Most home sellers now find the idea of an all-cash deal appealing. And that extends beyond selling California property for cash — it’s everywhere.
According to a report, cash sales among non-first-time buyers rose from 26.3 percent in 2019 to 33.5 percent in April 2021. Similarly, roughly 15 percent of primary residence buyers made an all-cash purchase, compared with 15 percent in 2019.
Although investors have always favored cash, they’re doing so now more than ever. So, what’s responsible for the surge in cash sales?
Some experts speculate that cash sales increased due to the performance of equity markets in this period. Meanwhile, others believe that buyers are opting for cash to gain an advantage in the competitive real estate market.
If you’re still unsure whether to sell your California property for cash, here are some things to consider.
Why You Should Sell Your California Property for Cash
Here are five reasons to accept a cash offer on your California house.
1. Fast Closing
The primary advantage of selling your California property for cash is fast closing.
The traditional home buyers have to get a mortgage approval that has to be underwritten. Unfortunately, the process is relatively lengthy, taking between 30 and 60 days. A lot can go wrong within this period. For example, the mortgage lender may refuse to offer a loan.
On the other hand, a cash sale doesn’t rely on mortgage underwriting. As a result, the deals are faster and less risky than the conventional method.
2. Stress-Free Process
There’s no denying that it’s stressful to sell a property using the traditional method.
Besides repairing your home, you also have to find an effective real estate agent. Then, there’s the issue of appraisal, inspections, and keeping your home spotless for showings and open houses.
Yes, it all sounds so taxing. Luckily, you can avoid the stress by selling your property for cash.
That’s right — there are no showings or open houses. What’s more, there’s a reduced chance of the buyer backing out or losing financing.
3. Avoid Excessive Paperwork
Another tedious aspect of the home selling process is excessive paperwork.
Sellers usually have to read a massive amount of forms before signing the papers. As you can imagine, the slightest mistake in paperwork can be costly to all the parties involved.
Meanwhile, you won’t have to worry so much when dealing with a reputable cash buyer. That’s because such an individual can handle the paperwork process for you.
With that said, not all-cash buyers offer the service. So, consider checking reviews and references to know which cash buyer can help with paperwork.
4. Save on Repairs
Since inspections are a vital part of a traditional home sale, sellers often worry about repairs.
That means the homeowners have to fix some parts of the home to boost its appeal. Otherwise, the seller may have to reduce the property’s asking price accordingly.
That’s not the case when selling for cash. With a cash sale, you have to sell your property as-is. As a result, you can save money on upgrades and repairs. What’s more, you won’t need to clean or stage.
5. No Commission Fees
According to a survey, the average real estate commission in California is 4.92 percent. It means if you’re selling California property worth $684,000, you have to pay a whopping $33,600 in realtor fees.
The good news is selling your house for cash means you’re skipping the realtor. In other words, you won’t have to pay any commission fees. With that said, consider checking for possible hidden fees before picking a cash buyer.
At this point, you know the advantages of selling your California house for cash. There’s just one last question — how?
4 Tips for Selling California Property for Cash
Here are four tips to consider if you’re looking to accept cash for your California home.
1. Research Home Buying Companies
The first thing to consider when selling your home for cash is to research various home buying companies. That way, you can determine which is the best for your home sale.
Several types of house buying companies exist today. While some buy sight-unseen, others search for local homes and participate in walkthroughs before you get a cash offer.
It’s always a good idea to note the individual differences between these services during research. That way, you can make the best-informed decision.
2. Know Your Property’s Value
The cash offer you receive for your home is usually based on your home value. As such, it’s best to know your property value beforehand.
Luckily, there are several ways to estimate a property value. These include:
- Online valuation tools
- Comparative market analysis
- FHFA House Price Index Calculator
- Hire a professional appraiser
The methods above can provide a rough estimate of your property’s value. However, cash buyers usually buy property as-is. And that can result in a lower offer.
3. Be Honest About Your Property’s Condition
Since cash buyers often buy as-is, they generally don’t care about your property value. Whether it needs an extensive update or significant renovations, you can still sell your California property for cash.
In other words, an average home degradation won’t discourage a prospective cash buyer.
That means you don’t have to lie about your property’s condition. Indeed, it’s best to be upfront about possible damages to your property and problem areas.
4. Ask Questions
The home selling process can seem complicated to the most experienced sellers.
For example, completing legal forms or estimating your home value can seem challenging to a novice. So, if you have a question about the home selling process, ask.
Cash buyers usually have extensive knowledge of the real estate industry. So, they’re in a better position to provide adequate answers to your queries.
Alternately, you can hire a knowledgeable real estate expert to make the sales process as seamless as possible.
Wrapping Up: Before Selling Your California House for Cash
If you’re looking to sell California property for cash, the first step is simple — find the right buyer.
Admittedly, a few companies often contact home sellers when they list their property. However, you may want to hold off a little to perform in-depth research.
That way, you can identify and sell to a reputable buyer that’ll submit a fair cash offer for your home.