The conventional way of buying and selling homes and condos in Ontario is to go through a real estate agent. Just because this is the most common way of selling your home, doesn’t mean it is the best option for everyone. Depending on your unique circumstances, this approach might not be right for you.
Instead of dealing with a real estate agent or trying to sell your home on your own, you can work with a cash home buyer.
A cash home buyer is an individual or business that purchases residential properties, usually to rent out or resell at a later date. 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.
If you are thinking about selling your home you should think about vetting whoever you decide to work with to achieve that goal. For a cash home buyer, you should check out their background to see what kind of experience they have with buying and selling homes in Ontario.
Private buyers are often looking for a home to live in, and will likely want to shop around for the best fit possible. They may need to attend multiple viewings to decide if your home is the right for them, which can be quite a hassle for the homeowner. This is one reason why selling your home in the traditional manner can take months.
After seeing your property, the cash home buyer can appraise it and come back to you in as little as 24 hours with an offer to buy it. As mentioned earlier they buy homes to rent or resell, so they are not picky about the homes they choose to buy. In a real estate market as hot as Ontario’s, you can get great value for your home even if it needs repairs, 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 cycle can last for weeks or months and can be quite stressful and exhausting for the homeowner, especially if they have a limited amount of time.
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 to sell 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. When you sell your home the traditional way, you will need to wait for the closing date, 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 selling 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 the home you have created fond memories in, you can opt for a rent back option. With a rent back option, you can sell your home to the 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), 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 4-6 percent 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 commission 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, 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 saving 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 who 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 are dealing with financial difficulties, this is the best way to get cash for your home in a timely manner.
Selling a cottage or waterfront property can be much more difficult than selling a house. Cottages are usually far away from most cities and towns which means that less people are likely to view 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 means that someone must clean and prepare the cottage for showing and deal with all the paperwork required by the real estate agent. Real estate agents will also want a commission of no less than 5% since cottages take longer and are harder to sell.
A cash cottage buyer will inspect the property once and present you with an offer to purchase usually 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 if they would prefer a quick closing date or wait a few months for the condo sale.
As a company that has been working with homeowners across Ontario for decades, Mortgage Broker Store can help you understand your options and give you the information you need to make the best decision available. 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.
There are many other reasons that homeowners have wanted to sell their homes fast, like divorce, downsizing, expensive damages, or simply those that want to waste as little time as possible when moving. Regardless of what your reasons are, 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 work with you to find the best solution for your unique situation.