Will I make money If I Sell My Home To A Cash House Buyer in Ontario?
Let’s just be honest. Get it out in the open as they say. There is a stigma in the air about selling your home to a cash house buyer that most homeowners experience. The stigma states that if you sell your home to a cash house buyer, you will not make any money. This idea or notion is false and, in the article below, we will show you how you can, in fact, make money when you sell your home to a cash house buyer.
What exactly is a Cash House Buyer and how do they help homeowners?
A professional and legitimate cash house buyer is someone who is licensed and eligible to offer you an all-cash offer for your home. Cash house buyers are not subject to lenders, banks, or loan officers. They use private capital to purchase your home for cash. It’s because of these things, that cash house buyers offer sellers the chance to close quickly on their homes and get money in their pocket much faster.
Each cash house buyer typically buys houses in specific areas. In this case we, Lewis Brothers Properties, serve the GTA. More specifically we buy houses in the Durham Region, York Region and Simcoe County.
Why consider selling your home to a Cash House Buyer?
When the time is right and you decide you need to sell your home FAST, there are a few things for you to consider. How fast do you want / need to sell your home? How much work are you willing to put into your home? How easy / stressful do you want the process to be? And, how much money are you willing to spend on your house before it sells?
These are all questions that homeowners who need to sell their homes quickly need to answer before making any decisions. Let’s dive into each of these questions and answer why selling your home to a cash house buyer might be a great option for you.
How fast do you want / need to sell your home?
Homeowners who find themselves in a situation where selling their homes fast can be very stressful. Timing has a big role here. If you need to sell your home quickly, a cash house buyer, like us, will always be your best option. Cash house buyers have the ability to close on houses quickly, typically in under 14 days. That means from first contact to close could literally be 2 weeks. Not 30-60 days like it is during the traditional route of selling your home.
How much work are you willing to put into your home before listing it on the MLS?
Before selling your home, most homeowners think that they need to start and complete major home renovations. If you are thinking of hiring a real estate agent and listing your home on a MLS, then yes, you will need to complete these renovations to get a top dollar offer. This effort requires two things, time and money out of your pocket. Home renovations costs are skyrocketing right now. Can you afford to put $25,000+ down in home renovations before selling your home? Cash house buyers buy homes AS-IS, which means in the home's current shape. Cracked tiles, leaky roofs, outdated countertops and even broken plumbing. The cash offer that you receive from a cash house buyer will always be for what your home is currently worth. (Hint: this is a reason you will make money selling your home to a cash house buyer. More on that later ;))
How easy / stressful do you want the selling process to be?
Another stigma that surrounds selling your home is that the process is long, tedious, inconvenient and stressful. When selling to a cash house buyer, NONE of those adjectives apply. If you want the process of selling your home to be quick, seamless and headache free, selling your home to a cash house buyer is the perfect solution. It typically only takes the cash house buyer one walkthrough to make an offer. That offer can come as fast as 24 hours later. Once the offer has been accepted, the closing date is determined by the SELLER, not the buyer. If you need to close in 5 days, we can make that happen. If you need it to take a little bit longer, that’s completely understandable. The process of selling your home to a cash house buyer is quick and stress-free.
How much money are you willing to spend on your house before it sells?
This question is the breaking point for most homeowners. In order to get top dollar offers for your home, you will need to complete, at a bare minimum, the essential home renovations. This is time and money you might not have to spare. The other major factor to consider is, how much money are you going to waste paying your mortgage, utility bills and upkeep on a home you no longer want? Can you afford to pay 2-3 more months of bills while waiting for your house to sell on the market?
Will you actually make money selling your home to a cash house buyer?
The answer is yes. Maybe not in the traditional way you might be thinking about, however, there are ways you will absolutely make money when you sell your home to a cash house buyer. Here are some ways a seller will make money on their home. For this example, let’s use a home that is currently worth $450,000.
Save 5-6% by NOT paying any commissions. When you sell to a cash house buyer, you will never be required to pay a dollar in commissions or fees. That means you will save $27,000 in commissions.
You will not need to complete any home renovations. Renovations and repairs on average cost $15,000-$25,000. Even on the low end, you will close to $15,000 by selling your home to a cash house buyer.
Save 1.5-4% in closing costs. There are no closing costs when you sell to a cash house buyer. Using our example, closing costs could be as high as $18,000. That’s money you save.
Home Equity. Let’s pretend you bought your house 20 years ago for $250,000. When a cash house buyer offers you $450,000, that offer is based on the home’s current condition and the market. So, in fact you will make $200,000 selling your home to a cash house buyer.
Could you get more for your home if you hired a realtor / real estate agent and listed it on the market? Possibly. But it is not a guarantee. Again, you will be required to put money into your home before listing it and you will lose out on a lot of money paying commissions, fees and closing costs.
To wrap things up
So, are you still wondering if you will make money selling your home to a cash house buyer? The answer is…. Yes you will. Maybe not in the traditional way of thinking, but you will make money when you sell to a cash house buyer. Plus, the process is much smoother and will ultimately get money into your hands quicker.
If you live in the Durham Region, York Region or Simcoe county and you need to sell your home fast, we’d love to hear from you. Click here to get your FREE no obligation quote. If you’d rather talk to someone in our office, give us a call at 905-260-9779.
