When you think about the process of selling a house in Rhode Island or anywhere, it’s natural to think first of the real estate market. It’s the traditional way to sell a house, but it’s not the only way.
If you’re reluctant to sell your home through a realtor, or just want to try something new, it’s also possible to sell your home yourself and accept a cash offer for it. It sounds risky and off the table. If you’ve never done that before, there are all kinds of questions worth asking.
These range from wondering if accepting a cash offer on my house is safe to what are the benefits of selling a house for cash, and how this works.
Don’t worry, here’s everything you need to know, so you choose the best path for you to sell a house.
How Cash Home Buyers Work in Rhode Island
If you’ve never sold a home to a cash buyer before, then you may not know how the cash home buying process works. That can make some people hesitant to sell their homes for cash. But you don’t need to be one of those people.
At its simplest, a cash offer means that a prospective home buyer offers to purchase your house using cash instead of through a wire transfer, realtor, or other, more traditional payment.
That aside, how are cash home offers different from a mortgage, and why should you consider it?
Appraisals Aren’t Necessary
Typically, you have an appraisal done on a prospective house to ensure it’s worth the price you’re paying. But cash buyers often buy up properties lower than the asking price, making an appraisal less important.
Proof of Funds is Imperative
Whereas a mortgage exists to help prospective house buyers pay the cost of their new home over time, cash buyouts take immediate effect. That means you can’t simply walk up to a house, make an offer, and hand over the money.
Instead, once you receive a cash offer, the home buyer must prove they have the funds to make the payment. This is crucial as it saves you from selling your house for cash to a home buyer that isn’t legitimate.
That said, selling your house for cash in Rhode Island doesn’t mean you won’t experience any of the more traditional aspects of a house sale.
Cash Home Buyers Pay Similar Costs to Traditional House Buyers
One of the key similarities between selling your house for cash and selling through a realtor is the closing fees. Cash home buyers may still have to pay:
- Transfer taxes
- Initial deposit
- Escrow fees
- Closing costs
- Homeowner insurance
Benefits of Working With Cash Buyers
So, that’s how you can sell your home in Rhode Island for cash. But why should you consider it?
There are various benefits to choosing to sell a house for cash, including:
- Lack of realtor fee
- Quick and easy house selling process
- No hidden costs
- Selling process goes as fast/slow as you want it to
- Determine your leaving date
No Realtor Fee
One of the advantages of selling your home for cash is that you don’t have to work with a realtor.
Realtors can be helpful because they have the experience to promote your property effectively through social media. And they have access to multiple listing sites that you as a homeowner may not be able to access.
But, in return for helping you through a successful house sale, realtors receive a commission on the sale. If you’re selling your house fast for cash and as much money as possible, every penny matters. You may not be able to afford to part with a commission if you’re:
- In foreclosure
- Declaring bankruptcy
Since there are no realtor fees when you sell your home for cash, that means more money for you to put towards a new house.
Easy House Selling Process
Another advantage of cash home buyers is that their cash offer simplifies the selling process.
When you negotiate through a realtor and arrange a mortgage, there’s always a chance something will change in the home buyer’s finances. If it does, the house sale may fall through.
Because cash home buyers must show proof of funds, there’s no fall-through risk when you sell your home for cash in Rhode Island.
There’s also significantly less paperwork for you to deal with because a cash offer doesn’t require an:
- Mortgage application
Moreover, since you aren’t relying on a realtor, you don’t have to wait for a third party to take and post pictures of your property on social media and listing sites.
Keep in mind that while there’s less paperwork, that’s not the same thing as none at all. The home buyer will still need to sign a:
- Settlement statement
- Title deed
- Cashier’s cheque
However, since you aren’t dependent on a lender, there’s significantly less delay between when you close the sale on your home and when the money comes through.
No Hidden Costs
When you sell a house for cash, you avoid more than the realtor fees. You also save money on marketing, which can be expensive and take a significant amount of time to do well.
But the other advantage of cash home buyers is that they eliminate some of the hidden costs of selling your house. These typically take the shape of home improvements.
When you sell through the traditional market, sometimes selling a house as-is isn’t an option. That means spending money not only improving run-down parts of the house but ensuring your house and property are up to state regulations.
Selling your house to a cash home buyer allows you to sell the house as-is. That puts the need to restore or fix your Rhode Island home on the home buyer.
Selling a House at Your Own Speed
Another advantage of selling your home to a cash buyer is that you set the pace of the sale.
Traditional sales through the housing market can take time. This is because you need to rely on the realtor to:
- Photograph your home
- Engage with social media
- Upload property details to multiple listing sites
- Hold open houses
And even when you have done all of that, you still may not get the asking price of your home.
Not only that but selling your home through a realtor will likely involve lenders and a mortgage. Setting those things up can take time. If you’re selling your house to avoid foreclosure with the bank, you may not have that time.
Selling a house to a cash buyer allows you to determine how quickly or slowly you make the sale. This is ideal for homeowners who need to sell their houses quickly or avoid the delays caused by lender agreements.
Deciding Your Leaving Date
Finally, not only can you set the pace of the sale, but you can decide when you leave your home.
Selling a home for cash enables you to take control of the house sale process from start to finish. That includes the leaving date. This can be crucial if you need a grace period between the sale of your house and the purchase of a new one.
Determining your own leaving date also helps if the home you are moving to won’t be available until a particular date. Traditionally, this puts homeowners in limbo if they close on their own home but cannot yet move into their new property.
Selling your house for cash in Rhode Island removes that obstacle and simplifies your move by enabling you to close on your house and move into your new home when it’s convenient.
Things to Consider When Selling Your House for Cash
Selling your home quickly to a cash buyer can be an excellent way to avoid foreclosure. It can also help you recoup a large sum of money quickly. And while many cash offers are genuine, some opportunists will take advantage of your willingness to accept a cash offer.
If you’re selling your house for cash, watch for prospective buyers who:
- Are never available
- Are always out of the country
- Writes communications full of grammatical errors
Other signs include:
- Buyers who need you to pay them money
- Mirrored phone numbers
Always confirm the validity of a request for wired money payments, especially if they look unusual. Otherwise, you may find yourself needlessly paying with money you can’t recover.
It’s also worth considering that selling your home can be a daunting process. And learning to tell genuine from fraudulent home buyers can be challenging if you’re inexperienced. But some companies that buy houses in Rhode Island that can guide you through the process of selling your house for cash.
However, you choose to sell your house in Rhode Island, make sure you know what it’s worth before proceeding with the sale. This ensures you get a cash offer that does your property justice and gives you the money you need to move somewhere new.
Selling your house by yourself can seem daunting. But that doesn’t mean it isn’t possible.
And if you’re reluctant to put your house on the traditional housing market, remember it’s not the only option. Selling your house by yourself allows you to control the sale process from the transaction’s speed to the closure date.
Ensure you insist on proof of funds to weed out any fraudulent buyers and keep alert for cash offers from investors or buyers who are difficult to contact or whose correspondence is error-prone.
You’ll soon have a legitimate cash offer for your house without the hidden fees or realtor costs to subtract from it. Here’s to your new home – and best of luck.