Whether you are evading a foreclosure or want to make easy money on an inherited property, you may be considering selling your house to a cash buyer. Perhaps one of the biggest reasons why you plan to do business with a cash buyer is because you want a quick and painless home-selling process, without having to worry about all the extra fluff involved in selling a home traditionally. But does selling your home for cash allow you to circumvent the closing costs? Continue reading to find out.
The easy answer to this question is, well, it depends. There are a variety of types of cash buyers out there and they will all have different expectations when it comes to who pays for what. For example, many home buying companies or house flipping investors are willing to pay for a proportion of, or even the entire cost of, closing on a home. This is because many of these buyers want to make the home selling process as painless as possible for their clients—and they tend to factor the costs into their cash offer as well.
… and No
On the other hand, if you are working with an individual buyer, you may still be expected to fork out cash for closing costs. These individual buyers are usually people who have a lot of money saved, often from the sale proceeds of a former property, and are looking to buy a new home without having to take out a mortgage. Since these buyers aren’t investors, they won’t often be as interested in paying for your closing costs.
Buyer vs. Seller
Another important thing to think about when it comes to closing costs is that there are generally two different types of closing costs: buyer and seller. Depending on the cash buyer, you may be expected to chip in when it comes to the seller costs, particularly if the buyer closing costs are high. Nevertheless, if buyer costs are low, your cash buyer may be more willing to strike a deal to help you pay for the seller costs.
In summary, whether or not you will be expected to pay for seller closing costs depends greatly on the cash buyer you are working with. Therefore, don’t just assume that the seller’s costs are just part of the deal. Be sure to actually communicate with the home buyer before signing any agreements.
Looking to sell your home fast for cash with no extra fees or costs? Click here to learn what SOS Home Offers can offer you for your house!