If you don’t want to sell your home the traditional way, working with a cash buyer may be a good option.
Selling the traditional way can take a lot of time and money, with tasks like fixing up the house and keeping up with showings and open houses. Cash home buyers are a fast and easy alternative, especially if you need to sell quickly due to a sudden move, inherited property, or a desire to avoid a complicated home sale.
What is a "cash home buyer?"
Cash home buyer is a term that refers to real estate investors who purchase houses without traditional 30-year mortgage financing. When you sell your house to a cash home buyer, they typically have a few different ways to secure funds to buy your house. Some may have the full amount available in their bank account, while others use non-traditional financing options that aren’t tied to FHA loans. This means that when a cash buyer purchases a house, it doesn’t have to meet the strict requirements that FHA loans impose, and they are able to buy houses “as is.” While a "cash offer" does not mean you’ll receive a physical bag of cash at closing, you can rest assured that the funds will be securely wired directly to your bank account upon closing.
Are cash home buyers legitimate?
With the prevalence of real estate scams, it’s important to exercise caution when searching for a cash home buyer to partner with during your home sale. Legitimate buyers maintain a transparent process, have an established online presence with reviews, and offer clear terms of service.
To protect yourself from scams, you will need to do your due diligence. Always research the buyer thoroughly, verify their credentials, and read reviews from previous sellers.
Selling to a cash home buyer vs. selling with a real estate agent
Selling a home through a real estate agent involves multiple stages, including property preparation, listing, showings, negotiations, and closing. You’ll have to account for upfront selling costs, agent commissions, and possible holding costs. An agent will assist you with the entire selling process, from staging and showing your house to negotiating with buyers and closing the sale.
Cash home buyers can simplify the home-selling process by making direct cash offers and closing transactions faster than with an agent. You eliminate the need for staging and showings and can significantly reduce your upfront selling costs.
| Element of the sale | Working with an agent | Partnering with a cash buyer |
| Timeline | 55 days on the market, on average. | Typically close in a matter of weeks |
| Repairs and renovations | Make necessary repairs and updates, deep clean and declutter your space. | None |
| Staging and showings | May need to hire professional staging services, consider scheduling showings or making additional living arrangements during the sale. | None |
| Home inspections | The results of a home inspection may require you to make repairs, offer concessions, or negotiate the sale price. | A cash buyer may perform an inspection during their evaluation of your property. It depends on the investor. |
| Appraisals | If your buyer is getting a mortgage loan, an independent appraisal will be required before closing. | Cash home buyers don’t always require appraisals. It can depend on the outcome of the initial evaluation or how the investor operates. |
| Closing costs | You will be responsible for paying closing costs, including escrow fees, taxes, and title insurance. | Many cash buyers, like HomeVestors®, pay typical closing costs. |
Why should you sell to a cash home buyer?
Selling to a cash home buyer offers several advantages. By selling your home for cash, you can get a home sale with:
- Speed: Cash buyers offer quick closings, often within weeks of accepting an offer.
- Convenience: You can sell your home “as is,” in its current condition without the need for repairs or renovations.
- Flexibility: When you work with a cash home buyer, you can sell on a timeline that better suits your needs.
What types of companies buy houses for cash?
There are many types of companies that buy houses for cash. These include:
- Franchise cash buyers: These are local businesses operating under national brands, such as HomeVestors®.
- iBuyers: They use technology-driven platforms to make instant cash offers online.
- Fix-and-flip investors: These investors purchase properties to renovate and sell for a profit.
- Buy-and-hold investors: They acquire properties as long-term investments, often with the intent to rent them out.
- Trade-in buyers: Facilitate simultaneous transactions where homeowners trade their current property for another.
Who buys houses for cash?
Several reputable companies buy houses for cash. Here at HomeVestors®, we’re a franchise network of local property buyers. We buy houses in a streamlined selling process that eliminates a lot of the confusion, time, and energy that come with a traditional home sale. Other cash home-buying companies include:
- Realtor.com
- Opendoor
- Homelight
- Offerpad
- Orchard
- Upnest
- Ownerly
- US Landvestors
- Berkshire Hathaway Real Estate
- Zillow
Each company offers unique services catering to different seller needs, from instant cash offers to facilitating trade-ins.
Is selling your house to a cash home buyer right for you?
Whether you’re looking to downsize, relocate, or avoid the hassles of a traditional home sale, the choice of whether or not to sell to a cash home buyer depends on your circumstances. You may want to partner with a cash buyer if you prioritize:
- Urgency: You want to sell quickly without any additional steps or unnecessary delays.
- Affordability: You prefer to sell with reduced selling costs and without making repairs or renovations.
- Simplicity: You have a desire for a straightforward, hassle-free transaction.
You should consider all your options carefully and evaluate what matters most to you in the selling process.
Sell your house fast with HomeVestors®.
When you want a cash home offer, there are many companies to consider. It’s important to understand how each one operates. We simplify the process by buying houses "as is," meaning your property doesn’t need to meet the inspection requirements of a traditional 30-year mortgage.
When you want to sell your home in a private, personalized transaction, partner with HomeVestors®. We’re America’s trusted home buyer, and we’ve been in the business of buying houses and helping homeowners for the past 29 years.
With our 3-step home-buying process, we can take you from offer to closing quickly, sometimes in as little as 3 weeks. It works like this:
- Get a free consultation.
- Receive an offer.
- Schedule a fast closing.
At HomeVestors, we understand that selling your home is a significant decision. That’s why we offer The HomeVestors Advantage. With our 3-day option period, you can take the time to consider your sale and feel confident in your choice. If you decide to not move forward with the sale, simply notify your HomeVestors property buyer within 3 days of signing the contract.
We pay all typical closing costs, and we don’t charge any commissions or hidden fees.† Ready to partner with an off-market home buyer to get a fast home sale? Reach out to HomeVestors today to start your selling journey with a complimentary consultation.
This blog is for informational purposes only and should not be considered legal advice.
