When people consider selling their home to a cash buyer, a frequently asked question is: What kind of costs will I pay? To understand this question, it’s necessary to look at the expenses traditionally associated with a traditional home sale. Short answer: you won’t pay any of these costs.
No Initial Costs or Fees
In a traditional sale, you must contact a sales agent and sign a contract for that person to represent you and market your home. Some companies will charge an initial fee for listing or marketing.
Then, you’ll be expected to fix up your home to make it presentable for photographs and showings. This can involve simple cosmetic upgrades like paint or carpet cleaning. Or, if more serious repairs are needed, it can cost you thousands of dollars.
No Concessions for Repairs
Even if you skip the cash outlay for repairs and upgrades, it could end up costing you. A house sold “as is” may take longer to sell. And, the offer you receive may be lower than you hoped for because the buyers will figure in the costs of making the repairs themselves.
Worst case scenario happens if serious defects are discovered during the home inspection. The buyers may demand you deduct the cost of repairs from the agreed-upon sales price. When selling to a cash buying company, no repairs are required, and the price you are offered will remain the same no matter what.
In a traditional sale, the biggest expense to the seller is the commission paid to the sales agent. The rate varies, depending on the area, but generally runs between 5 and 6% of the sales price.
Since there are no sales agents involved with a cash sale, there are no commissions to pay. A cash sale is a direct transaction between the seller (you) and the buyer (the cash buyer or cash buying company).
Selling your home for cash is quite different from selling it on the open market, and one of the biggest differences is what you have to pay. Essentially, with a cash sale, you pay nothing. When figuring the costs into the whole picture, you could easily save money on a cash sale.
Want to know more about how a cash sale differs from the traditional home sale in Utah? Click here to compare costs.