If you’ve ever sold a home, you know that closing costs for sellers can be high. You have to pay a commission, which can range from 5 to 8 percent of the sales price, depending on your location. Other costs add to that amount. But with a cash sale, there are never any closing costs to pay.
What Is a Cash Sale?
When you list your home on the market, you usually accept the best offer, even if there’s a contingency that the buyer must get financing. But the loan underwriting process can be lengthy, and in some cases, the deal falls through.
With a cash sale, however, the buyer doesn’t need financing. They already have the cash on hand to pay for your home in full. It’s a direct sale between the buyer and the seller, with no mortgage companies or banks involved.
What Is a Cash Home Buying Company?
Sellers who list their homes on the market will probably not get an offer from an individual paying cash. Only a few buyers can afford it. But anyone who wishes for a cash sale may find one with a cash home buying company.
A cash home buying company invests in properties by buying homes and paying cash for them. Since they are prefunded, they don’t need to get financing, and all sales are cash sales. The process is simple: you contact the company, they make an offer, and you close on the deal.
Why Are There No Closing Costs?
In a traditional sale, a commission is deducted from your sales price and distributed to the people involved in the real estate transaction. But in a cash sale, you don’t have to pay a commission because there are no sales agents or brokers that need to be paid.
It’s also customary for the cash buying company to pick up any other closing costs involved. These costs can include transfer taxes, fees, and other costs that can add up to thousands of dollars.
When selling your home to a cash buying company, you will never have to pay closing costs. For this reason, it’s an attractive option for many home sellers who want a quick sale without the usual costs and hassles.
You’ll pay no closing costs when selling your Spokane area home to the Easy Home Buyer. Click here to learn more.