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Vayna Jerabek, owner of the VM Home Team, shows us the Pros & Cons in Selling your House to a Cash Buyer!

Selling your house to a cash buyer is a popular option for those looking to quickly sell their property without the hassle of a traditional home sale. In this type of transaction, a real estate investor or company buys the house outright for cash, usually offering a quick closing and no contingencies.

With the rise of iBuyers like Homelight, Open-door, even Zillow has a buying division, there's a lot of confusion on what they actually are and what the difference is between listing your house on the market or selling directly to a cash buyer. Listing and selling direct for cash are just two different selling option for a variety of scenarios. So let’s talk about some of the key differences between these two methods, and if you still have questions by the end feel free to drop a comment or contact me directly, there will be a link to my calendar in the description box below.

1. Timing: Listing a property on the market can take time. Depending on the local market conditions, it can take several weeks or even months to find a buyer and complete the transaction. In contrast, selling to a cash buyer can typically be completed much faster, often within a few weeks or even days.
2. Convenience: Listing a property on the market requires preparing the home for showings, hosting open houses, and dealing with potential buyer negotiations. This can be time-consuming and inconvenient for you as the seller, especially if you’re living in the property. Selling to a cash buyer can be a more convenient option since we are open, and oftentimes even prefer, to purchase the property in its current condition, without any repairs or renovations needed on your end.
3. Price: When listing your property on the market, you may be able to receive a higher price since you’ll have access to a larger pool of potential buyers. However, you will end up paying real estate commissions and closing costs, which can reduce the overall profit. Selling to a cash buyer typically involves fewer fees and commissions, but the price offered may be lower than what the seller could receive on the open market. You’re essentially sacrificing what could be your highest possible offer, for ease and convenience of the sale.
4. Certainty: When you sell to a cash buyer, the transaction is often more certain since we as the buyer are not relying on financing to complete the purchase. This means there is less risk of the deal falling through due to issues with the buyer financing. We as the buyer even put down a non-refundable earnest money deposit in some cases for extra certainty that we’re so sure that we’ll close, that here’s $1,000 for free in case we don’t. In contrast, when listing a property on the market, the seller may need to deal with potential issues with traditional buyer financing, which can cause delays or even lead to the deal falling through. We probably see that the most, where the buyer backs out right before closing because the lender couldn’t get them final loan approval, and because they’re protected by that contingency they get to walk away and you as the seller are left with nothing. It’s usually the worst case scenario.
5. Conditions: Like we just mentioned, selling to a cash buyer may involve fewer contingencies or conditions than listing on the market. For example, the buyer may not require a home inspection or appraisal, which can simplify the transaction process. However, this also means that the seller may not have as much protection in the transaction as they would when selling on the open market.

Ultimately, the decision to list a property on the market or sell to a cash buyer will depend on your goals, circumstances, and our local market conditions. As local real estate professionals here in Washington we make it our job to analyze your property, hear your situation and goals, and work with you to consider the pros and cons of each method and weigh them against your priorities to determine the best approach. There’s a couple different ways for us to connect, there’s a link below to fill out a form to share details on your property and your contact info, and me or my team will reach out within 24 hours, or you can book a call on my calendar at a time of your choosing to chat with us and find out what the next steps for you are to start the process of selling your home. Whatever works best for your schedule and current situation, we are a resource to you to get you what you want in the time you want. Thanks for watching this video, subscribe for more tips and tricks on selling and Seattle real estate, and we’ll talk to you soon.

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