was likely a lot of negotiating with the seller through your real estate broker about repairs needed, credits to be given, who would pay closing costs, and more. The benefit of selling all-cash is that it skips such hassles.
If you’re considering selling your home, a cash offer from Texas’ Good Vibes Homebuyers can be the right choice! Contact us to get fast, free, and firm cash offers!
Sellers love cash offers and many times an all-cash sale is the best option. But not always. Deciding which way to sale is right for you comes down to the benefits and drawbacks of each sales method. Things to compare might include, for example, the simplicity and certainty of cash transactions vs the complexity and uncertainty of MLS listings, the speed at which cash offers close vs the slow-moving pace of traditional sales, and the price cash buyers can pay vs the price buyers working with agents can pay.
Somewhat surprising, home sellers often choose a cash offer over higher offers that involve third-party financing. Why? Because an offer in cash is practically guaranteed to close, and to close quickly, and will often net sellers the same or even more profit when common sale fees and real estate agent commissions are accounted for.
So, selling all-cash, is it better? Consider the potential (and common) deal-killers of conventional housing sales, starting with the home inspection. Nearly 100% of all situations with third-party finance involvement require that a home be inspected before completing a buyer’s loan. If the home inspection uncovers needed repairs, lenders often will decline to approve a buyer’s loan unless:
Home inspections can be nerve-racking for both parties, especially since repairs can derail a closing. Rather than go through the stress, inconvenience, and potentially costly home inspection process, accepting an all-cash offer can cut out every hurdle without ever reducing a seller’s profits.
What else about selling all-cash is better? Even when a home passes an inspection, a buyer’s financial qualifications may not pass lender underwriting or maybe a buyer applied for a credit card or experienced identity theft during the home purchasing period.
The point is: it takes just 1 poorly timed or unfortunate incident for a buyer to be disqualified from achieving bank approval, but agreeing to a cash offer is better for sellers who want to avoid all the stumbling blocks of a traditional sale.
As residential investors who offer all-cash options for selling a home, we’ve fielded hundreds of questions throughout the years about why people should even consider selling for cash only. In this section we highlight several of the more common questions and offer past seller perspectives about the pros of an all-cash home sale that they benefited from when selling to Good Vibes Homebuyers.
Cash sales benefit property owners in the following ways: (a) we pay 5% more than other firms can offer in cash; (b) inspections and appraisals are not required; (c) fastest in the industry 5-day cash closing; (d) free closing costs and no agent commissions; (e) no hidden fees; (f) home condition doesn’t matter making it practical to sell cash “as-is”; (g) free local move, get a cash advance, and avoid moving up to 180 days after the sale.
It’s easy to understand why home sellers gladly opt for a cash deal: they’re faster, simpler, and have little to no obstacles to navigate. But why are buyers incentivized to pay cash for a house? Simply put, paying cash gives homebuyers a negotiating advantage, it lowers their closing costs substantially, they avoid paying hundreds of thousands of dollars in mortgage interest payments, and they can buy homes in cash in any location and in any condition without restriction.
Use this home sale profit calculator to estimate how much you’d benefit from selling to a buy houses with cash company. You can also review “the max price Texas home investors can pay” article to learn about the 4 different types of cash buyers and how they calculate their all cash price.
A buyer’s financing falling through is the primary cause of deals “dying” and results in sellers having to start over the process at step 1. To avoid such perils while guaranteeing a simple, seamless, and quick sale, the following are a few of the situations that are best for an all-cash property sale: (a) want money as fast as possible; (b) need a guaranteed closing; (c) financial hardship; (d) done with tenants; (e) need to move for a new job; (f) need to move to care for a family member; (g) inherited a property you don’t want; (h) homes in disrepair; (i) recently divorced; or (j) retiring and need to reduce expenses.
Regardless of your circumstances, benefitting from a smooth cash sale starts and ends with contacting an investor for a free, 0 obligation and 0 hassles cash offer!
We can sometimes increase our cash offer, however, upping your all-cash bid by 10% or more is not likely. When the cash price won’t work for you, we provide 3 other home sale methods that can substantially raise the sale price (and without you needing to sacrifice any all-cash home sale benefits).
If you're running up against a deadline, or if you need cash at once to relieve a financial burden or to simply ride off into the sunset flush with cash, accepting an all-cash offer for your home makes perfect sense. Doing so allows people to uncomplicate what is often a draining, aggravating, and time intensive process. The steps to sell your house for cash is fun, secure, and can result in massive cash profits for home sellers. See quickly for yourself how an all-cash offer can benefit you!
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