When you’re putting your home up for sale, some of your biggest questions will undoubtedly be who is going to buy it, and how they are going to pay. Those are good questions, and ones you should spend some time considering.
Of course regular families and individuals make the up the vast majority of people who buy homes, but more and more people each year are choosing to sell their home to investors. Roughly 37% of single-family dwellings were purchased by investors in 2015, and just about the same percentage of all home sales are cash transactions.
Experts believe this rise in cash purchases may be due to market reaction to new documentation and disclosure laws that took effect last year. These new regulations require lenders to provide not only more detail about the terms of mortgage loans, but also give them more time to examine and consider these terms. While in theory this will be a good thing for consumers once the kinks get worked out, it’s causing some delays in closing, which means buyers who need financing can’t compete with cash buyers, who can typically close on a house very quickly.
When deciding how to sell your home – and to whom – take into consideration not only the time and money it takes to get your home ready to sell but also the time it may spend on the market, and the amount of time it takes the buyer to obtain financing and close.