Selling a house for cash is becoming a popular alternative for homeowners who need to sell their property quickly. With the current credit clog and sluggish real estate market, many sellers are finding it difficult to locate qualified buyers. Instead, they are turning to investors who are able and willing to ante up cash.
Selling a house for cash is no different than selling to a buyer who obtains traditional financing. However, there are benefits with cash transactions that cannot be obtained when the buyer requires funding through a bank. To know more click here sell fast
The primary benefit of selling your home for cash is the deal can be closed in a matter of days instead of weeks. There are no long forms to fill out with the lender and no waiting for approval. Currently, banks are placing tighter restrictions on borrowers. There are no more “no-money-down, get-in-over-your-head” mortgages. In order for buyers to obtain mortgage approval today, they must have a decent FICO score and able to provide a down payment of at least 20-percent.
It’s no secret the economy is in the dumps. With the ever-growing unemployment rates, people are afraid to buy real estate for fear they will lose their job and then their home. They aren’t willing to take that much of a risk. Nearly every homeowner is feeling the pain from lack of qualified buyers.
On the other hand, real estate investors are buying houses all across the nation. Many of them are purchasing properties with cash simply because traditional lending sources have dried up. Although the media likes to project financial gloom and doom, there is still an abundance of private money available. Established investors are able to tap into that money to expand real estate portfolios for their self and clients.
When selling real estate to a private investor, the seller benefits from their expertise. Many investors are skilled in foreclosure and short sale transactions. Both require extensive knowledge and developed relationships with various lenders.
Short sales are particularly tricky and require specific documentation. Homeowners who have obtained short sale approval aren’t able to profit from the sale of their home. Instead, they must locate a buyer in exchange for the lender accepting less than is owed on the loan. Working with a short sale specialist can increase a successful outcome ten-fold.