Here’s what you need to know about the different types of real estate cash buyers. So keep reading — We hope this helps you make the best decision!
What is a cash buyer?
Plainly speaking, a cash buyer is any individual, group, or company that purchases a property with cash.
This means a cash buyer relies on something other than financing to purchase the property. Instead of taking out a loan, they put down 100% of their money upfront. The seller receives immediate payment for what they’re owed while avoiding any additional fees associated with traditional financing methods, like mortgages or lines of credit.
Cash buyers are a significant portion of the real estate market, and they’re not going anywhere. In fact, many people prefer cash buyers because they’re usually able to close fast and without any surprises.
Benefits of selling your house to a cash buyer
- You can sell your house quickly.
- You won’t be showing your home over and over again.
- You don’t have to pay real estate commissions and other fees.
- You don’t have to wait for the buyer to get financing from a bank or mortgage lender.
- The process generally involves less risk than selling through an agent because it eliminates the need for multiple steps involved with traditional sales (finding a buyer and then waiting for them to get financing). This means there’s less paperwork involved, too!
Types of Real Estate Cash Buyers
1. Individual Cash Buyers
They are individuals or families who have previously sold a property and now have the cash to purchase another property outright. These buyers can be referred to as “cash buyers” because they don’t need a mortgage to buy the property.
Wholesalers are real estate investors who buy homes at a discount, then sell them for a profit. The wholesaler is an intermediary between you as the seller and the end buyer.
They may assign their rights in the contract to another investor or a final user buyer at a higher price than what they contracted with you, keeping the difference.
Wholesalers work relatively fast and don’t require repairs or renovations. However, this method carries more risk than other types of cash selling, because the wholesaler may break the contract if he cannot find a buyer.
An iBuyer is an online real estate investor that uses technology to make cash offers quickly.
IBuyers have their own funding and don’t need to rely on banks. Because of this, they can move much faster than individual investors who need to go through mortgage brokers and lenders.
Most iBuyers pay cash for houses and take care of all the details related to selling your home.
However, these processes may take place without any representatives visiting your home — which means you’d need to trust that the iBuyer is making a fair offer for your house.
If you’re selling your house to a buyer, it’s important to understand who you’re dealing with.
Learn more about ibuyers and how they compare to real estate investors in our blog.
4. Local Real Estate Investors
Local real estate investors are your best bet if you want to sell your house fast. Unlike wholesalers, they don’t have to deal with the hassle of finding a new buyer, so they can make a fair offer and close quickly. You won’t be stuck in limbo while someone else tries to sell your home.
You’ll also save money by selling directly to an investor instead of involving an agent. They won’t charge any fees or commissions on top of the agreed-upon price for buying your house (which means more cash in your pocket).
Looking for the smartest way to sell your house for cash in Oregon? At Columbia Redevelopment, we can help. Find out why selling to us is a great choice.
What about selling the traditional way?
Selling your house with the help of a real estate agent is still an option (although it’s not as fast and easy as selling to a cash buyer).
Real estate agents earn a commission for selling houses. Their commissions are paid by the seller, not the buyer, so it doesn’t matter if your home sells quickly or slowly — the real estate agent gets paid either way.
A good real estate agent can help you sell your home while avoiding any pitfalls along the way. However, this option does have some drawbacks, like:
- You’ll need to fix any issues your home has before selling it.
- The process often takes several months to complete — cash buyers like Columbia Redevelopment can close the deal within days.
- You’ll have to deal with the stress of having multiple potential buyers come to your home.
Selling your house for cash is a great idea
Cash buyers are definitely the best option if you’re in a hurry to sell your home. These buyers pay cash for homes and don’t have to go through the months-long process of applying for mortgage loans.
Many home sellers like the prospect of accepting cash offers because there is less risk of the deal falling through due to financing problems. Also, some cash buyers often have more flexibility when it comes to purchasing properties, so they’ll be able to accommodate some unique circumstances or special requests from sellers.