Will you be listing my house on the MLS or actually buying it?

Great question. We’re not agents, and we don’t list houses. We are professional home buyers: We buy houses Calgary that meet our purchasing criteria. From there we may repair the house and resell it to another homeowner or keep it as a rental ourselves.

Do you pay fair prices for properties?

Many of the houses we purchase are below market value (we do this so we can resell it at a profit to another homeowner). We are looking to get a fair discount on a property. However, in our experience, many sellers aren’t necessarily expecting a large “windfall” on the property but rather appreciate that we can offer cash, we close very quickly (no waiting for financing), and no time or effort or expense is required on your part of fix up the property or pay agent fees. If that’s what you’re looking for and you see the value in getting your house sold fast… let’s see if we can come to a fair win-win price. (Besides, our no-obligation pricing commitment means that you do not have to move forward with the offer we give… but it’s good to know what we’re offering!)

How do you determine the price to offer on my house?

Great question, and we’re an open book: Our process is very straightforward. We look at the location of the property, what repairs are needed, the current condition of the property, and values of comparable houses sold in the area recently. As you know, house values have taken a huge hit in the last 5 years and most areas still haven’t seen prices come back up. We take many pieces of information into consideration… and come up with a fair price that works for us and works for you too.

Are there any fees or commissions to work with you?

This is what makes us stand out from the traditional method of selling your house: There are NO fees or commissions when you sell your house to us. We’ll make you an offer, and if it’s a fit then we’ll buy your house (and we’ll often pay for the closing costs too!). No hassle. No fees. We make our money after we pay for repairs on the house (if any) and sell it for a profit (we’re taking the risks here on whether we can sell it for a profit or not, once we buy the house from you… the responsibility is ours and you walk away without the burden of the property and its payments… and often with cash in your hand).

How are you different from a real estate agent?

Real estate agents list properties and hope that someone will buy them. The agent shows the properties to prospective buyers if there are any (the average time to sell a property in many markets right now is 6-12 months) and then take a percentage of the sale price if they find a buyer. Oftentimes, the agent’s commission is 3-6% of the sale price of your house (so if it’s a $100,000 house, you’ll pay between $3,000 – $6,000 in commissions to an agent). Agents provide a great service for those that can wait 6-12 months to sell and who don’t mind giving up some of that sale price to pay for the commissions. But that’s where we’re different: We’re not agents, we’re home buyers. Our company actually buys houses. We don’t list houses. Since we’re actually the one buying the house from you, and we pay with all cash… we can make a decision to buy your house within a couple of days (sometimes the same day). Again, we make our living by taking the risk to buy the house with our own cash, repair the house, and market it ourselves to find a buyer (which is the hard part in this market).

Is there any obligation when I submit my info?

There is absolutely zero obligation for you. Once you tell us a bit about your property, we’ll take a look at things, maybe set up a call with you to find out a bit more, and make you an all-cash offer that’s fair for you and fair for us. From there, it’s 100% your decision on whether or not you’d like to sell your house to us… and we won’t hassle you, won’t harass you… it’s 100% your decision and we’ll let you decide what’s right for you.

Should I Accept A Cash Offer For My House?

Selling a home is a complex process that requires a lot of effort and attention to detail. Homeowners need to put time and energy into cleaning and repairing their homes, finding a reputable and experienced real estate agent, and then negotiating the sale price and terms with potential buyers. These negotiations can often be time-consuming and stressful, with numerous factors such as financing, inspections, and closing costs that need to be taken into account.

However, sometimes a buyer may come forward with a cash offer on a home. A cash offer means that the buyer is offering to pay for the home in full, without the need for a mortgage or any other financing. This type of offer can have several advantages compared to a traditional sale. Most people think, “should I accept a cash offer for my house?”. There is no straightforward answer to the question. Let’s have a detailed discussion to determine what is best for you if you want to sell your house.

What is an all-cash offer?

An all-cash offer is a straightforward offer made by a homebuyer who has enough money to purchase the property in full, without the need for a mortgage or other financing. The key benefit of a cash offer is that it is usually quicker and more straightforward than a traditional offer that requires financing.

Cash offers are attractive to sellers because they tend to close faster, without the need for contingencies like appraisals or financing, and without the complications of underwriting. In other words, cash offers can provide a simpler, faster, and more reliable sale process for homeowners.

Is it common for residents to receive an all-cash offer when selling their homes?

The trend of all-cash offers in the residential real estate market has been on the rise in recent years. According to the research, the number of all-cash purchases increased by 42% from 2019 to 2022. This trend is largely driven by real estate investors, including small-scale business owners and large company conglomerates, who are becoming a more significant presence in the market.

The majority of all-cash offers come from real estate investors, who can be small business owners or large company conglomerates. The increase in all-cash offers can be attributed to the growing presence of investors and second-time homebuyers in the market, as the share of first-time homebuyers has declined by 18% from 2020 to 2022.

What is the main difference between a mortgage and a cash offer?

The home buying process is different when a buyer is making an all-cash offer versus a mortgage offer. The main differentiation is the source of funding for the purchase. An all-cash offer means the buyer has the necessary funds readily available to cover the entire cost of the home, while a mortgage offer requires the buyer to obtain a loan from a lender.

Transaction Timing

The length of the home selling process can vary, but the source of financing plays a significant role in determining the duration. Mortgage transactions can take anywhere from 2 to 3 months, whereas all-cash transactions can be completed much faster, usually within 5 to 7 days.

Transaction Steps

The home-selling process involves multiple steps. Mortgage transactions require additional steps to obtain the funds from the lender, including a buyer application and underwriting, lender-initiated appraisal, and the addition of contingencies such as due diligence, appraisal, and financing. Conversely, cash transactions have fewer steps and no mortgage application or underwriting is required. Some cash buyers may still request a time for due diligence and inspection, but not necessarily an appraisal.

Who makes cash offers for selling a house?

Cash offers for selling homes are becoming increasingly common in the residential real estate market. There are several groups of individuals and entities that are known to make all-cash offers, including real estate investors, second-home buyers, and wealthy individuals.

Real Estate Investors

Real estate investors are individuals or companies that invest in real estate properties with the intention of generating a return on investment. They purchase homes, make repairs and renovations, and then either sell the property at a profit or rent it out for income. Because they have access to capital and the ability to make quick decisions, real estate investors are often able to make all-cash offers for homes.

Second-Home Buyers

Second-home buyers are individuals who are looking to purchase a second property as a vacation home, rental property, or as investment. They often have significant financial resources, and like real estate investors, they are often able to make all-cash offers.

Wealthy Individuals

Another group of people who may make cash offers for homes are wealthy individuals who have significant financial resources. They may have invested in stocks, bonds, or other financial instruments, and they may choose to use some of their liquid assets to purchase a home. These individuals are often looking for a convenient and quick way to purchase a home, and a cash offer allows them to do so without the need for financing.

Advantages of Selling Houses For Cash

Rapid Closing

The closing process for a cash offer can be completed faster, as there is no need for mortgage underwriting, which can take several weeks.

Reduced Risk

As a seller, multiple offers may come your way. However, offers that are contingent on financing may not be realized, leaving you with a lingering property and incurring additional costs. Cash offers, however, offer guaranteed funds on the spot, although the amount may be lower, but it comes with the advantage of minimal complications and a faster closing process.

No Appraisal Requirement

Home sales that require mortgage financing come with an appraisal process that determines the property’s value. However, a cash sale eliminates this requirement, as there is no mortgage lender involved.

“As Is” Sale

A home inspection can result in costly repairs being necessary. Cash sales, on the other hand, are usually considered “as is,” meaning the buyer agrees to purchase the property without any additional repairs or modifications. This allows you to avoid cleaning and staging costs and to complete the sale quickly.

An Efficient Solution to Complicated Situations

There could be several reasons why you would like to sell your home as quickly as possible, such as divorce, foreclosure, or a work-related relocation. Whatever the reason may be, a cash offer provides a straightforward solution to these challenging situations.

Streamlined Negotiating and Paperwork

The buying process typically includes negotiating repairs, closing costs, and other details with the seller via the real estate agent. A cash offer eliminates these steps, allowing for a smoother and quicker transaction, with reduced closing costs. Simply accept the cash transfer and be done with the sale.

Disadvantages of Selling Houses For Cash

A cash offer may be lower than a traditional offer due to the lack of mortgage financing and the convenience factor for the buyer. By accepting a cash offer, you limit the potential pool of buyers, as not everyone has the means to buy a home outright.

Cash buyers typically have fewer contingencies, such as home inspections, which can protect the seller from unexpected issues. Without an appraisal, there is no official determination of the property’s value, potentially leaving the seller at a disadvantage in negotiations.

A traditional home sale typically includes an escrow period, which gives the buyer time to review the property and complete any necessary inspections or repairs. With a cash sale, there is no escrow period. A mortgage financing offer provides leverage for the seller in negotiations, as the lender’s approval is required before the sale can be finalized. Without a mortgage, the buyer has no lender to answer to, leaving the seller with less bargaining power.

As with any large financial transaction, there is a potential for scams in cash home sales. It is important to thoroughly vet potential buyers and work with a reputable real estate agent to ensure a safe and secure transaction.

Should I Accept A Cash Offer For My House?

The decision to sell your house for cash depends on several factors and ultimately depends on your individual circumstances and goals.

One of the benefits of accepting a cash offer is a quicker closing process compared to traditional home sales that often require a mortgage lender and the associated underwriting process. Additionally, cash offers remove the requirement for an appraisal, which can be a significant setback in the traditional sales process. However, a cash offer may be lower than other offers and may not take into account the full market value of the property.

Another factor to consider is the “as is” nature of cash sales, which means the buyer agrees to purchase the property without any required repairs or changes. While this can save you time and money, it can also mean that you may miss out on potential profits that could have been made through upgrades or repairs.

Final Words

It is also important to evaluate why you are considering a cash sale. If you need to sell quickly for financial reasons or to resolve a messy situation, a cash offer may be the best option for you. On the other hand, if you have the time and resources to wait for a traditional sale and want to maximize your profits, a cash offer may not be the best choice. Ultimately, it is crucial to carefully weigh the pros and cons of a cash sale, and seek professional advice if necessary, before making a decision. Hope you have got the answer to the question “should I accept a cash offer to sell my house”