Selling your home can be a time-consuming and difficult task as there are many factors to consider. One thing to considers is whether or not you are interested in selling your home to a cash buyer or professional buyer in order to receive quick payment and get the process over with as fast as possible. However, while cash buyers and professional buyers operate similarly, they have several differences that you should be aware of.
Cash Buyers vs. Professional Buyers
While not all cash buyers can be considered professional buyers, all professional buyers can be considered cash buyers.
More specifically, a cash buyer might just be a person who makes sporadic one-off investments in property. This person may not make a living through flipping houses and is likely just trying to make quick cash. A cash buyer could also be someone who plans to purchase a home to live in and offers cash in order to complete the transaction quickly.
On the other hand, professional buyers are individuals who have made a career out of investing in and flipping properties. These professionals are generally more reliable, safer to deal with, and will offer a more fair price for your home.
While this is a general idea of the differences between cash buyers and professional home buyers, there are more details to consider.
Selling Your Home As-Is
One of the reasons you might choose to sell your home to a cash or professional buyer is to avoid having to make costly renovations and repairs.
Professional buyers will be more willing and able to purchase your home as-is because they will likely have with insurance companies and construction companies. This allows them to save money when renovating your house before reselling.
Meanwhile, cash buyers will typically request that you make certain renovations to your home before offering to purchase it from you. As such, even if a cash buyer offers you more money than the professional buyer, you might end up making less overall.
If you choose to sell your home for cash, you probably understand that you will receive less than if you went through a realtor. However, cash buyers will likely offer you even less than you expected. These buyers are often inexperienced and try to purchase for extremely low prices to allow room for error.
Professional buyers might still offer you less than expected, but you should remember that selling your home for cash saves you from expenses such as real estate commission, repair costs, appraisal costs, and inspections.
Time to Sell
Professional home buyers typically have a long history of purchasing and flipping houses. As a result, they are able to quickly assess how much a home is worth, how much they will have to spend on repairs, and how long it will take to sell. Professional buyers will often be able to close in as little as a week.
Meanwhile, inexperienced cash buyers may take much longer as they take their time to fully evaluate the situation and weigh their options.
If you plan on selling your home for cash rather than going through a real estate agent, you should be sure to evaluate the reputation of any prospective buyers to ensure that you are getting as good a deal as possible.