Traditional Sale vs. Cash House Buyers: Which Is Right for You?

Who Is a Traditional Buyer?

A traditional home buyer is someone who purchases a property through the conventional real estate process. This usually involves applying for a mortgage loan from lending institutions and making a 3-20% down payment. The buyer rarely pays all cash for the house, as the lender covers the remainder of the purchase. Additionally, the traditional buying process involves multiple professionals, including appraisers, home inspectors, and title companies.

Who Is a Cash Buyer?

A cash house buyer purchases properties without the need for mortgage financing. This is the main difference between a traditional and a cash buyer. As the name suggests, cash buyers have available funds to purchase homes outright. You don’t require a mortgage application or a lender since the sale isn’t contingent on financial approval. The most common cash house buyers include professional real estate investors, rental property investors, real estate investment companies, and affluent individuals.

Side-By-Side Comparison

Now that you know the different buyers, familiarizing yourself with their pros and cons can help you sell your house quickly without compromising your return on investment. Let’s look at a side-by-side comparison to ensure you consider the right factors.

Speed of Sale

As mentioned, cash buyers don’t require mortgages or lenders to intervene for the sale to go through. This means faster deals with fewer complications. Additionally, cash buyers have the money on hand, expediting the process. With traditional home buyers, the process is longer due to marketing, showings, and mortgage or lender approvals. A traditional sale can take 2-4 months, while cash buyers can get the paperwork ready in 1-2 weeks.

Price

Another notable difference is the buying price. Cash house buyers in Pittsburgh, PA usually offer 15-20% below market value to ensure a quick profit. While this may seem like a significant price reduction, you don’t have to wait months for inspection reports and other processes that prolong the sale. Conversely, traditional buyers aim to get the maximum possible sale price by using the open market. This can provide a higher return on investment, but it can take several months to finalize the sale.

Effort and Hassle

Cash home buyers alleviate rigorous and time-wasting practices, such as repairs, showings, and negotiations. By purchasing the property as-is, you can sell your house faster without a lot of hassle and effort. Unlike the latter, traditional buyers require sellers to handle preparations, marketing, showings, and negotiations. This takes more effort and time to close a deal.

Risk

When selling your house, the last thing you want is the sale to fail. Cash home buyers minimize the risk of such issues by providing the finances outright. On the other hand, a traditional sale has a higher risk of the deal falling through if there’s no secure financing or the transaction encounters complications.

Now that you know the available options, you can make the best decision for your situation. Contact Milo Buys Houses to book a consultation with our experts and enjoy a smooth sale without violating local codes or compromising your ROI.