Most home sellers do not know what a cash home sale is or that they even exist. Consequently, they don’t know that there are other options outside of a traditional home sale. So, when the time comes to sell a house, the first thing the seller is likely to do is to ask around for a real estate agent in their area.
Sadly, sellers in difficult situations such as foreclosure, bankruptcy, divorce, or probate will spend more money to get out of those situations when doing a traditional home sale.
Below, we look at the difference between a traditional home sale and a cash home sale, so you can make a smart decision on what type of sale is best for you. You can also see how a cash sale will save you time and money if you are in a difficult situation that keeps you from selling your house the traditional way.
Understanding Both Types of Home Sales
Let’s start with the basics. Below is a description of a cash home sale and a traditional home sale.
What Is a Traditional Home Sale?
A traditional home sale is a real estate transaction in which you hire a real estate agent or broker to sell your house on the real estate market. You make repairs or upgrades to get your house ready to show to potential buyers. Once you find a qualified buyer, you negotiate the price and terms of the sale. Afterward, you close the sale.
What Is a Cash Home Sale?
A cash home sale is a real estate transaction where you sell your house directly to a home buyer or company that buys homes. You do not hire a real estate agent or list your house on the market. The transaction is private and occurs with no moderator. In most cases, you sell your house as-is for cash. You make no repairs and do not have to prepare the house for a sale.
Comparing a Cash Home Sale vs. Traditional Home Sale
What makes each type of home sale unique? Below is a chart that makes it easier to understand the difference between a cash home sale and a traditional home sale.
|Realtor||For Sale by Owner||M1 Home Buyers|
|Commissions Fees||6 percent||Zero||Zero|
|Closing Costs||Pay up to 100%||Pay up to 100%||We Pay 100%|
|Average Selling Time||60 to 90 days||6 to 12 months||7 to 21 days|
Home Sale Timeline
On average, a traditional home sale can take 60 to 90 days. That doesn’t include the time you spend getting the house ready for a sale and the closing process after finding a qualified buyer. A cash home sale typically takes between seven to 21 days. The process includes the cash offer and the closing process, with fewer steps than a traditional sale.
Home Selling Expenses
There are three main expenses in a traditional home sale: repairs, realtor commissions, and closing costs. These expenses can add up to thousands of dollars that you didn’t plan to spend when combined. A cash home sale costs you virtually nothing because you don’t make repairs or pay realtors. Closing costs vary but are typically little to none.
You may be in a difficult situation that makes a traditional home sale impossible. A cash home sale is more doable in foreclosure, bankruptcy, probate, divorce, downsizing, or relocation. A home buyer who buys a house as-is and pays cash is typically willing to take on all the issues related to the house, giving you more flexibility to sell your property.
Contact M1 Home Buyers to Get a Fast Cash Offer in Detroit
If you are ready to sell your house fast in Detroit, MI, we are here to help. M1 Home Buyers can look at your house, make an offer, and close the sale quickly. We buy houses as-is. Call 248-397-5800 today to get a fast cash offer.