Although sales agents are required by law to provide you with a statement of closing costs in advance, you still may be amazed at how the expenses add up. The closing costs of selling a home can be higher than you might anticipate, for a number of reasons. That’s why a cash offer may be more appealing than you might think.
No Inspections or Assessments
Most closings typically include a property assessment, in which a trained professional inspects the property and provides an official evaluation of the home’s market value. There will also be a number of inspections.
A property inspector will walk through your home and look for any damage or defective systems in the house. Sometimes there is a termite inspection. Although the buyer usually pays for these inspections, if something bad is discovered, the cost is often borne by the seller.
No Renegotiation or Price Reductions
If a home inspection finds serious problems with your house, the buyer will often ask you to make the necessary repairs. If you decline or you’re unable to comply, the buyer may ask to renegotiate the purchase price. You may have to lower the price by thousands of dollars.
When you sell your home to a cash buyer, there are no assessments or home inspections. The cash offer takes into consideration the condition of your home and the cost of expected repairs. The original offer you accepted will stand.
The biggest deduction from your closing proceeds is the commission you pay to the sales agents. This is entirely the responsibility of the seller. Although commissions vary from place to place, they can be as high as 6 to 7 percent of your sales price.
You don’t pay commission to a cash buyer. They get paid when they fix up your house and resell it for a profit. Therefore, at a cash sale closing, the amount you are offered is the amount you will get.
Selling your home the traditional way can cost you, not only in closing costs, but in repairs and other expenses. When you add them up, the total can shock you. On the other hand, with a cash sale, there are no costs to you at closing or any other time.
See for yourself how the cash buying can save you closing costs and more. Click here to learn more.