Selling your home comes with a lot of decisions. The first you might encounter is how you will sell your home. When you sell directly to a buyer, you engage in a sale where the buyer doesn’t need to be backed by a loan in order to purchase your home. When you don’t sell directly to buyers, you can encounter several challenges.
A Longer Timeline
An average buyer will need to get a mortgage loan in order to purchase a home. First, they need to apply for a mortgage and prove that they will reliably pay back the loan. Once they’ve made an offer on your home, the mortgage lender will review the property to make sure it is a sound investment. This process will greatly extend the sale time since you need to wait for it to be completed first. However, if you sell directly to a buyer you can avoid this problem. Selling to a cash buyer, for example, means you don’t need to wait for a loan approval. You can get started with the sale process as soon as the buyer makes an offer.
More Steps to Complete
When there’s a mortgage involved, there is more that needs to take place in order to sell. First of all, the property must be appraised in order to determine its value. It can take about a week to schedule an appraisal. Additionally, the property also needs to be inspected. This inspection will determine if there is any damage or hazards present. An inspection can also let the buyer know what potential repairs they’ll need to do. Again, this will take a week to schedule and then complete. In a cash sale, you don’t need to bother having an appraisal or inspection done unless your buyer specifically requests it.
Higher Closing Costs
In a cash sale, you and the buyer are the only ones involved. You don’t need to worry about working with real estate agents in order to get your home sold. However, if you sell to a typical buyer and work with real estate agents, then you open yourself up to higher costs. The seller is responsible for paying the commission of both real estate agents. This equates to about 6% of the sale price and it can be a very large sum to pay. When you sell to a cash buyer, you can depend on much lower closing costs.
Selling direct to buyer presents you with many benefits. The sale of your home will be much faster, easier, and cheaper. For the best results, you should consider selling to a home buying company.
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