When you sell your home for cash, you might be pleasantly surprised to learn that you don’t have to pay commission and often, no closing costs. Since a cash home sale is a direct transaction between you and the buyer, you could save thousands of dollars on selling expenses.
What Is a Cash Buyer?
All types of cash buyers have something in common: they have the funds to buy directly from you. Occasionally, a cash buyer may be an individual who wants to purchase your home for personal use. More commonly, the cash buyer will be a group or company that purchases homes as investments, either for rental properties or for resale.
In a cash sale, your home is marketed to the public. Cash buying companies don’t employ sales agents or have expenses like website upkeep or printing costs. Because of this, they don’t have to charge a commission.
How Does the Cash Sale Process Work?
In the majority of cash home sales, you take the initiative. You contact a cash home buying company in your area and request a cash offer. Often, they will send a representative out to your home to meet you, but there are no formal inspections.
Within a day or so, the company will give you a no-obligation cash offer in writing. If you accept, you can choose a closing date, often within a week or two. If you still owe money on your home, you’ll have to contact your lender to make arrangements to transfer the title.
Why Don’t You Pay Closing Costs?
When the closing date arrives, you meet with the cash buyer at a title company. You sign the papers and hand over the keys. Unlike a traditional sale, no money is deducted from your sales proceeds for a commission or to pay any third parties.
Almost all cash buying companies will also pay the other minor taxes and fees associated with the deed transfer. In total, you pay nothing. You will receive the total amount you were offered.
When you sell your house through a broker, you will be charged a commission to pay the salaries of salespeople and for marketing costs. Selling to a cash home buying company eliminates all those expenses. They don’t charge closing costs because they don’t have to.
Looking to sell your Utah home quickly? Learn more about the cash sale process by clicking here.