Listing your home on the market carries with it some risks. You never know how long it will be before you get an offer, and then the offer may be less than you were hoping for. Even if you accept the offer, you will definitely end up with less money than that due to closing costs. Considering all the expenses involved in selling a house, you could save money by selling your home for cash.
Fixing Up Your Home
Before you can think about listing your home, you have to fix it up. That means shelling out thousands of dollars for repairs, cleaning, and improvements. Even if you do the work yourself, you still have to pay for parts and supplies.
In a cash buy, you don’t have to do anything to your house. The cash buyer doesn’t care about the appearance. The cash buyer examines the condition of the house and takes responsibility for making any repairs that might be needed.
Paying Ongoing Expenses
After you’ve listed your home, you’ll need to keep paying ongoing bills until the official closing. On average, that takes about 3-6 months, even in a “hot” market. If your home is being sold “as is,” it may take even longer.
With a cash sale, you can have cash for your home within a few days. Once you’ve signed the papers and turned over the keys, the taxes, insurance, and utilities are the buyer’s problems. You are free to take your cash and walk away.
Commission and Closing Costs
In a traditional closing, the amount deducted for commission and other costs can be a big shock. In some areas, commissions run as high as 6% of the sale. A cash sale eliminates these deductions.
When you close on a cash sale, you don’t pay a commission because it’s a direct sale; there is no sales agent that serves as a middleman. You won’t pay for any inspections, appraisals, or any other fees.
Every home and situation is different, so it’s important to learn as much as you can about cash sales and compare them to the traditional method of home selling. Then, sit down and do the math. You may find that a cash sale will save you money.
Learn how a cash sale may save you money when selling your Utah area home by clicking here.