There are a lot of differences between traditional homes sales and cash home sales. For example, cash sales tend to be a lot faster than traditional sales because there is no need to work with a lender. But what about the difference in costs and fees? Keep reading to find out.
Traditional Home Sale
While most of the closing costs are covered by the buyer, there are several costs that the seller is expected to pay in a traditional home sale. One of the biggest fees for sellers includes agent commissions. While negotiable, most agent commissions cost about 6% of the home’s final sale price. So, if you are selling a home for $300,000, then you could expect agent commissions to cost about $18,000! That’s quite a lot of money.
Cash Home Sale
It may come as a surprise to you that there are few—if any—closing costs and fees required of sellers in a cash home sale. While some cash buyers do require that the seller help pay for some of the buyer’s closing costs (title insurance fees, home inspection fee, etc.), most sellers can get away without having to pay for any fees. For example, most home buying companies take care of all the closing costs for their clients—and they don’t require agent commissions either!
Why the Difference?
In a traditional home sale, it is recommended that the seller work with a real estate agent. In working with an agent, the agent requires a commission where he or she receives a certain percentage of the transaction price. In a cash sale, sellers often don’t have to worry about working with agents, so there is no need to pay for agent commissions. Another reason for the difference is that the cash buyer has to pay fewer fees than a traditional buyer, so the cash buyer is less likely to ask the seller to fork out money for some of the final closing costs.
So, in summary, if you are looking to minimize the need to pay commissions or extra fees, a cash sale is the way to go. In selling your home at a slight discount, you won’t have to worry about the majority of the hassle and costs of selling a home the traditional way. And if you work with a home buying company, you won’t have to worry about any closing costs at all!
At The Easy Home Buyer, we make it simple to sell a home! Click here to get your fair offer—no commissions, hidden fees, or closing costs!