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Have you considered selling your house for cash? If so, you’re not alone. Homeowners in South Carolina are increasingly turning to fast-cash companies that provide cash offers for homes and offer advanced technology to make the process easier. For example:
- You don't have to wait months to list and close on your house.
- There's no need to pay a real estate agent or closing costs.
- You can avoid any repairs that might be needed before the sale is finalized.
- The company will send a team of professionals who will handle everything from marketing, staging, photographing, and negotiating with potential buyers. All this makes it easy for homeowners in South Carolina looking for fast cash sales on their homes.
What exactly does it mean to sell your house for cash in South Carolina?
If you’re considering selling your home for cash in South Carolina, there are a few things to know.
There are a lot of advantages to selling your home for cash, and one of the most popular reasons people want to get out from under their mortgage is that they don't want to owe more than it's worth. If you don't have a large monthly mortgage bill, moving into an apartment or a smaller house may be simpler. On the surface, selling your house for cash sounds very easy.
But the devil is in the details. What does it mean to sell your home for cash? How does it work?
When you sell your home for cash, the buyer is typically going to purchase the house "as is". This means that they will buy it from you with no contingencies and no financing in place and without you needing to make repairs. In other words, they are paying you in full, right then and there no matter the condition of the home.
Translating that to real estate terms, selling a house for cash goes something like this:
- Request an offer: To learn more, the first step is to speak with a local home buying company and request an offer. You can give them as much or as little information as you’re comfortable providing and let them know what condition your house is in.
- House Evaluated: The buyer will obtain information about the house, possibly dispatch a representative to conduct an on-site investigation, and negotiate a price.
- Review the contract: If an offer is accepted, you as the seller then review the proposal, including the contract price and conditions, and make a decision whether to accept.
- Ask for proof of funds: Always request documentation that a person or business claiming to be who they say they are and actually has the assets and capabilities to complete such a transaction.
- Complete inspections: Steps like inspection and appraisal may still be taken by the cash buyer if the deal moves forward — it all depends on who you deal with and how they operate. Even if you're selling "as is," an inspection might be required.
- Fast-forward to closing: There will be no lender-ordered appraisal or loan processing period without a lender's involvement. As of June 2021 the average home closing where the buyer used a mortgage took 51 days, according to a report from Ice Mortgage Technologies.
- Clear title: A title search will be required to ensure that you can transfer the property free and clear of any liens or judgments against it, such as mechanic's liens, outstanding taxes, or encroachment claims.
- You get paid! The cash buyer will most likely wire the money over to your bank account in a matter of weeks or even days.
In conclusion, selling for cash does not guarantee that a buyer will show up at your doorstep with a briefcase full of $100 bills. You'll still have official procedures to follow and snags like as a title defect may arise. However, because your buyer won't have to wait for the lender to underwrite or process their loan, you can be sure that you'll get your money in a timely manner.
Are cash-for-home businesses in South Carolina trustworthy?
In short, the answer is yes; there are many legitimate companies out there that purchase homes for cash. However, we always recommend that you do your due diligence on any buyer before you provide any sensitive information, sign a contract, or send any money. These tips will help guide you when exploring these opportunities:
Check their BBB rating
Make sure you work with an accredited Better Business Bureau (BBB) member, no matter what sort of house-buying firm you pick. Check for good feedback and quick responses to complaints.
Ask for proof of funds and EMD (earnest money deposit)
Shaun Simpson, a prominent Columbus, Ohio real estate agent who has assisted a number of clients through cash sales, suggests requesting official proof of funds from the buyer's bank and verifying that they can provide adequate earnest money, the deposit that represents a buyer's commitment to purchase. “You should have no problem putting a 2-3% deposit into earnest money," he says.
Consult a real estate agent if needed
If you're looking for a cash buyer, an experienced real estate agent will have access to information on who's who in the local cash buyer sector and can assist you avoid being lowballed.
What about ‘We Buy Houses?’®
Are "We Buy Houses For Cash®" firms for real? If you get in touch with any one of the company's genuine 1,150 franchises located across the country, you'll discover that they're legitimate. The firm, which specializes in purchasing houses that are in need of repair, has acquired over 100,000 properties and is well-established in the cash buying space.
Who will buy your home for cash South Carolina?
If you are a homeowner in the South Carolina area looking to sell your home for cash off-market, it’s important that you understand the differences between the various types of cash buyers out there. To keep it simple, we’ve grouped these buyers into a few broader categories you’re likely to encounter today.
iBuyers
An iBuyer is a cash buyer which has access to automation and technology. If you’re selling your home quickly and don’t need the traditional relationship of working with an agent negotiating on your behalf, an iBuyer is likely for you.
Buy and hold investors
Buy-and-hold investors buy houses and turn them into rental homes. These buyers, on rare occasions, will sell a property once it has appreciated sufficiently. On other occasions, they keep it for an extended period of time.
Individual investors who buy and rent out homes for a passive profit fall under this category. On a larger scale, institutional investors invest in at least 10 rental properties each year, the most famous example being Invitation Homes, a subsidiary of Blackstone that operates in 16 cities throughout America.
If you sell to a buy-and-hold investor, you'll have more flexible closing dates and likely receive better pricing than if you sold to a house flipper.
House flippers
If you think of Chip and Joanna Gaines or your uncle who is a remodeling fanatic, you might be thinking of "house flippers." Flippers buy houses — often in worse shape and at a lower price — with the goal of improving them and reselling them for more.
House flippers, like apartment syndicators, will pay cash for your property and tend to offer quick closing dates. Turnaround times range from a few weeks to a few months depending on how quickly they can get an inspection completed.
Flippers tend to keep properties only until the home has appreciated enough in value then sell it for a profit — they're in it for the money. Therefore, you might not get top dollar with a flipper because he or she will want to sell quickly and turn around the property.
Why would someone want to sell their house for cash in South Carolina?
According to Van Soest, sellers are turning to cash buyers for a variety of reasons, including speed, convenience, peace of mind, and financial incentives. Here's how each one of these drivers might apply to your situation.
Certainty
- You are relocating for a job and need to be in your new location by a certain date.
- You'd rather not take the chance of receiving a bad appraisal.
- You don't have the time or resources to hire outside contractors and make large repairs.
- You're apprehensive about accepting an offer with a lot of contingencies.
Speed and convenience
- You've just inherited a house you don't know much about, and it's probably a long way from where you live.
- You don't want to hassle with staging, cleaning, and repairs.
- Your life is too busy for all of the traditional steps in a home sale.
- You have a problematic or occupied rental property.
Finances
- You require cash for a down payment on your dream house.
- You need to pay off debt.
- You don't have the cash to make necessary repairs.
- You're on the verge of losing your home due to foreclosure.
What value does a cash buyer provide?
In other words, what do you get out of working with a buyer who pays cash that you wouldn't receive otherwise? The following are some of the most important advantages associated with this sort of arrangement.
Faster closing times
One of the best benefits to working with a cash buyer is that you can expect your closing process to go much more quickly. This is because cash buyers don't have to wait for their loan application and approval process in order to close on a home purchase. You see, in today's lending world, it often takes quite some time for homeowners to receive a loan commitment from a bank. So, if you're working with a buyer who needs to secure financing, this can delay the entire closing process. Cash buyers, on the other hand, can often close in just a matter of days.
Flexible move dates
In many cases, cash buyers are also more flexible when it comes to move-out dates. This is because they don't have to coordinate their purchase with a lender's schedule. Instead, they can simply make an offer on your home and give you enough time to vacate the property. This means that there's typically more wiggle room with regard to move-out dates when it comes to working with a cash buyer.
Lower-maintenance sale
Cash buyers also tend to be less demanding when it comes to property conditions. In other words, they're not as likely to nitpick about small repairs that may need to be made before the sale can go through. This is because they understand that, as the seller, you may not have the time or resources to take care of these things.
Reduced expenses
Finally, cash buyers can provide a great benefit to sellers in the form of reduced expenses. This is because they're not as likely to require home inspections or appraisals before the sale can go through. This can save you both time and money.
What are the downsides of selling for cash in South Carolina?
If you're still on board with the idea of selling your home for cash, that's fantastic. But before you go into a cash sale, it's vital to understand the potential downsides.
Lower price
When you sell your home for cash, it's likely that the buyer is going to offer a lower price. Why? Well, there are no appraisal fees or loan origination fees involved in the sale of your property. It's possible that they may even haggle you down below market value if they feel like they need to for potential repairs on the home.
Not totally off the hook for repairs
One of the most appealing aspects of selling to a cash buyer is that maintenance issues fall into their lap, not yours. However, this isn't always the case. In some cases, the cash buyer may want you to still address certain repairs before they take ownership of the home. If there are any significant repairs that need to be done, it's important to factor those into your negotiations.
Harder to negotiate
When you put your house on the market, you'll almost certainly receive proposals from several potential purchasers. They may already think of your property as their new home and expect themselves to live there, which can assist you in obtaining a better price. Cash buyers, on the other hand, are often investors who are looking for a good return on their investment. They're not as emotionally attached to the property and may be less willing to negotiate on price.
How much do cash buyers pay in South Carolina?
Depending on your house's condition, price point, and location, various cash buyers will be more interested in purchasing it than others. Most real estate purchasers have a certain "buy box" that they use with parameters defining which types of properties are most appealing to them. This implies that the value of your house will vary, even among buyers who may pay upfront.
Flippers, for example, often use the 70% rule. This is a reference to the minimum percentage of profit they aim for on each purchase. As a result, you can expect flippers to pay a maximum of 70% of your house's current market value. For example, let's say your home's ARV (after repair value) is $220,000. To get a rough estimate of how much they should pay you for the property, they will multiply that $220,000 figure by 0.7 – they'll get $154,000. But they're not done yet. They still must subtract their anticipated renovation and repair costs. Say they estimate that it will take them $40,000 to renovate your home before they resell it. Subtract that $40,000 from the $154,000 figure and you are left with $114,000. That figure is the estimated maximum price they would spend on your home, according to the 70% rule.
Investors in the Buy and Hold category are situated between flippers and iBuyers. They typically pay more than flippers but less than iBuyers, aiming for a return of 8 to 12 percent on their money.
How long does it take for a cash buyer to close?
Getting over that last hurdle to complete a conventional sale, ensuring that a buyer's financing is acceptable, might be difficult. Ice Mortgage Technology data shows that it took an average of 51 days to finish a deal with a loan in June 2021. That's almost two months of waiting. Cash buyers, on the other hand, can close in an average of 12 days.
Is selling for cash a smart move?
If you want speed, convenience, and certainty above all else, selling your home for cash may be the best alternative for you. You'll skip the bidding wars, be able to close fast (in as little as 7 days), list your home anonymously, avoid any hassles with real estate agents (who will be less motivated to sell your property quickly if they represent other potential buyers), and receive 100% of the sale price. You can even negotiate directly with an interested buyer.
What is certain is that businesses that buy houses for cash are here to stay. And, with a growing number of sellers, they are becoming increasingly popular.
If you want to sell your home for cash, let us know. Our team of experts at Target Property Solutions are ready and waiting to help you achieve your goals. You can begin by filling in the short form on this page to receive your free cash offer today!