The conventional way of buying and selling homes and condos in Ontario is to go through a real estate agent. Just because it’s the most common way to sell your home doesn’t mean it’s the best option for everyone. Depending on your unique circumstances, this approach might not be right for you.
Instead of using a real estate agent or selling your home independently, consider working with a cash home buyer.
A cash home buyer purchases residential properties, typically to rent out or resell later. As the name implies, they will provide cash to the home seller instead of paying through financing options.
Cash home buyers are legitimate actors in the real estate market. They are subject to the same rules and regulations as real estate agents and private lenders.
When selling your home, it’s crucial to thoroughly vet anyone you choose to work with to achieve your goal. Before choosing a cash home buyer, investigate their background to assess their experience in buying and selling homes in Ontario.
Private buyers often seek homes to live in and may want to explore various options to find the best fit. Private buyers might attend multiple viewings to determine if your home suits them, which can inconvenience the homeowner. This is one reason why selling your home in the traditional manner can take months.
After viewing your property, the cash home buyer can appraise it and provide an offer to buy within 24 hours. As mentioned earlier, cash home buyers purchase homes for renting or resale, so they are not selective about the properties. In a real estate market as hot as Ontario’s, you can get great value for your home even if it needs repairs or renovations or is not in the most desirable neighbourhood.
Being able to get a real offer on your home within 24 hours is one reason why many homeowners prefer cash buyers. They don’t have to deal with the process of looking for a good real estate agent, preparing their home for multiple viewings, dealing with strangers walking through their home and then cleaning up afterwards. This process can last for weeks or even months, causing stress and exhaustion for the homeowner, especially with time constraints.
A cash buyer only needs to spend about an hour or two looking at your home. They will take notes and gather information about your home to make their decision. The whole process of selling your home to a cash buyer can be as little as 48 hours. This can save a lot of time and effort on your part.
A cash buyer will get you paid much faster than a real estate agent will, and they can pay you in cash directly. When a cash buyer purchases your home you can get paid instantly. You will need to wait for the closing date if you sell your home the traditional way, which can be many months away.
When selling with a real estate agent, the closing date is negotiated between you and your home’s buyer, but it is typically set a few weeks to a couple of months after the purchase. The reason for this delay is that the buyer of your home will need time to get their mortgage approved, as they likely won’t have the funds to buy your home outright as a cash buyer can. Instead of waiting a month or so for the closing date to get paid, a cash buyer will get you the proceeds from the sale whenever you want because you can choose the closing date that works best for you.
Cash buyers provide flexibility that real estate agents or private sellers cannot. In addition to choosing the closing date that works best for you, the cash home buyer can offer to buy the home “AS-IS”, meaning they will not require you to make any repairs or renovations before they purchase it.
Selling “AS IS” also means that the buyer assumes responsibility for all damages to the property. The seller will have no responsibility for any undisclosed damages and will not be required to pay for any repairs.
If you are in financial trouble and need cash but still want to live in a home where you have created fond memories, you can opt for a rent-back option. With a rent-back option, you can sell your home to a cash buyer and live in it as a tenant. This could be a great way to get out of debt and remain in your home.
With the rent-back option, you wouldn’t have to go through the moving process, make any repairs or renovations if your home was damaged (they will take care of that for you), or pay a mortgage, utility bills, or property taxes and insurance.
With no real estate agent, you pay no commission. Real estate agents charge fees and commissions from 4% to 6% of the total value of the sale. Working with cash home buyers can save you tens to hundreds of thousands of dollars in fees and commissions alone. The speed at which you can sell your home and get paid ensures you won’t be paying to maintain your home for too long,
For those facing Power of Sale or foreclosure from your mortgage lender, selling your home before they take control of your property will help you get the most value out of your home. In the case of a foreclosure, you would get absolutely nothing for your home. With Power of Sale, you would get some money back after your lender gets repaid for your mortgage and pays off all their staff, as well as all the related administration and legal fees. During Power of Sale, administrative fees alone can reach as high as $30,000.
You are legally allowed to sell your home before your lender takes it over through Power of Sale or foreclosure. This will ensure your lender is repaid on your terms, allowing you to keep more money for yourself and save your credit score. The problem for many homeowners in this situation is that they have very little time to act. You can lose your home through the Power of Sale process in just over a month from the date you missed a payment. This is one reason why stopping Power of Sale is so hard. Instead of spending lots of time and money fighting your lender, you can work with a homebuyer and get your home sold fast.
As mentioned, selling your home to a cash home buyer can be completed within a day of their inspection of your home. No other method will allow you to sell your home faster, and for a fair price.
If you want to sell your home, considering a cash home buyer is a good idea, especially if you need to sell your home quickly. Working with a cash home buyer cuts out the middleman for selling your home. You get a ready-to-buy individual or business that can place an offer within a couple of days and lets you dictate the terms of the sale.
Cash home buyers save you money, time, and effort when selling your home. This can make the entire process easier and less stressful for you to manage. If you’re facing financial difficulties, this is the best way to get cash for your home quickly.
Selling a cottage or waterfront property can be much more difficult than selling a house. Cottages are often located far from cities and towns, resulting in fewer potential viewers for the property. Most cottages require a significant amount of repairs before the owner can list the cottage for sale.
Listing with a real estate agent requires preparing the cottage for showings and handling all necessary paperwork. Real estate agents typically charge a commission of at least 5% for selling cottages, given their longer selling times.
A cash cottage buyer inspects the property once and typically presents an offer to purchase within 24 hours. The buyer will purchase the property “as is” and the seller will not be required to spend money on repairs.
A cash condo buyer can inspect and provide the seller with an offer to purchase right away. The seller can choose between a quick closing date or waiting a few months for the condo sale.
With decades of experience across Ontario, Mortgage Broker Store helps homeowners understand options and make informed decisions. We have worked with homeowners from all shapes of life to get their homes sold fast. Whether we are selling a home in Sudbury, helping to fight Power of Sale in Hamilton, or providing mortgage solutions from Windsor to Pickle Lake, we can help any homeowner achieve their financial goals.
Homeowners often want to sell their homes quickly due to reasons like divorce, downsizing, damages, or expediency in moving. Regardless of your reasons, we can help.
If you are looking to sell your home fast or would like to learn more about cash home buyers, talk to our real estate experts by calling 416-499-2122 or visiting us online here. As lenders, brokers, and cash home buyers in Ontario, we can help find the best solution for you.
