If you’re a Chicago area homeowner, you’ve probably received a postcard from a home-buying company at least once. “We buy houses for cash! No hassles! Fast closing!” As good as this deal sounds, it’s a better deal for the buyer than it is for you. That’s because all-cash purchases come with one big catch: a lower sales price! Home buying companies offer around 60% to 70% of your home’s full market value, and sometimes more or less, depending on the local market.
Cash offers can also come through individual buyers when you list your home for sale. You might be dealing with an investor, or a well-funded buyer who intends to live in the home. In either case, the cash buyer typically expects a discount off the sales price, in return for the quick closing and lack of red tape. A study published in the Journal of Finance shows that cash buyers, on average, paid 10% less for a home than buyers using financing.
Despite the lower sales prices involved, cash offers are appreciated by home sellers for the transaction convenience and speed of closing. According to ATTOM real estate data, 1 in 3 homes sold in the U.S. during 2023 were all-cash purchases. A 2023 study by Redfin said that 24.4% of Chicago home sales were all-cash deals.
But is a cash offer the best offer? It depends on your needs as a home seller. If a fast closing is your number one priority, a cash offer is hard to beat. However, if you are looking for the highest possible sales price for your home, the cash offer will probably fall short of your hopes. Always take the time to evaluate each offer in detail. An attractive offer from a well-qualified home buyer, who has a mortgage pre-approval through a reliable, local lender, could be your best bet!
If you are selling your Chicago area home this year, call us for a pre-sale consultation. There’s no pressure and no obligation. We’ll discuss your home’s market value, and show you how to draw the best possible offers. And because we have many qualified buyers at the ready, we can sell your home quickly!
StartingPoint Realty – serving Chicagoland since 2004!
StartingPoint Realty proudly serves home buyers and sellers throughout the entire Chicago area. We offer free, first-time home buyer seminars every month! Contact us for your free home buying or home selling consultation!
Ryan Gable Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@startingpointrealty.com
https://startingpointrealty.com/
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