A cash home buyer is someone who wishes to purchase a property outright without using any other type of finance, such as a mortgage loan. This is preferred by the seller since it is a simple process, the deal closes more quickly, and there is a lesser risk of the financing falling through. Buyers receive a discount and the assurance of a close deal. Here’s a look at different types of cash buyers, top companies, and their benefits.
There are two types of cash buyer companies
Buy homes for cash companies often only buy houses in bad shape and purchase homes at a huge discount from their market worth. They buy homes as-is for cash and then resell or redevelop them. Some of the cash-buying businesses are:
- HomeVestors
HomeVestors is a well-known national brand that buys houses, apartments, and multi-tenant structures for cash. They can make an initial offer in 48 hours and close in three weeks. House sellers may get up to 55% of their home’s after-repair value, minus any repair costs. - We Buy Houses
This company operates over 200 independent real estate investing offices in over 30 states. It takes 28–48 hours to offer and a minimum of 7–14 days to close. A representative will visit your house once you register to evaluate it and make you a cash offer. - I Buy Houses
This business provides lead generation for real estate investors. Your information is shared with a local investor, who contacts you directly to close the deal after receiving it. - MarketPro Homebuyers
MarketPro is a regional firm that buys homes in Pennsylvania, Maryland, northern Virginia, and Washington, D.C. The firm makes an initial offer within 24 hours and offers free shipping. It takes about seven days to complete the deal.
iBuyers are cash-buying companies that only operate in a few major metro areas and have very tight purchasing requirements. They make competitive offers that are closer to your home’s value in an open market. Some of the best iBuyers are:
Offerpad
Offerpad guarantees a cash offer and a quick closing on the day you specify. Its services include an offer within 24 hours and up to 90 days to move out. It also gives you a free move within 50 miles of your previous residence. It charges a 5% service fee.
Opendoor
Opendoor is a fast and smooth buying service that aims to purchase houses from $100,000 to $600,000. The company operates largely in big metro areas and charges a service fee of 5%, and specifies a closing date ranging from 14 to 60 days.
RedfinNow
RedfinNow is a well-known corporate brand that accepts older properties. It is widely available in California, making it a popular option. The brand charges a service fee of 5–13% and has a 10 to a 30-day closing window.
Knock
Knock enables a client to buy a new house or swap, i.e., buy a new property and sell the old one in that order. It covers your expenses for existing home repairs and helps you get the best price. It charges a 1.25% service fee and offers a $25,000 advance for home repairs.
Advantages of cash home buyers
Cash buyer discount
Real estate agents and sellers are drawn to buyers who don’t require a loan or mortgage as the transaction procedure becomes quicker and less complicated. As a result, the buyer benefits from a significant discount on the deal.
Quicker sales
As mortgages are no longer required, cash buyers benefit from faster and more flexible property transactions. Mortgage offers might last up to six months and require around a month to secure, whereas cash buyers can move into their new home within a few weeks.
Chain free transaction
Buying and selling a property involves many intermediaries, which can sometimes lead to confusion. Such complicated situations can be highly stressful and time-consuming. The absence of a chain reduces the possibility of the sale falling through due to a third party, making the process easier.
Certainty
Cash buyers do not rely on financial support from a third party. Many home deals fail because mortgage lenders back out at the last minute. A cash buyer ensures that the purchase is financially secure, which is reassuring for sellers.
