How Cash Offers Work For Texas Homes

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How Cash Offers Work For Texas Homes

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

  1. What cash offers on TX homes are and how they work
  2. Reasons Texas homeowners consider selling to an all-cash buyer
  3. Homes that are eligible to be sold for cash only
  4. The pros and cons of all-cash offers in central Texas

What Texas cash offers are and how selling all-cash works

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:

  1. Because buyers don’t need bank approvals, the process of selling a home for cash is much faster and closing costs are much cheaper.
  2. Because buyers don’t need bank approvals, all-cash home sales in central Texas rarely fall-through.
  3. Because the all-cash buyer industry is full of fraudsters and scammers, you must vet each investor to ensure they’re safe.
  4. Because Texas “we buy houses for cash” businesses invest to make a profit, cash-only offers for homes are for less than current value.  

Reasons Texans consider selling all-cash

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.

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Is selling your house for cash a good idea in Texas?

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?

Pros of all-cash deals for sellers in 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).