Selling Home to a Cash Home Buyer

When the time comes to sell your house to a house buyer there are so many questions to ask yourself. Are you pricing the property adequately? Where do you find a professional and reliable realtor? Can you market the property by yourself and expect a quick sale? Are you familiar with all the tips on negotiating when selling a house? Although these are typical questions for the initial stages of the decision to sell, the dilemma doesn’t stop there. 

Even when you’ve managed to attract potential buyers, should you sell to a cash home buyer in Utah, or perhaps it’s better to get in touch with a house flipper or a standard home buyer relying on a loan? 

Choosing your home’s new buyer is an essential part of the process and should not be underestimated, especially if you want to ensure a fast and easy approach in selling a house. In this article, we’ll help you understand cash home buyers better and have all the insights when it comes to this type of sale. 

Why Sell To A Cash Home Buyer

Man selling house to a cash home buyer

Cash Home Buyers vs. House Flippers

The dilemma of whether to sell your home to cash buyers or to house flippers is a popular one for almost any homeowner looking to sell. Once potential buyers start showing interest in the property, you may be tempted to sell to the first person that comes your way. However, before making a decision it may be worth exploring the difference between cash sale and selling to a house flipper. 

All-cash Offers 

For starters, let’s look at what a cash buyer or an all-cash offer is. The majority of real estate transactions include a house buyer who is looking to rely on a lender for financial support to back up their purchase. Buyers relying on financing may already have received approval but the reality is that they are dependent on the lender to make the decision whether they have been assessed as legitimate and capable of paying back the loan. They are also dependent on the property’s home value appraisal after a home inspection and other factors, which are not under their control. 

On the contrary, a buyer who makes an all-cash offer depends entirely on his current financial situation for the cash purchase. Homebuyers ready to jump in a cash sale have enough liquid assets to complete the purchase here and now. There are benefits of paying for the property upfront both for the seller and the buyer.

Advantages for cash home buyers

When it comes to the house buyer, a cash purchase can certainly be in their favor. The common belief is that the main party benefiting from such a transaction is the seller. However, the buyer also takes advantage of the peace of mind, lower costs, and other advantages.

Fewer expenses and saved time

When buying a property with a loan, you’re signing up for making regular mortgage payments for years. When you do the calculations, you may discover that a mortgage with a duration of 20 or 30 years may actually increase the purchase price for the property by two or three times, depending on the terms you’ve agreed. Furthermore, the closing costs associated with making a property purchase are dramatically lower when making a cash purchase as opposed to buying a home with a loan. Additionally, considering that time is our most valuable resource, opting for an all-cash purchase may be the right choice. As a buyer, you will save time preparing numerous documents and finding the right lender to work with.


The security and peace of mind from knowing that you own your home the minute you complete the purchase are unmatchable. An all-cash house purchase gives you the confidence and comfort knowing that you don’t have to put aside money for monthly mortgage payments. Even if you go through a challenging period of job loss or medical problems, you hold full ownership over your property meaning that you avoid all risk of foreclosure. In addition, paying for a house in cash also means that you have equity in the property that you can draw on in times of financial emergencies.

No risk of low appraisals

When it comes to the amount that the house buyer can borrow from the lender, it all depends on the appraisal of the property. Lenders establish the property’s value and worth by comparing it to other similar properties in the area in terms of the sales price. Sometimes, this skews the results as houses in the same location may have been sold for much lower prices due to other reasons that are not necessarily relevant to the market. If a house receives a low appraisal this means that the lender will not be willing to make a high enough loan offer to cover the sales price, which is usually higher. This may leave the potential buyer incapable of buying the house. 

If you’re prepared for a cash offer then these details cancel out of the equation. 

Advantages of cash sale for the seller

There are cases where a house seller will prefer a cash buyer over a higher-priced offer of a buyer relying on a financial loan. Despite the fact that the conventional sale will be finalized with a higher sales price, the seller is ready to sacrifice a portion of the money to prevent a slow process, potential complications along the way, and uncertainty. 

No need for appraisals 

For a lender to agree to financially support a home buyer, the property needs to be appraised if the transaction will exceed the sum of $400,000. There is a likelihood that the contract may be canceled if the appraised value is lower than the amount of the mortgage. This makes the closing dependent on whether the seller will reduce the price or the buyer will increase the down payment. The process of appraisals is lengthy and complex, adding substantial time to the closing process. Luckily, an all-cash offer does not involve lenders and therefore does not need appraisals. 

No risk of losing buyers

Another reason why sellers prefer cash buyers is that there is no risk of losing potential buyers due to the fact that they haven’t been approved for a loan. In order to secure a relationship with a lender and be approved for a mortgage, the potential buyer must cover a range of criteria. They must be able to prove at least two years of regular employment, financial stability, and more. However, these qualifications can change over time. The buyer may not always be able to offer the required proof but still be able to repay his mortgage. This leaves the house seller with no option but to reject the offer as the buyer is not authorized for a loan. When sellers communicate with all-cash buyers, there are no such problems that can come up on the horizon. 

Selling your house fast

If you’re a seller looking to get rid of your property quickly and get the money to invest in something else or to stabilize your financial situation, a cash sale is a perfect choice. When dealing with a sale with a loan, there is a minimum of one month that must pass for the sale to close. This time period can extend to two months or more. With a cash sale, after the property has been inspected, the sale can be finalized as soon as seven days after the inspection. 

House Flippers

House flipping is a lucrative process that attracts the attention of real estate investors as a quick and easy way to make some extra money from property. House flippers are real estate investors that buy houses with the sole purpose of quickly reselling them for a profit. For a house to be a flip, it must be purchased with the intention of reselling. When it comes to the types of house flipping, there are two ways a real estate investor can go.

They can either invest in a house and increase its value before reselling through repairs and renovations. Alternatively, investors can purchase homes in a market where the prices are dramatically increasing. In this case, they simply resell the property without any repairs but still make a profit. 

When communicating with a house flipper, check if there are commission rates for realtors. Some house flippers obtain a realtor license in order to practice house flipping freely while others work with an expert from a real estate agency. 

Advantages of house flippers for the buyer

House flipping can be financed by the investor either with cash or a short-term loan. Although the scenarios are different depending on the type of financing, there are a set of benefits of house flipping from the buyer’s perspective.

A good deal 

Considering that the aim of a house flipper deal is for the investor to make a profit, it’s natural to say that the house they purchase will usually be at a great deal and a relatively smaller price compared to that of the market. This could be as a result of needed repairs or renovation, poor appraisals, and more. However, for the investor, this not only means a good deal but an opportunity to make a profit in the future. 

A gained profit

Perhaps the most attractive part of house flipping is the potential to resell the house for a dramatically higher price, especially when you’ve put in the work for it. Once the investor has received the green light and necessary permits to renovate, the house value will rise thanks to the updates and upgrades made. In some cases the renovations may only be cosmetic whereas in different situations the renovation may be complete and thorough, requiring a large investment and time for completion.

Advantages of house flipping for the seller 

Now let’s look at the other side of the coin to see why a seller may prefer to give his house to a house flipper.

A straightforward process

Unlike ordinary buyers, house flippers usually have a lot of experience in the property market and know exactly what they’re looking for. If this is the case, communication becomes easier and quicker for both parties. The sale closure process is also usually quicker and stress-free as house flippers are investors who either have the necessary funds to purchase up front or have the desired connections and partnerships with lenders to achieve the goal.

Sell your house as-is

By selling your house to a house flipper you can sell it as-is. This means that you don’t have to put in any work and invest more money or renovation and repair costs. The house flipper will do that themselves after they’ve purchased the property. On the contrary, if you decide to sell to a standard house buyer, it’s unlikely that you will be able to get the price you feel your house deserves unless you take care of at least minor repairs. You would either have to lower the asking price or invest money in repairs. 

So let’s see what the buyers actually have to say about cash home purchases in Utah.

Cash Home Buyers Reviews Utah

When it comes to cash home sales in Utah, the best way to get an orientation of the sales process is to take a look at buyer reviews. It will also help you find a legitimate and reliable partner to work with. 

Some of the things that cash home buyers in the area have to say include:

“As an agent and contractor, I can say confidently that the team at CashQuick works with ethics and the homeowner in mind. Jeremy and his wife will do everything in their power to help someone out of a troubled spot, the seller’s well-being comes first.”

“Not being physically well, Jeremy helped us move everything out of our garage, and sort our family’s belongings before moving out of state. Leaving our home was hard, but he made the process easier both physically and on the heart.”

“I needed to sell my house quickly due to health reasons. I researched cash buyers online and after reading reviews and company information I decided to contact Enlight Homebuyers. Tyler contacted me the same day and after a very quick negotiation, I decided to sell my house to them the same day. They were very reasonable and offered a more than fair purchase price. They kept me in the loop every step of the way. The whole process was painless! “

“It was the best deal for me. I had 3 offers, Jason’s was the best offer. Everything he’s ever said to me he lived up to his word and was completely honest and believe me, I appreciate it.”

“I needed to be out of my home in 15 days. I received what I thought was a very fair offer. I didn’t have to wonder if he would qualify for the loan because they pay cash. I was able to sell my home to Cody without having to make any repairs to my home. I appreciate how kind Cody was through the whole process. I highly recommend using Cody with Utah Sell Now.”

Tips in Selling Your House to a Cash Buyer

If this is your first time selling a house then we’re here to help with tips for first-time home sellers. Especially when it comes to selling your house to a cash buyer, there are a lot of valuable insights to be aware of in order to ensure the process goes smoothly and you get the most out of the deal. 

Fair Cash Offer from a cash home buyer

Getting a Fair Cash Offer

When selling your house for cash you know that you can easily turn your equity into cash. However, keep in mind that when working with cash buyers you are most often not getting the highest price for the property. This is because in most cases you are selling your home as-is to investors or individuals who are prepared to make the necessary renovations and to repair the property. Because of this, seldomly will you receive a full market price offer. 

To ensure that you’re getting a fair cash offer you can use the 70% rule. In other words, remember that the potential buyer will gross 30% in extra income, which will be set aside for holding costs, insurance, overhead, and additional expenses. You can do a simple calculation where you multiply the estimated sales price by 70% and subtract the rehab costs. This will give you your maximum offer. 

Make Sure House is in Good Condition

Following the example from above, if you make sure your house is in good condition you won’t need to subtract a large amount from the equation for repair costs. The poorer the condition of your property, the more space you are giving cash buyers to negotiate and bring the price down. In order to resell or live in the property, they’ll need to take money out of their own pockets to fund the repairs. Sometimes, as a seller, if you invest a small amount in cosmetic repairs you may find that the overall condition of the property dramatically increases, meaning that you can expect a higher selling price.

Check if the cash buyer is regulated

Sometimes, cash buyers may not be individuals but rather cash buying companies or iBuyers. An iBuyer is a real estate investor that uses AVM or an automated valuation model to quickly provide cash offers for homes. When selling your house, you can choose to create your listing to make it visible for iBuyers. Make sure that you’ve checked the company in advance and you’ve ensured that they are legitimate and regulated to avoid unexpected situations during the process.

Final thoughts

We’ve now covered the major points of selling your house to a cash home buyer. We’ve made the distinction between a cash sale and a house flipper, we’ve laid out the benefits of choosing each, and we’ve provided useful tips for you as a house seller that you can use during a cash sale. If you’d like to receive additional information and see a real-life example, take a look at our case study on the topic. 

Get More Info On Options To Sell Your Home...

Selling a property in today's market can be confusing. Connect with us or submit your info below and we'll help guide you through your options.

What Do You Have To Lose? Get Started Now and let us get started putting together your offer...

We buy houses in ANY CONDITION in Utah. There are no commissions or fees and no obligation whatsoever. Start below by giving us a bit of information about your property or call (801) 845-3222...
  • This field is for validation purposes and should be left unchanged.

Leave a Reply

Your email address will not be published. Required fields are marked *

Call Us!