Do Sellers Have to Pay Closing Costs When Selling to A Cash House Buyer?
Picture this! You need to sell your home and you want to sell it fast. What are your options? You can hire a real estate agent and list it on the market. You can list your home as “for sale by owner.” Or, you can sell it to a cash house buyer. Remember, in this scenario, you need to sell your home quickly. The fastest option is to sell your home to the cash house buyer. One of the next big questions quickly becomes, “Do sellers have to pay closing costs when selling to a cash house buyer?” In this article, we answer this looming question and dive into the very little amount, if any, of money it takes sellers to sell their homes to cash house buyers.
After you have reached out to a local cash house buyer, you are likely to receive an all-cash offer for your home. It’s thrilling when that offer comes in for two main reasons. First, it means you do not have to sit around and hope that you get an offer for your home, especially in its current condition. And second, you do not have to worry about the buyer getting approved for a home equity line of credit or a traditional home loan. A legitimate cash house buyer is able to provide proof of funds right off the bat.
In a dream world scenario, the buyer would hand over a check in the agreed upon amount, the seller would hand over the keys and code to the garage door (if they have one) and everybody would go their separate ways. In a real world scenario, before the seller is able to take the check from the buyer and deposit it into their bank account, there are some, not many, financial obligations to complete.
What closing costs are paid by the sellers when selling to a cash house buyer?
The answer to this question is no. Sellers are not charged the traditional closing costs when selling to a cash house buyer. During the sale of a home, there are always going to be items that sellers think they’ll have to pay for. For example, when selling a home using a real estate agent or “for sale by owner,” the seller can expect to pay for the following:
A home appraisal
A home inspection
Hiring a professional photographer to present the house
A professional cleaning service
Real Estate Agent commissions (~5% of total sale price of the home plus HST, which is money out of the sellers pocket)
Legal fees
High fees from real estate agent, lenders or banks
When you sell your home to a cash house buyer, many of the traditional closing costs go out the metaphorical window. A professional, legitimate, cash house buyer will never charge you a penny in commissions or fees. If you need to get out from underneath the financial burden your home is causing you, selling to a cash house buyer will help you save money on the sale of your home. Here are some of the cost saving benefits you can expect when you sell your home to a cash house buyer:
No home appraisals
No contingencies or possible delays on closing
As-is – no repairs needed to complete
No commission to realtors
No closing costs which means more money in your pocket
No stranger walkthroughs
No home inspections
No banks or lenders, (we pay cash for your house)
Faster and stress-free process
Buyer doesn’t need a mortgage loan
Buyer takes care of legal documents and filings
As you can see, if you sell your home using the traditional strategy, you can expect a lot of money coming out of your pocket upfront and after closing.
Why do homeowners typically use cash house buyers?
Of course there are advantages to using real estate agents and we’ll be the first people to tell you to consider this method. However, there are typically three reasons why homeowners look to cash home buyers instead of using real estate agents. Those reasons include:
Sell your home quickly (under 30 days)
Avoid spending thousands of dollars on needed home repairs or renovations
Stop spending money on a home that has become a financial burden
If you currently fall into one of these categories, it might be advantageous to reach out to a local cash house buyer and get the process started. Cash house buyers, like us, can close quickly and on your timeline. We’ve even closed on houses in under five days.
At the end of the day, homeowners who use cash house buyers will never need to pay the kinds of closing costs that are associated in the traditional sale of their home. The offer homeowners receive from cash house buyers might not be as high compared to listing it on the market, but, the savings of time and money might be worth it.
In Conclusion
As you’ve read, there are no closing costs that sellers will need to pay when selling their home to a cash house buyer. There are some financial requirements that cash house buyers will need but paying closing costs is not one of them. We’ll be the first company to tell you that selling to a cash house buyer is not for everyone. If you need to quickly sell your home, or your home needs major repairs or you’re trying to get out of a tough financial situation, then selling to a cash house buyer is the best solution. Don’t lose money by paying high commissions or fees. Save money by not paying for needed repairs, staging or realtor fees and sell your as-is and jump feet first into the next phase of life.
If you’re ready to start the process or even explore this option in greater detail, give us a call today at 905-260-9779. If you’d prefer to fill out some basic info and be reached via email to receive your no obligation quote, get started here.
