When it comes to selling a home in the Lone Star State, homeowners typically follow the traditional process: make renovations and repairs; find a listing agent; research your home’s market value and set a price; clean, declutter, and stage; create your listing description with photos and videos; endure home showings and open houses; wait for offers; negotiate offers; accept an offer; wait through buyer bank approvals, home inspections, and make additional repairs required by the buyer’s bank; resolve title issues; close the deal; and move out and into your new home. According to the Federal Reserve Economic Research Center, the traditional home selling process takes 87 days - 52 days to get offers and 35 days to close. Do you have that much time to waste? What if there was a way to skip the hassle, stress, cost, and uncertainty of a traditional sale? There is! And the honest and safe investors at Good Vibes Homebuyers (GVH) are industry leaders at it.
The alternative to the traditional method is selling your house for cash in Texas, which is GVH’s Sell House for Cash solution. This article explains how cash offers work, sets criteria to help Texans decide if selling for cash is worth it, and explains the advantages and disadvantages of selling a Texas home to an all-cash buyer.
What’s in it for you
Selling a house for cash in Texas means that the buyer is promising to buy your home without needing financial assistance from a traditional lender. Instead, the buyer has enough funds in their bank account to cover the full sale price. When closing an all-cash deal, the buyer transfers the funds to the title company who then transfers the funds to the seller’s bank account. Sellers typically do not pay closing costs and realtor fees and therefore the proceeds that sellers receive are equal to the total sale price minus any lien payoffs (e.g., seller’s mortgage balance). In short, cash offers for Texas homes work like a traditional sale, except for 1 good and 2 not-so-good differences:
There are 2 main reasons to sell your house to an all-cash Texas property buyer: (1) time and (2) timing. The time to close an all-cash deal averages 14 days in Texas (GVH can close in 5 days), which comes in handy in scenarios where you need to sell quickly (e.g., new job, lost job, divorce, can’t afford your mortgage). The timing of your transaction could be equally or more important in situations where you need to align the sale of your current home with the purchase of another. Companies who do all-cash offers can work on your timeline while mortgage companies in traditional transactions require that sellers move prior to closing (GVH even offers sellers the option to move 180-days after closing).
Other reasons an owner sells their house all cash are situations where they (a) want to sell “as-is” without having to pay out-of-pocket for repairs, (b) want to save thousands in realtor commissions, (c) want a free, fast, and simple closing, and/or (d) have a home that won’t pass an inspection.
The goal of Good Vibes Homebuyers is to empower homeowners with the information necessary to make the decision that most effectively addresses their unique wants and needs. To that end, no matter how you sell your home, each method has its strengths and weaknesses, and the cash offer for houses process is no different. So, what are the pros and cons of selling my home to an all-cash investor in central Texas?
a. Higher sale price than other cash buyers: With our Sell House for Cash offers, GVH regularly pays 5% more than other cash only buyers. How? Our cash-sale process in central TX focuses on big volume, not big profit, and so where other investors seek 15% profit, our cash for houses offers are based on 10% profit.
b. No inspections and appraisals: When we buy houses for cash, certified home inspections and appraisals are not necessary. How is this beneficial? In traditional sales, banks require that homes be professionally inspected and for any deficiencies to be corrected before approving the buyer’s loan. If an appraisal comes in lower than the sale price, 1 of 3 things will happen: (i) the seller lowers the price to the appraised value, (ii) the buyer pays the difference between the sale price and appraised value, or the most likely, (iii) the buyer’s bank won’t approve the loan and the sale falls through. With GVHs all-cash home closings, central Texas sellers avoid all this unnecessary hassle and uncertainty.
c. Industry leading 5-day close: Remember above how selling the old-fashioned way went something like: clean and make repairs, hire a realtor, stage home, endure home showings, field offers, negotiate offers, select offer, clear title, etc.? You can skip it all and receive easy and fast cash and enjoy a stress-free closing by using GVH’s cash-only offers to sell your home in as little as 5-days.
d. Zero closing costs: Closing costs in a typical home sale include 6% realtor commissions, 2% seller concessions, and 2% buyer closing cost credits. Rarely are they less and often they will be more. With GVH all-cash closings, sellers pay 0%. Compared to a traditional closing, for example, a cash offer of $283,500 is the same as a $315,000 traditional offer (just without all the hassles and headaches).
e. Your situation doesn’t matter: Challenging situations can lessen the interest of traditional buyers and can keep lenders from approving a mortgage. Some of these situations include homes with title flaws, homes with delinquent taxes, homes with unpermitted improvements, homes requiring major renovation, and homeowners who need to sell fast. With our cash house buyers, no situation is too challenging, and we will overcome any hurdle with you or on your behalf.
f. Save on repairs: In a traditional sale, an inspection typically results in repairs having to be made. In most cases, the home seller must either pay cash out-of-pocket to fix the problems or lower the home’s sale price. In a cash for houses deal, Texas homeowners simply sell “as-is”. Even better, you don’t have to live through a home renovation.
g. Guaranteed sale: Unlike the traditional house selling process which is chalked full of renegotiating and option periods where the buyer can back out penalty free, when you sell to the cash-offers-for-houses investors at Good Vibes Homebuyers, your sale is guaranteed to close at the agreed upon price.
h. Full-service sale: Every Texan who opts for an all-cash sale receives their own personal closing assistant who performs all tasks necessary to get you to the closing table. Heirship issues? No problem. Estranged family members? We’ll be the intermediary. Title issues? We’ll track down and solve the problem. In short, a seller’s most time intensive task will be signing closing documents and collecting their cash at closing.
i. Save on taxes: Capital gains tax ranges from 0% to 20% and unless it’s your homestead, 100% of your capital gains tax is owed to Uncle Sam in the year you sell. GVH has completed multiple all-cash transactions where we helped the seller defer taxes by way of executing a 1031 exchange. Below is a recent, real comparison of a Texan who sold their home for all-cash to GVH and their tax liability had they not executed a 1031 exchange with our help:
This next real-life example is mind-blowing! The homeowner who sold us their house for all-cash with our support in executing a 1031 exchange ultimately experienced not only tax savings, but a massive increase in purchasing power:
1. Low purchase offers. As a trustworthy and dependable cash-for-houses investment company in Texas, it’s our ethical obligation to make it known that all-cash offers on your house, including ours, will be for lower than any other way of selling. In short, cash purchase offers are lower to help offset certain fixed overhead costs that average 20% of a home’s after-repair-value (ARV). If you’d like more information, this webpage details how our all-cash house offers in TX are calculated and this article details the profit that most investors target. Unlike most investors, however, the good news is that Good Vibes Homebuyers is more than an all-cash buyer, we deliver multiple ways of selling that can pay not only market, but above market value.
2. Deduct repair & renovation costs from offers: Similar to an investor’s fixed overhead costs, if a home needs renovation and repair, these costs are included in the cash offer. The good news is that this is cash you don’t have to pay yourself. Here’s how homes in Texas all-cash offers are calculated:
(After Repair Value) – (Repairs) – (Fixed Overhead Costs) – (Min. Profit) = Offer
3. Potential for fraud: Where there are great sums of money to be made, you will find a scam. Before entering into any cash sale contract, thoroughly research the company or person you’re dealing with to figure out if they’re a legitimate cash only home
When you contact us, one of our local Texas managers will call or text you to introduce themselves and to learn about the home you’re interested in receiving cash offers for. Within 2-hours thereafter, we will call or text you to present you with ways we can buy your house all-cash. This offer is preliminary and contingent on viewing your home through an in-person or virtual site visit to assess its repair and renovation needs (beware: all-cash buyers who do not request to see or claim that they do not need to see your house likely indicates a scam).
Within 24-hours of meeting you and seeing your home, we will finalize your all-cash offer and guarantee that the offer you accept will not be renegotiated later. There are no hassles nor obligation to accept, and we will freely and honestly discuss other options for selling that may be more suited to your unique situation – including options that do not involve selling to Good Vibes Homebuyers. Below is an example of what your all-cash offer will look like on your Texas house:
Did you notice that we show our profit to you? We guarantee you’ll be hard-pressed to find even 1 other investor who does the same. Our Texas cash offers on house are based in honesty and integrity, and we believe in closing cash only deals that are equitable and beneficial to both parties.
Sellers who decide not to continue are never hassled or pressured but are left armed with a free comps report and the knowledge necessary to make the best decision. But because our all-cash offers on TX homes are often for more than what other legitimate investors can pay, many sellers before you have opted to continue with selling through GVHs Sell My House for Cash solution. For all our homeowner clients, the process thereafter is seamless and stress-free.
1. How common are cash offers in Texas?
Cash homes sales are widely believed to be uncommon, so you might be surprised to learn that according to ATTOM Data Solutions, cash sales account for 22% to 24% of all nationwide real estate transactions, which is the 2nd lowest percentage since 2007.
2. What are some issues that can lead to lower all-cash offers?
Two of the biggest causes for reduced cash offers are foundation problems and unpermitted additions. When these issues exist, there are many unknowns that can cost a lot of money to resolve and therefore must be accounted for in our all-cash offers for central Texas houses.
3. Does Good Vibes Homebuyers charge any fees?
iBuyers like Opendoor and Offerpad charge service fees that range from 7% to 12% and they do not pay closing costs. The result is that if you opt for an iBuyer, homeowners looking to sell all-cash in Texas will pay between 10% and 15%. Alternatively, when we pay cash for houses, sellers pay 0%. Guaranteed.
4. How does buying homes all-cash benefit Good Vibes Homebuyers?
Two ways: first, like you, we don’t like inspections, appraisals, or banks. With cash-
5. What houses are ideal candidates for being sold for all-cash?
Homes that are most suited for all-cash transactions typically include houses with at least 35% equity, homes in poor to fair condition, and homeowners who want a simple, free, no-stress closing.
6. How is closing handled when selling my home via all-cash?
When a central Texas homeowner agrees to a cash only closing, we close with a local title company who is experienced in buying and selling homes for cash. Sellers pay zero closing costs, there are no hidden fees, and we can close in as little as 5 days. Want proof? Reach out to the title companies we regularly use in Bell County and the Austin to San Antonio areas to verify our existing relationship and proven track record.
Finding a reliable and honest cash only homebuyer in central Texas can feel like a daunting task, but it doesn’t have to be. You can count on the cash investors at Good Vibes Homebuyers to make the process simple, safe, and fun. Just enter the address of your central Texas home and we’ll provide you with a no obligation, no hassles, full-cash offer. Trade the repairs, negotiating, and open houses for a simple, certain, and fast all cash process instead. Call, text, or submit our online form today!
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