House for Sale Cash Only Offers: Everything You Need to Know

Before selling your house, you might spend time researching the real estate market. You look at current home prices. You might also look at how many houses are for sale.

As you look at the market, you might be surprised to see many listings that advertise a house for sale cash only. 

What exactly does this mean? Is selling your Memphis home for cash a good idea?

Continue reading this guide as we discuss the ins and outs of selling a house for cash.

Basics of a Cash Sale

People can buy houses in two ways. The first is with a mortgage loan. To do this, a person must apply for a loan and wait for the lender to get back to them.

If the lender approves it, the buyer and lender work together. Each party must do their part to get the loan closed. Once this happens, the buyer can pay you for the house.

The other option is a cash sale. A person with enough cash on hand can avoid getting a loan. Instead, they’ll pay you outright for the house.

This process eliminates the need to involve a third party in the deal. As a result, both parties benefit. 

Prevalence of Cash Sales

Only some people build custom homes with cash. This just is not the normal way people construct new homes.

However, a decent percentage of existing home sales occur from cash buyers. The most recent estimates show that 28% of existing home sales in December 2022 were cash sales. 

As you can see, all cash offers make up nearly one-third of existing home sales. But who are the people buying homes for cash? They include two primary groups of people:

Individuals and Families

The first group is people, such as individuals and families. These people buy homes for cash to live in. They often use them as their primary residences, but others might use them as vacation properties. 

Many people do not pay cash for their first homes. Instead, they may buy and sell several houses throughout their lives. After doing this several times, they may finally have enough money to pay cash for a house.

Other people may live in the same house all their lives. When they retire, they may decide to downsize. Therefore, they sell their homes and pay cash for their retirement homes. 

Real Estate Investors 

The other group of people are cash buyers. These are real estate investors who purchase properties to make money.

Some may buy houses to flip. They may look for fixer-uppers to purchase. They buy them, invest money, and sell them for a profit.

Other cash buyers purchase real estate for rental purposes. These individuals buy properties and fix them up. Then, they rent them to people who need rental properties.

Real estate investors often have private investors who fund their businesses. These investors assist with financing, allowing them to pay cash for houses. 

Benefits of Selling a House for Cash

To understand the benefits of selling a house for cash, you’ll need to understand the differences in home sales. Here is a list of some of the benefits of selling for cash compared to selling to a buyer with a loan. 

No Home Staging

Home staging is the process homeowners use prior to selling their homes. It involves preparing a home for sale. You can use a home staging checklist to prepare your home or devise your own plan.

If your house needs significant work, you can spend thousands of dollars on this step. You might not have to spend this much if your home is in excellent condition.

Home staging also takes time, which means it delays your house sale.

The good news about selling your home to a cash buyer is you do not have to stage it. You can skip this step completely.

This is because cash home buyers do not look at the details like traditional buyers do. When they make an offer, it will be for your house as-is.

They will not add any contingencies either, which means you save money. Contingencies are requests buyers make to sellers. They require sellers to do things, such as repairs or updates.

No Appraisals or Inspections

Selling in a traditional manner requires a number of inspections and services. One service is a home appraisal. A home appraisal reveals the home’s true value, which is essential for buyers, lenders, and sellers. 

Additionally, buyers often ask for inspections. They do this to determine the condition of various parts of the home.

For example, you can get a certified home inspection to determine the overall condition. However, this can be a costly service.

Buyers may also hire inspectors for home inspections. They may also want roof, sewer, and plumbing inspections. 

When you list your home for a cash sale, you can skip every inspection. You can also skip the appraisal if you wish. 

Cash buyers treat home sales differently. They do not expect to know the condition of every part. They also do not expect to buy homes in perfect condition.

Instead, they often look for properties that need work. This results in less stress. It also helps you save time and money. 

No Costs

Low costs are among the best parts of selling a house for cash. In reality, there are no costs when selling for cash. 

A cash buyer makes an offer, and you receive the entire amount. The only thing you’ll pay for is your mortgage.

When you sell a house with a mortgage, the lender has a lien on the property. You must pay this lien when selling a house because a lien connects to the property.

You must pay other liens, too. For example, you must pay a second loan if one exists. You must also pay for contractor liens if there are any on the property. 

A cash sale also helps you save money on other closing costs. For example, you will not have to pay a real estate agent commission if you locate a cash buyer yourself. Most agents charge 5% to 6% commission. 

Without paying this amount, you’ll save a lot of money. You also will not have to pay for repairs, updates, or modernizations. There are no other costs when selling a house for cash. 

No Waiting

The closing process with traditional sales takes time. In fact, you might not close the deal for at least four weeks from the date you accept the offer.

This occurs because buyers using loans must abide by their lender’s requirements. They must get inspections and work on title work. Each of these steps takes time. 

Cash sales do not require waiting. Instead, they close quickly.

Additionally, you eliminate the time you spend looking for a buyer. You will not have to do this if you contact a cash buyer. Therefore, you can save a lot of time through this method. 

It’s Fast, Easy, and Hassle-Free

When you add all these benefits together, you get a fast and easy sale. It’s also a hassle-free sale.

You can use this method when you need to sell a house quickly. In fact, many people sell for cash during a divorce or after inheriting a home. 

You can also use this method simply to have a fast and easy way to sell your home. 

People often choose this option when they need a guaranteed method for selling. There are no risks the deal with fall through, primarily because there is no lender involved.

What to Expect When Listing a House for Sale Cash Only

You can find a cash buyer in two ways. The first method is by listing your home through a realtor. 

The realtor creates a listing and advertises a cash-only sale. Adding this phrase to the listing alerts buyers that you’ll only sell it for cash. Unfortunately, you will pay a commission if you hire a realtor. 

You’ll have to wait for a cash buyer to make an offer. This may take some time, so it is not the fastest option. 

The other option is to call a cash buyer in Memphis. When you call, they’ll ask some questions about the property. After gathering the information they need, they’ll present you with an offer.

You will have time to think about the offer before responding. If you accept, the buyer begins working on the transaction. You’ll likely close the deal within just a few weeks. 

Learn More About Cash Home Sales 

You can sell your house through any method you choose. Of course, factoring in the benefits, process, and steps is always helpful before selecting your method.

If you decide you want a fast home sale that does not cost any money, then turn to a cash home buyer. Choosing a house for sale cash only option is simple and fast!

We Buy Houses Memphis will buy your house. We buy homes in all conditions, neighborhoods, and price ranges. We provide fair offers, fast closings, and no hidden fees. 

Reach out today for a free cash offer on your home.