Homeowners may have a variety of reasons why they need to sell their home in New Jersey. The standard reasons are job transfers requiring relocation, upsizing, or downsizing. However, for some sellers that own homes that need updating, repairing, or total rehabbing, the traditional Realtor route may not be the most convenient option to sell for a fair price. Also, some homeowners may not be financially or physically capable to carry out the necessary work to make their home retail market-ready. We listed below the top five most common reasons why homeowners prefer to sell their home as-is to a cash buyer in New Jersey.
1.) Save on Fees, Commissions, & Carry Costs
Selling a home is costly after adding up all the closing costs. The average Realtor’s commission is about 5-6% of the sale price of the home. Real estate transfer taxes can be as high as 2% in some states. The cost to carry a home if buyers begin to fall through especially if there is are mortgage payments due can begin to mount up the longer the closing process drags on. Selling to a company that buys homes for cash like Halo Homebuyers, will wipe out these costs. Also, because of the speed of a cash as-is transaction, carry costs can be greatly reduced.
2.) Save Valuable Time
Selling a home requires a time commitment. For example, let us say that you are fortunate enough to find a buyer relatively quickly after putting your home on the market. It is important to note that most times finding a buyer is the easier part, closing on the house is a different matter. The buyer will want to do a thorough home inspection coupled with an underground oil tank sweep, termite inspection, and radon inspection. Now let us say the inspector finds a buried underground oil tank. Hopefully, the Realtor knows what to do in these situations and is willing to put in the time to help. Otherwise, you will be spending your time learning what next steps to take, gathering quotes, and rectifying the situation all in a timely manner. This is just one potential situation that can hold up a sale and require your time and attention. You will also be responsible for passing township inspections include the fire safety inspection and obtaining a certificate of occupancy which might require more time and money. People appreciate that when selling as-is to a company like Halo Homebuyers, EVERYTHING during the closing process is taken care of. The closing time is reduced from 45-60 days to 10-20 days with no additional time commitments or out of pocket expenses from the homeowner.
3.) No Repairs or Repair Requests
Sellers find it daunting to have to repair items around the house, especially if they are working full-time and raising a family. Also, hiring contractors can be stressful because it can be difficult to find good help at a fair price. Plus, who wants to do major interior work during a pandemic with people in their house that they do not really know? This entire process can be stressful.
If you decide to sell the property on the market without making repairs, the buyer’s home inspector will be sure to pick up on those items. Be prepared to negotiate repair credits or repair requests the buyer may want you to do prior to closing. Homeowners like the benefit of not having to do any repairs around the house when selling as-is to a cash buying company like Halo Homebuyers. Also, there is no haggling over repair credits or repair requests during the closing process because cash buyers will handle the repairs so you don’t have to.
4.) No Junk Removal or Cleaning
Many homeowners that we work with tend to have accumulated a lot of “stuff” over the years. The problem is that they do not have the time, money, or desire to sort through everything and then figure out what to donate from what to throw away. Space can also be a problem if the homeowners are looking to downsize. If the plan is to put the home on the market, expect that you will be responsible for leaving it in “broom swept” condition as per the standard Realtor’s contract. In our contract, we stipulate that you can leave everything that you do not want behind. This benefit alone is a big reason why sellers decide to go the cash as-is sale route.
5.) No Buyers Backing Out
The reality of home buying and selling is that each one is hoping that the other party is acting in good faith and will stay true to their commitments. Unfortunately, due to the home inspection, appraisal, and mortgage contingencies, buyers have many outs that can enable them to legally cancel the contract. For example, the home inspection contingency enables a buyer to back out for almost any repair reason that shows up on the inspection report, no matter how small! Good luck suing for the earnest deposit monies, even if you have a strong case, you may spend more time and money trying to prove your case than it could be worth collecting. This is the reality of real estate. People like selling as-is to a cash buyer simply because there are minimal contingencies in the contract if any. There is a much better chance of closing with a reputable cash buying company than with a retail buyer. However, in full transparency, that is not to say it cannot happen. We have seen cash buyers back out of their contracts because we get those calls from the desperate homeowners asking us to help. It is crucial that you only deal with a credible and respected home buying company to ensure the closing will go as smoothly as possible.
If you would like more information, do not hesitate to reach out to us. We make the process easy, which is the best reason to sell your house as-is in New Jersey. Send us a message or call Halo Homebuyers at (908) 547-0404 to learn more!