When selling a home or property, you have two primary options: Sell it directly to a cash buyer, or list it with a real estate agent. Both have their advantages and disadvantages.
Selling your house to a cash buyer is easier, but you won’t be sure you are getting the highest amount. Listing with an agent might bring a higher offer, but it will probably take longer, and you will pay both the listing agent and buyer’s agent from your proceeds.
That being said, should you sell your house to a cash buyer or list with an agent? In this roundup blog, we've compiled essential insights to help sellers determine what’s best for their unique situation.
Cash Home Buyers vs Traditional Realtors: Definitions
Cash Home Buyers
Cash home buyers are individuals or companies that purchase properties directly from homeowners without the need for financing from banks or mortgage lenders. These buyers typically offer a quick and hassle-free sale process, as they are able to purchase properties with their own funds, often in as-is condition. Cash home buyers may include real estate investors, companies specializing in buying properties for investment purposes, or individuals looking for a straightforward transaction.
Traditional Realtors
Traditional realtors are licensed professionals who assist homeowners in selling their properties through the conventional real estate market. They provide services such as property valuation, marketing, showing, negotiation, and paperwork assistance. Traditional realtors typically list properties on multiple listing services (MLS) and utilize various marketing strategies to attract
potential buyers. They often guide sellers through the entire selling process, including handling offers, inspections, and closing procedures. Traditional realtors earn a commission based on the final sale price of the property.
Cash Home Buyers vs Traditional Realtors: Why Should Someone Sell Their Home to a Cash Home Buyer as Opposed to a Real Estate Agent?
Here’s what our franchise owners say about why someone should sell their home to a cash home buyer as opposed to a real estate agent.
1. Receive Funds Quickly
If you're in need of receiving funds for your property as quickly as possible, a cash offer is the best solution. Cash home buyers typically offer a faster sale process compared to traditional real estate transactions, which involve listings, showings, negotiations, and waiting for mortgage approvals.”
Robert Ware - Dover, DE
2. Close in as Little as 7 Days
Cash buyers can make the process much quicker and put more money in the pockets of the seller. We cover closing costs, do our own inspections, and sellers don't need an appraisal. You can get a deal done in as quick as 7 days!”
Chance Lewis - Charlotte, NC
3. Pocket More Money
No commissions so sellers can pocket more money, no showings inconveniently coming to the house on short notice, quick closing, and no inspections or appraisal making it less likely for the for deal to fall apart. Realtors can over promise and under deliver. For example, they say they can list and sell your house for $400k, it sits on the market, you are locked into a 6-month contract with them and they have you reduce the price over and over. It eventually sells for $300k or never sells. A seller can determine what is best for them by giving us a call.”
Tom Winspear - Knoxville, TN
4. Provides a Personal Experience
There are fewer fees and a quicker close time when dealing with a cash buyer vs. a real estate agent. Working with a cash buyer provides a more personal experience. A seller should be able to work with someone who can personalize the experience to meet their specific needs for selling their home.”
Shannon Drye & Stephen Haynes - Morristown, TN
5. No Pressure
When working with New Again Houses, sellers will experience a hassle free, quick close with a high integrity team that will hold your hand throughout the process and beautifully renovate your old house. They can have a no pressure call with us, and we will take the time to listen to them and understand their needs. Even if selling on the market seems like the better option for them, we will happily connect them with a qualified real estate agent.”
Mike Heist - Monmouth County, NJ
6. Sell Your Home As-Is
Cash home buyers often purchase properties as-is, relieving sellers of the need for repairs, inspections, and staging, which are common requirements in traditional sales facilitated by real estate agents.”
Robert Ware - Dover, DE
7. Easier Transaction
The most significant benefit of a cash offer is the potential for an overall easier transaction. Cash buyers are usually ready to place an offer on the home and close in a very short amount of time. They do not need to wait for a bank’s approval to sign the papers and finalize the purchase of the property. This can save sellers the stress of financing challenges that could delay the sale of the home. For these reasons, cash offers typically result in faster closing timelines. For example, here at New Again Houses Indy Northwest, we average a Five-day closing period as opposed to the traditional 30-day closing.”
Eric Spersrud - NW Indianapolis, IN
8. Save Money at Closing
Selling to a direct cash home buyer allows you to save money at closing as you will avoid paying real estate commission and often can negotiate for the buyer to pay most of the closing costs. Also, cash buyers can usually close very quickly (usually 7 to 14 business days!)”
Katrina Stratton - Anderson, SC
9. Certainty
Cash transactions eliminate the risk of deals falling through due to financing issues, which can happen with buyers relying on mortgage approvals.”
Robert Ware - Dover, DE
10. Customized to Your Needs
Sellers should consider selling to a cash home buyer because we can work directly with the seller to create a selling experience that is customized their needs! We can customize a sale based on their schedule, handle their closing costs, solve probate issues, and give an offer immediately after inspection. A seller can decide what's best for them by determining if they have a complicated situation that needs a quick solution!”
Chance Lewis - Charlotte, NC
11. Quick & Straightforward Process
Selling a home to a cash buyer can be advantageous for those seeking a quick and straightforward process, especially if they need to sell promptly or want to avoid the complexities of traditional transactions. Cash buyers often purchase homes in as-is condition, providing a hassle-free option for sellers with properties that may require repairs. The process is typically more private and involves fewer fees compared to selling through a real estate agent.
Jessica Hollingsworth - Jackson, MS
However, sellers should carefully consider their financial goals, timeline, property condition, and market conditions. If maximizing profit is a priority and time is not a pressing concern, working with a real estate agent may lead to a higher sale price, even though it might involve a longer process and commission fees. It's crucial to weigh the pros and cons of each option and choose the one that aligns with specific goals and circumstances.”
Cash Home Buyers vs Traditional Realtors: Additional Determining Factors
What Is the House’s Condition?
Most inherited houses have deferred maintenance and need to be updated. If, however, the house is in good enough condition that a buyer could get financing and be happy, you should probably list it and let your agent market it to the highest number of buyers. If it’s in good condition, the additional amount you’ll get on the market will probably exceed the agent commissions.
However, if the house needs work, it will be a cash buyer who most likely buys it on the market. It might then make sense to sell to a cash buyer who will add value to the house through a remodel. By selling your house directly to a cash buyer, you can avoid the hassle and costs of listing with an agent.
How Much Time Do You Have?
Selling a house to an investor with cash is pretty easy and fast. They can typically close within a week and you don’t even have to clean anything up. A cash buyer usually does all the cleanout and can even help solve probate issues that might come up.
While an agent will handle a lot of the work that comes with listing a house, you’ll still have to deal with negotiating offers, inspections, and the time it takes to go through the process. Many market contracts fall through due to inspections. That can significantly increase the cycle time of selling a house. And don’t forget to count the costs of holding the house for a few months while it goes through the process.
Do You Care What Happens to the House?
For many families who have inherited property, it’s not just a house. It’s the centerpiece of your family’s story. You might care if the buyer is going to invest in the house or simply turn it into a cheap rental property.
If it’s in good condition, it will probably become another family’s home where they raise their children. If it’s in poor condition, it will likely be purchased by a cash buyer who flips homes who will invest in it or a landlord who might rent it with the least amount of work possible. There’s also a chance the market buyer will be a landlord who will put in the least amount possible. By choosing a real estate investor who will invest tens of thousands of dollars into a remodel, you will know the house will be preserved and enjoyed by families for years to come.
Cash Home Buyers vs Traditional Realtors: What Can Help a Seller Determine What's Best for Them?
Determining whether cash home buyers or traditional realtors are the better option for selling a property depends on various factors that cater to the seller's needs and priorities.
Cash home buyers offer a swift and straightforward process, typically completing transactions faster than traditional realtors. Sellers seeking quick transactions, perhaps due to urgent financial needs or property-related concerns, may find cash buyers more appealing.
On the other hand, traditional realtors provide comprehensive services, including marketing, negotiating, and handling paperwork. Sellers who prioritize achieving the highest possible sale price or who value extensive market exposure and professional guidance may lean towards working with traditional realtors.
Evaluating time constraints, financial goals, and the desired level of involvement in the selling process can help sellers determine which option aligns best with their circumstances and objectives.
Want to Avoid the Hassle of Listing with a Traditional Real Estate Agent? Contact the Cash Home Buyers at New Again Houses Today!
Avoid the hassle of listing your home with a traditional real estate agent and experience the benefits of selling a house for cash with New Again Houses. No waiting, no contingencies, no banks, no repairs, and no need to clean up the house. We buy houses with cash in as-is condition, and we can close in as little as 7 days.
New Again Houses® was founded in 2008 as a way to transform old houses into new modern homes through a culture of innovation, ownership, and win-win relationships. For homeowners looking to sell their home fast and sell their home for cash, New Again Houses is the perfect place to get started! Contact New Again Houses today and sell your house in any condition!
