Selling Your House for Cash is the Quickest way in the Pandemic
When it comes to selling a home it can be daunting and also very stressful. Often someone wants to sell their home very quickly but the process can take a considerable amount of time adding inconvenience and more stress.
While the real estate business thrived in 2019 the same could not be said for the start of last year. The market crashed as the coronavirus pandemic took a grip on everyone’s lives. People lost jobs, businesses closed, houses remained unsold.
What should you do if you find yourself in the position of wanting to sell a house quickly now but have less chance of making a quick sale?
Why has the pandemic made it harder to sell your home?
The housing market becomes sluggish at different points. Traditionally, home sales slow down around holiday periods as people are less willing to move over Christmas or Thanksgiving. The pandemic has added more reasons for the housing market to slow down though.
As the pandemic and lockdowns hit people, house sales slowed too everywhere. In the UK, house completions fell by 50% during the second quarter while Miami reported that sales were the lowest in a decade.
The reasons that the pandemic affected house sales were varied but included:
- Unemployment or lower-income
- Travel restrictions
- Fear of traveling or of contagion
- Social distancing made viewings and closures difficult
- Previously saved deposits were spent while jobless
Although house sales are picking up again, it is now very difficult for first-time buyers to recover from the financial difficulties of 2020.
Why is selling a house for cash quicker than other routes?
While there are certain considerations to be made when accepting an all-cash offer, the one benefit that most would agree on is that it is the quickest house selling process available.
There are many other options available to a home seller but few of them can match a cash sale for 2 reasons; speed and a guaranteed sale.
Cash sales are quick
If you choose to sell your home to a property investor or another cash buyer you will avoid being caught up in any home-loan problems. If a buyer is having problems with their financing then this can drag the process on for some time.
Cash sales are guaranteed
Depending on how you choose to sell your home you could find you get a guaranteed sale. Many property investors guarantee to make an offer regardless of the property. A guaranteed sale is very useful if you have problems with the house title or if extensive repairs need doing.
Why would you need to sell a home quickly?
To many, it may seem strange that someone would need to offload a home very quickly, perhaps even within a week. But, for many others, selling a home quickly may be a necessity.
Although foreclosures have been steadily dropping since 2010 when filings were made on 2.9 million properties, there were still nearly half a million in 2019.
Apart from avoiding foreclosures, there are also many other reasons that people need to sell a home fast:
- Tax problems
- Legal issues
These are just some of the causes for someone requiring a quick case sale.
What do you gain from using a cash buyer?
Selling through a real estate agent requires photographing the home, possibly making repairs, decluttering it, advertising it, arranging viewings, and legal processes to go through before you make a sale. This can all take months from the moment you appoint an agent to the actual completion.
Cash home buyers will generally make an offer on your house and can then complete everything within a matter of days or so. The upside to doing this is that you can sell the house as-is, without repairs or even decluttering. You will also save money as the buyer takes care of all closing fees.
You don’t even have to attend the closing in many cases which makes it ideal if you are unable or unwilling to travel during the ongoing pandemic.
Are there any downsides to cash buyers?
Every deal has a trade-off and with selling to property investors you are likely to receive less than you would from other traditional means such as through a real estate agent.
This reduction in the sale price is offset against the speed it takes to sell your unwanted home and receive your cash. The decision any seller needs to make is how long do they really want to wait to sell their home?
Inheriting a house sounds lovely and indeed, it normally is, but sometimes people find themselves unable to use the home or there could be tax problems. As well as debt, divorce, and unemployment, there are many other reasons to use a cash buyer. Whether the pandemic ends or not, selling a home for cash is the quickest way today.