Are you looking to sell your home quickly and conveniently? You may have heard of cash home buyers, but what are they? Who are they? Here's what you need to know about cash home buyers and why they may not be as elusive as you think.
What Are Cash Home Buyers?
Cash home buyers are essentially investors who purchase homes with cash. They do not need traditional financing to purchase your home but rather have the cash on hand and available for the purchase.
Who Has Cash to Buy a Home?
A cash home buyer may seem like a bit of a unicorn. Who has that much cash lying around? However, it is far more common than you think. In 2022, over 30 percent of all home sales were bought with cash. A cash buyer could be:
- An investor
- Someone who has already sold their home and made a profit
- Someone who is downsizing from a larger home and has additional funds available
Additionally, affluent people may prefer to pay cash now that interest rates are on the rise.
What Are the Benefits of a Cash Buyer for Sellers?
One of the biggest benefits of selling your property to a cash home buyer is that you don't have to go through the stress of a lengthy closing process, wondering if the buyer's bank will fund their loan. Instead, a cash buyer typically provides a letter from their bank stating that they have the funds in their account and are available for the purchase. In other words, because these buyers pay in cash, there is no risk of the deal falling through due to financing issues or other problems that can happen during traditional sales. This advantage means that you can close and get paid faster.
What Are the Drawbacks for Other Buyers?
Money talks. Unfortunately, for the average buyer trying to find a home, cash home buyers are highly desirable. If a seller is presented with two offers, they will likely take the all-cash offer, leaving average buyers to continue their search, often in frustration. This buying trend could also mean that other potential buyers may find themselves priced out of the market.
Cash home buyers are becoming increasingly popular in today's market, as they offer the convenience of a quick close with no risk. However, this trend could mean you are priced out of the market when competing against these cash offers. It is important to understand who cash home buyers are and how you can navigate through this new norm.
Reach out to cash home buyers to learn more.