Fast Cash Sale
The fastest way to sell any property here in Dallas TX is a Fast Cash Sale or to sell it to a CASH buyer. This is because the cash buyer does not need to get qualified and approved for a loan, wait for inspections, or wait for loan documents. Cash buyers can make decisions quickly. Cash buyers can also take care of all closing costs, back payments, liens, or taxes, or whatever it takes to get the deal closed. A non-cash buyer typically requires 30-60 days or more to close on a property – most of that time is spent waiting for the lender to approve everything. Additionally, lenders in the DFW area always require inspections, surveys, an appraisal, and possibly even repairs that cash buyers don’t. A cash buyer can most of the time close immediately.
Virtually 100% of cash buyers are investors that are buying the property so that it can eventually be resold. This “flipping” of the property means that the cash buyer has certain overhead expenses that must be covered in the transaction.
For example, the cash buyer will have to pay the following expenses:
Closing costs on the purchase (~2% of sales price)
Commissions on the resale (~6% of sales price)
Closing costs on the resale (~3% of sales price)
Monthly carrying costs until the property is resold (~4-5% of sales price, total)
Necessary repairs/remodeling ($5-10K to $100K+)
These costs typically total to ~15% or more of the resale value of the property, which means that cash buyers can only afford to buy the property at 60% to 70% of its full market value in order to make a modest profit of typically 15% (of the resale price).
When you see a sign saying “I Buy Houses For Cash” it means “I’ll pay you up to 70% of the property’s value, and do it fast”. For some people, such as sellers with lots of equity that need or want money quickly, this is a great deal. For others with little or no equity, this is not an option. For those with modest equity, or that want or need to make more money selling the property (and have the time to explore other options), this is probably not the best option. Dallas Property Investors will buy your property for cash and offer you many other options. Contact Us if you would like to explore this further. Check also our 5 steps to buy your house.
Want to know more? check out the other eleven ways to sell your property in Dallas TX: