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:
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.