Closing costs are a major consideration in most home sales in California. They usually cost around 2% to 5% of the sale price, with sellers picking up most of the tab. In recent times, that has meant an average cost of $7,953 in California.
But the good news is that when selling a house for cash, these closing costs don’t apply. You read that right – closing costs are zero when you sell a house for cash. Why is that the case, and what other costs could you save by selling a house for cash?
Let’s explore the answer together.
Selling a house for cash could sound like a strange decision. After all, California is known as a seller’s market that enables people to get top dollar for their homes. This sounds great, but there are lots of hidden costs to factor in.
For example, if you sell using a regular realtor, you will have the following costs to pay:
The difference when you sell a house for cash is that the company buying it simplifies everything for you. There is no need for an appraisal — they buy the home as-is. They will also pay all the closing costs.
What this means for you is that the price they offer is the price you pay. This is true regardless of whether your house is worth a million dollars or somewhere south of that.
It’s easy to bandy about the term “closing costs,” but what exactly are they? A quick breakdown will help you see how much you save when selling a house for cash.
California realtors do not come cheap. Fees vary, but you can usually expect to pay 5% to 6% of the sale value of your home in commission alone.
Most buyers will ask for transfer insurance to protect themselves if there are issues with the title. This may cost as little as a few hundred dollars but can quickly reach the $1,000 mark.
You can save yourself these costs when you sell a home for cash, as the buyers take it as-is.
Currently, California property owners must pay a tax to transfer ownership of the property. This tax could run to around 0.11% of the sale price. It is not as costly as other closing expenses but will add to your burden.
Recording fees are charged by the city or county where your house is located to record the real estate transaction. These fees are usually relatively low, often costing around $200.
These are just headline fees; depending on your home’s location and value, there may be others.
Most of the time, we probably want to sell our homes the hard way. It’s time-consuming and stressful, but it may give us the best chance of securing a high price for our homes. However, there are times when it’s just not the best option.
Selling a house for cash can save you a lot more than just the closing costs.
You may be in the process of divorcing and want to move on with your life. You might have inherited a home that is now a burden rather than an asset. These and many other scenarios may lead you to decide it’s best to cash out your house as quickly as possible.
When you work with a property-buying service, you can get an offer within a day. After that, you can close in around a week or choose another date that works for you. Because there is no financing to arrange for the buyer, there is less pressure to close within their timescale.
That means that within one week, you could bring an end to:
You may be able to use the cash to settle outstanding debts or start a new life elsewhere. It’s up to you what you do with the money.
Home repairs can be costly. You may have bought your home and planned to fix it, but that’s no longer realistic due to a change in circumstances. Or you may have gotten older and can’t face the stress of fixing it up again.
You may know that before an appraisal, your home would need serious work.
Whatever your reasons, they will take care of everything when you sell your home to a cash-for-home service. As soon as the sale is completed, their crew will assess the property and make any needed repairs. Once it has been fixed up, they will relist it.
Sometimes, you just need a stress-free way to sell your home. It’s tough to relax when you sell your home using the conventional route. You have to keep your home looking its best day in and day out, just in case someone wants to view it.
You will have to clear out when the realtor wants to show someone around. Then, you might get involved in protracted negotiations and have to wait for surveys. Many buyers drive a hard bargain; if you back out, you’re back to square one.
Selling a house for cash may not be the best way to get the most money for your home, but the pros can outweigh the cons in many situations.
We understand that selling a house for cash is a huge decision. However, the closing costs and other expenses soon mount up and eat into your profit. When you sell a home for cash, you have zero hassle and can get your cash fast.
At Premier Property Buyers, we will give you cash for your piece of California real estate and close within just 7 days. You’ll be able to move on with your life without lifting a finger in repairs or paying a penny in closing costs.
First, Compare the costs, second, check out all the areas we buy houses for cash then, contact us for a cash offer for your home today.
Our Promise
Premier Property Buyers is a company that purchases, rehabs, and then sells houses at a profit. Offers are made to sellers based on market value and repairs needed. Premier Property Buyers, will do everything possible to bring forth the highest possible offer to give the seller the most benefit from dealing with a fast sale. In addition, we are licensed real estate agents and can either buy your house for cash or help you sell the more traditional route. DRE Lic# 01918543.
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