You might find this surprising, but according to BusinessWire.com, buyers paid for almost one in three home purchases in the U.S. with cash in 2024!
So, if you’ve been wondering, “Can and should I sell my house for cash today?” You certainly can, but you should weigh the pros and cons before selling your home through this route. It pays to carefully assess your options, considering that a home sale is one of the most significant financial transactions you’ll likely ever make.
So, without further ado, the We Buy Houses Memphis team will share quick home sale tips and discuss the pros and cons of selling your home for cash today to help you decide if it’s the correct route.
PRO: No Underwriting Necessary
In mortgage lending, underwriting is when lenders assess the risks they’ll take if they lend money to home loan borrowers. It’s a lengthy procedure involving:
- Risk Assessment: Determining a borrower’s likelihood of defaulting on their mortgage loan
- Financial Evaluation: Examining a borrower’s financial information, such as assets, income, credit history, and debts, to gauge their ability to repay the home loan
- Document Verification: Verifying the validity and accuracy of the borrower’s application and financial documents
- Loan Approval: Making recommendations to lenders on whether to approve mortgages based on the above steps
If you were to sell your home to a typical buyer who needs to finance its purchase, you must wait on the lender-underwriting process’s rigmarole. In this case, you can only hope for the best (i.e., for your buyer to get approved for the loan).
Unfortunately, lenders don’t approve all mortgage applications. Indeed, according to the Federal Reserve Bank of New York’s Center for Microeconomic Data, the average mortgage application rejection rate rose to 20.7% in 2024. It’s incredibly high, given that it’s over twice the rate in 2019, which was only 10.2%.
You can significantly minimize your risk of dealing with such issues if you work with cash home buyers. They will make an immediate house offer since they are ready buyers who don’t need to rely on a mortgage loan.
CON: Potentially Lower Profit
If your priority is to sell a house fast with little to no effort, a cash sale is one of, if not the best way to go. Such transactions are more straightforward because, once again, they don’t involve waiting for the underwriting process.
However, due to their speedy completion and convenience, cash-based home sales may yield lower profits for sellers. So, prepare yourself: You may make slightly less if you sell your Memphis house to a cash buyer today.
PRO: Fewer Worries About Repair Costs
Before you get put off by the thought of making a slightly lower profit when you sell your home for cash, here’s something to consider. When you partner with a cash buyer, you can sell your Memphis home as-is. With an as-is sale, you don’t need to worry about:
- Repairs
- Updates
- Upgrades
So, you can still get a fair cash offer no matter how rough or rundown your home is. Consider this an excellent proposition, especially if you don’t have the funds to fix it or invest in upgrades and updates.
If you’re wondering how much such projects would cost you, the simple answer is thousands of dollars. Indeed, according to a Yahoo article, over half of U.S. homeowners plan to spend at least $5,000 on home renovations this 2025. Four in ten even said their plans involve shelling out at least $10K!
Granted, repairing your house, especially material defects, is one of the most crucial home selling advice to help you get your property off the market faster. However, it will extend your house’s time within the selling phase. The more repairs or upgrades you plan to do, the longer it will take for contractors to finish the projects, and the longer your home will stay under your name, unsold.
CON: Negotiations Can Be Challenging
If you decide to sell your house for cash today, you’ll get requests to schedule “viewings” or walkthroughs at your convenience. During these viewings, the cash buyers will assess the following:
- Your property and its condition
- The neighborhood
- The current market trends in your specific area
After carefully reviewing everything, cash buyers will make an offer on your house, usually within 24 hours from the viewing or walkthrough. In many cases, these are “take-it-or-leave-it” offers, which means they are typically not open for negotiations. For this reason, you may be unable to ask for a higher price, except if you have a strong reason to believe that your property is worth much more than the cash offer.
Although negotiations can be more challenging in cash-based home sales, don’t feel pressured to accept your first offer. Reputable cash buyers make offers that are free and non-obligatory. So, they won’t force you to accept or make you obligated to sell your home to them if you don’t agree to their instant cash offer.
PRO: Reduced Risk of the Sale Falling Through
There are many reasons for a home sale to fall through, usually because of one or more of the following:
- Financing issues
- Inspection problems
- Appraisal challenges
Financing issues are among the most frequent reasons home sales fall through, and they can occur at any point throughout the sales process. For example, even if a home buyer initially got a pre-approval, their actual application can still get rejected due to a change in their financial situation, such as losing their job or getting demoted.
Changes in anticipated mortgage rates can also make buyers back out of the sale. They may do so if the final rate they get is much higher than they initially expected, making their loan too expensive or unaffordable.
Problems related to home inspections, such as the discovery of major issues (e.g., a failing roof or significant mold damage), can also delay the deal. In such scenarios, potential buyers may even back out of the agreement.
Such risks and issues are less common in cash-based home-buying transactions because buyers have the funds to purchase the home upfront.
CON: You Need to Be Extra Wary of Potential Scams
Most home cash buyers are legitimate, but this doesn’t mean all entities you encounter are genuine and trustworthy. We hope you never experience it, but it is still possible to come face to face with one or more scam artists looking to cash in on individuals wishing to make a quick cash sale.
Since the possibility of encountering scammers exists, knowing how to spot and avoid them is crucial. Here are some tips to help you stay safe as you find a legit cash buyer for your Memphis home.
Research Online Reputation
Always check a cash home buyer’s online reviews and credentials, such as through the Better Business Bureau (BBB). BBB accreditation is a solid indication of a company’s trustworthiness and legitimacy. As Fit Small Business points out, research has shown that eight in ten consumers would trust a BBB-accredited business, even over those with A+ ratings but have no BBB accreditation.
It’s also wise to look at other review sites for ratings and stories of customers, such as:
- Yelp
Don’t just focus on the number of stars, though. Be sure to read the reviews, as they can tell you exactly what the stars are for and whether the reviewer recommends the company.
Look for a Professional Website and Contact Details
A legitimate cash home-buying company will have a professional website with complete contact details, including:
- Full name of contact person
- Phone number
- Email address
- Physical address
Do yourself a favor and also run the physical address on Google Maps. It should show a building where the buyer’s office is, not just vacant land.
Check Their Process and Transparency
Choose a home-buying company that provides transparent information on their process, including:
- How they will value your home, such as through a walkthrough or inspection
- When they’ll do the valuation, which should be at your convenience
- How long it’ll take for you to get your fair cash offer, which should be no longer than 24 hours in most cases
Also, please don’t forget to ask about other costs, such as if they charge a cut or commission. We’ll never charge you such fees at We Buy Houses Memphis, as we’re direct buyers, not real estate agents.
PRO: Close Much Faster
Last but not least, selling your home to a cash buyer means completing the entire process within just a few days, as opposed to the typical route, which can take weeks or even months. The timeline is much shorter since no lending institutions or underwriters participate in the transaction. Instead, the buyers work directly with the sellers, and vice versa.
So, Should I Sell My House for Cash Today?
The answer to the question, “Should I sell my house for cash today?” is ultimately up to you. However, knowing that reputable cash home buyers like We Buy Houses Memphis are happy to help should give you peace of mind and assurance.
If you’re considering selling your home for cash today, our A+rated and BBB-accredited company is glad to be of service. We’re also proud to have many stellar, four- and five-star reviews on Google, Yelp, and Facebook.
Call us today to request your non-obligatory cash offer!
