Quick Cash Sale

The fastest way to sell any home is to sell it to a CASH buyer. This is because the cash buyer does not need to get qualified for a loan or wait for loan documents to be drawn up. Cash buyers can make decisions quickly. Cash buyers can also take care of all closing costs, back payments or taxes, or whatever it takes to get the deal closed. A non-cash buyer typically requires about 30-60 days to close on a home – most of that time is spent waiting for the lender to approve everything. Additionally, lenders require inspections, surveys, an appraisal, and possibly even repairs that cash buyers do not require. A cash buyer can close virtually immediately.

The disadvantage to selling for cash can be the price. Virtually 100% of cash buyers are investors that are buying the home so that it can eventually be resold. This “flipping” of the property means that the cash buyer has certain overhead expenses that must be covered in the transaction.

For example, the cash buyer will have to pay the following expenses:

    • Closing costs on the purchase (2%)
    • Commissions on the resale (6%)
    • Closing costs on the resale (3%)
    • Monthly carrying costs until the home is resold (~4-5% typical)
    • Needed repairs/remodeling ($5-10K to $100K+)

These costs total to ~15% or more of the resale value of the home, which means that cash buyers can only afford to buy the home at 55% to 65% of its full market value in order to make a modest profit.

When you see a sign saying “I Buy Houses For Cash” it means “I’ll pay you about 60% of the homes value, and do it fast”. For some people, such as sellers with lots of equity that need or want money quickly, this is a great deal. For others with little or no equity, or that want to make more money selling the home, this is not an option.

Galveston Home Buyers will buy your home for cash and offer you several other options. Contact us if you would like to explore this further.