An all-cash buyer might seem like a dream come true – and it is when Osborne Homes is your buyer! We say that because we are cash buyers that do not require sellers to make repairs. In fact, we buy homes in any condition. However when a cash buyer comes along on the open traditional market, and you’re selling house that needs repairs, you can’t be too sure what they are going to expect from you. Are they going to require the repairs be made to the home in exchange for their generous offer? They most likely will.
Selling your property, in general, can be a complex process, but that is especially when you are trying to sell a house that needs work. For this reason, having an understanding of what cash buyers may hold you to can make the entire transaction go much smoother. In this article, we discuss cash home buyers, what repairs they typically expect homeowners to make, and if there is any way around having to do so when you really don’t have the time or money for it. Stay tuned!
What is a cash home buyer?
All cash home buyers are individuals who come to the table to pay for the entire purchase price of a home with all and only cash. These deals often close more quickly than those involving loans or financing, since there is no additional paperwork from lenders and no waiting period for pre-approval or appraisal of the home. Sellers also benefit from not needing to provide any concessions to buyers in order to help them secure financing, which can often be required when dealing with buyers reliant on mortgage loans. Additionally, all cash deals eliminate closing costs associated with traditional mortgages.
Who would want to pay all cash for a home?
Every buyer that comes along has a unique situation and story. Here are some of the types of buyers who might want to pay all cash:
People with money from a previous sale or an inheritance
Although sometimes seen as a rare occurrence in recent years, there is still a demographic of home buyers who choose to pay cash for their purchase. These are likely people who have recently sold another property or come into an inheritance and see all cash as their best option when it comes to real estate.
Buyers who want or need a quick closing
Some buyers may be looking for a convenient way to pay for their new home without having to go through the tedious mortgage process. They don’t have to worry about getting approved for a loan or dealing with interest rates and payments each month. This can free up more money in their budget that can be used towards renovations or upgrades that make the house feel like home sooner than later. Many times families that are growing and have a baby on the way need a quick closing so they can get their nesting done before the new arrival.
Or they’re an investor, like Osborne Homes
At Osborne Homes, our commitment to savvy investment means that we prefer to do business using an all-cash approach – providing us with quick closings while allowing us to capitalize on smart opportunities in this rapidly changing market. We make all cash payments for many smart reasons. Cash transactions offer greater speed and convenience compared to financing, they can secure better pricing from motivated sellers at times, simplify the paperwork involved in the purchase process, and also eliminate potential extra expenses like appraisal costs, title insurance and fees that come with traditional financing.
Do cash home buyers require repairs on the home?
Other than Osborne Homes, which never requires repairs when we buy properties for all cash, many cash home buyers aren’t willing to buy the home as-is and require some or many repairs to a home before the close of the sale. Home buyers who use cash typically don’t want to face large renovation or repair costs after purchase, so it’s important to disclose any problems before finalizing a sale. It’s also possible for buyers and sellers to negotiate repairs, either by providing money for the seller to complete them or taking a lower sale price in lieu of repairs.
Factors that may influence a cash home buyer to require repairs
What makes a cash buyer attractive – their ability to close quickly and without appraisals or loan contingencies — also means they likely have little financial incentive to buy a home that might require extensive repairs. Consequently, this can be a deciding factor upon which they may base their purchase decision.
Factors such as the age of the house and its appliances, necessary labor costs associated with any repairs identified during an inspection, and the size of financial investment relative to desired return all come into play in the buyer’s determination if making repairs is worth their while. Ultimately, cash home buyers want to buy homes that make sense from both a business perspective and from one of convenience; which may put a damper on things when you are trying to sell a house that needs work.
The role of inspections and repairs in the process
Cash buyers usually want to know what’s up with a property before making a decision to purchase and so they will always want an inspection. Inspections generally involve an in-depth assessment to determine damage or risks associated with the property, such as any pest activity that could have impacted the integrity of its structure or the safety of its occupants.
Concerning repair requirements, cash buyers are mulling over whether or not they have enough funds to cover needed repairs. It’s possible that they won’t need to do anything, but it’s always best to prepare for any unexpected expenses as they arise. At the end of the day, thorough inspections and repairs can make all the difference in a cash buyer’s decision-making process when buying a new home.
What are some of the most common repairs that are requested by these types of buyers?
California homes are some of the most expensive in the nation, so when an all-cash buyer comes along, you know they’re serious. But it also means they likely want the home to be move-in ready. Some of the most popular repairs requested by cash buyers include:
- Replacing worn-out flooring and carpets
- Installing new windows
- Upgrading outdated light fixtures
- All new electrical wiring
- Repainting interiors
- Re-staining exterior woodwork
- Repairing cracked foundations or walls
- Fixing plumbing issues such as leaky faucets or water heaters
- Replacing aging roof tiles
When selling house that needs repairs, keep in mind that it’s going to require an investment in time, money and expertise to get the repairs done. If you don’t have those three things – time, money or expertise – then you better give us here at Osborne a call. We will buy your home as-is, even if major repairs are needed.
Want to avoid repairs and still walk away with cash?
We know that life happens and sometimes you need to sell a house that needs work – without having to make any of the repairs. You might be sitting there thinking, “but my house needs so much work!” That’s quite alright. Here at Osborne Homes, we will buy your house for all cash and we don’t require any repairs whatsoever. This is a great option if you’re facing foreclosure or if you simply need to walk away from the property for whatever reason. If you’re interested in learning more about this process, please fill out this form and one of our representatives will be in touch shortly.