The National Association of Realtors annual report shows that there were approximately 5.34 existing-home transactions in 2019. Nearly 88% of the sales were through the MLS. The statistics show a growing admiration for “For Sale by Owner” transactions.
Selling to a cash home buyer provides an attractive alternative to listing your home on the market. However, the cynicism attached to “We Buy Homes” adverts makes some homeowners distrusting Kansas City home buyers willing to purchase their home with cash. Before you brush off the cash for homes offer from the real estate investors, here are five myths and misconceptions that you may need to drop.
Common Myths About Selling to Cash Home Buyers
1. You Lose Money When You Sell A Home Fast for Cash
Most homeowners live in fear of receiving a low-ball offer for their house. You may not receive a retail value offer for your home but get to enjoy the full amount paid. You can avoid any costs of repairs or part with staging and photography fees. Besides, you do not have to pay out the 3-6% agent’s commissions for the transaction. You get to save much more by opting to sell a home quickly for cash.
2. Cash Home Buyers Are Out to Defraud You
Another common misconception is that private investors are out to scam homeowners. Most real estate investors in Kansas City view the home buying process as a part of their business operations. To quell any fears that you may have, take time to research the potential buyers. Visit their physical offices and read reviews about their business. Additionally, you can request to see a proof of funds letter from their financier. The document proves that the home buyers have enough money in their accounts to facilitate the transaction.
3. Your Negotiations Will Take Forever
Your real estate agent may have suggested that it may take longer to sell your house directly than through a realtor. However, statistics from the NAR show otherwise. The 2019 annual report shows that listed homes took an average of 64 to 95 days from listing to closing. The same report indicated that sales through FSBO took less than two weeks to complete. Selling a home to cash buyers can have you closing within a week. You receive an instant cash offer after a walk of your property.
4. You Need to Upgrade and Renovate to Attract Buyers
Most realtors recommend renovating homes to make them more attractive to potential buyers. However, cash home buyers have less interest in the current condition of the home. Issues that would raise eyebrows in the traditional market may not bother them. You get to sell your house as-is, without the need for expensive repairs.
5. Cash Home Buyers Have Contingencies in Place
Most homeowners also fear that cash home buyers will drop out of a deal, leaving the home unsold for long periods. Truthfully, there is less risk of your deal falling through when working with cash investors than with mortgage buyers. Delayed or rejected mortgages are a common occurrence. Real estate investors are wary of their reputation within the community and have fewer contingencies in place.
Cash home buyers are an excellent option for you if you wish to sell a home fast in Kansas City. It would be best if you did not let these myths hold you back from a great deal. Contact Faithful Home Buyers to receive an instant cash offer and pick your preferred closing date.