Should I Accept A Cash Offer For My House?

You’re finally ready to sell your house. It’s been a long time coming – ever since your teenage daughter accidentally drove into the wall and you realized that replacing the entire foundation would be more expensive than just buying a new one. Thankfully, Integrity Home Buyers Colorado can help you sell your house without the hassle of dealing with realtors by presenting you with an all-cash offer – if your house fits the bill.

Even so, now that you’ve put it on the market, everyone suddenly seems interested. Maybe it’s because your real estate agent has been sending out flyers with a picture of your house Photoshopped onto the cover of “The Great Gatsby.” (She said it would help people imagine what their lives would be like if they lived in your house). But no matter why they’re interested, one thing is for sure: You’re not going to let just ANYONE buy your home. You have standards, after all.

So, when the last buyer came knocking on your door with an offer, you were tempted to slam it shut again. Why were they so interested in yours? Should you accept their cash offer or seek a more ‘traditional’ buyer? 

Well, it depends on your situation. Here’re pointers to help you determine whether to accept a cash offer or show the buyer the door:

1. You Need Cash Quickly

Cash offers usually close faster than other real estate transactions, as there is no waiting around for financing. If you need to move quickly or have pressing financial needs, a cash offer might be your best bet.

Of course, if you’re in no hurry and your house is priced appropriately, don’t be quick to accept the first offer. You can always wait a few weeks and see if other offers come in.

Conversely, opting for the traditional approach could mean waiting for the buyer to get their mortgage approved. Plus, there’s the added hassle of underwriting, meaning it could be months before you finalize the deal.

1. A Foreclosure Is On The Cards

Tapping a cash offer can help you dodge foreclosure if you’re behind on your mortgage payments. It provides a quick and easy exit strategy and may allow you to get more cash than what you initially owed on your home.

Sure, it’s a tough choice, but it might be worth considering if an eviction or short sale is your only alternative option. Besides, a foreclosure can ruin your credit, making it difficult for you to get any loan in the future.

1. You Don’t Need To Worry About Fixing Anything

Selling a house can be a pain. You need to repair and maintain the property before you can even put it on the market. Then you have to stage it, list it, or rope in a realtor. After that, you keep your fingers crossed while waiting for offers to stream in.

Still, if a lender is in the picture, you must contend with their inspection, appraisal, repair requirements, and God knows what else! The stress of all this can be too much to handle.

Cash buyers are often more flexible and can make an offer contingent on inspection results, saving you time and effort. Thus, you don’t need to worry about the extra work – the buyer may even take it off your hands as-is. If the repairs you need are costly, you might be better off sealing the cash deal and running.

1. You Want to Avoid Commissions And Fees

Realtors and brokers can be pricey. From commissions to closing costs and other fees, it all adds up and could leave you with a few hundred (or thousand) less than you expected. But hey, that’s the price you pay for inviting them to your ‘house party.’

A cash offer, however, usually comes with zero commissions and closing costs – apart from the taxes you need to pay, that is. As such, if you’re looking to keep more money in your pocket, it could be a good option. 

1. Your House Has Been On The Market For Too Long

Nobody wants to have their house on the market forever. Even the most patient homeowner gets antsy after a few months. Hence, if your house is already close to breaking that record, accepting a cash offer might suffice.

But, if you are okay with waiting a little longer, you might hold out for a higher offer. Nonetheless, weigh the pros and cons before deciding. 

In the final analysis, deciding whether to accept a cash offer for your house is always challenging. But if any of the above scenarios apply or you want to take advantage of a quick sale, you might embrace the offer and close the deal. Even so, evaluate your situation thoroughly before deciding.