Things in life do not always go as planned. Perhaps you have just gone through a messy divorce and need a bit of extra cash. Or, you might have received a job promotion and are required to relocate to a different part of the country. These are two of the many reasons why you may be contemplating selling your home for on-the-spot cash. Is this really “easy money” or is it a bit more complicated than you may initially believe? Let’s take a look at the pros and cons of such schemes before drawing any type of concrete conclusion.
What is a House for Cash Plan?
In the simplest of terms, selling your home for cash means that you will not have to deal with real estate agents or the typical red tape associated with standard transactions. Thus, you will be placed in a much more liquid position than would otherwise be possible. A third-party agency will take a look at the property and offer a detailed valuation. If you agree with this figure, you will sign a sales contract and the house will be purchased by the firm in question. In the majority of cases, the entire process takes less than two weeks.
The major benefit with any type of house for cash plan is that you will be able to circumvent what could otherwise be a lengthy sales process. This is obviously important if time is of the essence. Reputable companies will provide a detailed survey and explain their reasoning behind the quotation that they have provided. This can also be a great option if the housing market is on a downturn or in the event that your home has been listed for some time and has not yet attracted any buyers.
The Potential Drawbacks
All that glitters may not be gold. We should first point out that the price you will receive is generally far below the current market value. In other words, you may very well lose money by choosing this method. A second issue is the fact that not all firms are trustworthy. There have been many examples of fly-by-night companies which promise the world and fail to deliver on the initial price. There are times when hidden terms and conditions will force you to pay further out-of-pocket costs even after the sale. Finally, we should always remember that you are still required to pay taxes on this transaction.
Finding the Best Firm
Always do a good amount of research beforehand. Only choose those companies which have a solid track record and are registered with the relevant governing bodies. Read the terms and conditions carefully and above all, ask questions if any clauses appear to be confusing or otherwise obscure. It is a good idea to perform a basic online search and see what others may be saying. Any transparent company will normally provide a host of testimonials from previous customers. If any firm is unwilling or unable to provide you with these details, it is a good idea to walk away before signing any type of contract.
Is selling your home for cash a good idea? The answer to this question depends upon how much research you perform as well as the current market value of your home. The bottom line is that there can be situations which dictate that such measures have to be taken. If you make the correct choices ahead of time, you will dramatically increase the chances of enjoying an appreciable amount of liquidity when it is needed the most.