Should I Sell My House Fast for Cash in Boise, Idaho?
If you have a home listed for sale, chances are you have either noticed the myriad of roadside signs that read “We Buy Homes Fast!” or perhaps you’ve even received an offer to purchase your home from a real estate investor. Here’s the scoop: The real estate market, even in Boise, has changed dramatically over the last decade and it’s becoming more common to find a typical house seller encountering investors; however, here we’re going to focus on how to sell your house faster and address the question of “What are the logistics of getting cash for my house?”
Before we really get started, let’s cover a few technical basics:
- To qualify for a tax-free sale, the home must qualify as your primary residence for two of the last five years (rules are different for Active Duty milita
- If you are single, $250,000 worth of Capital Gains are excluded from taxation; if you are married (and thus filing jointly) the amount increases to $500,000.
- Some of this money should be placed into tax deferred accounts – but you can’t just directly deposit it in a tax-deferred account such as an IRA or 401(k).
Costs of a Cash Sale
The majority of home sales are made possible by mortgage loans because, obviously, the cost of a house is the largest investment one could make in a lifetime (generally speaking). However, many home sellers in Boise do meet buyers willing to pay cash for their homes; because there are no buyer credit, appraisal, loan underwriting or other time-robbing requirements, a home cash deal can lead to ownership changing very fast.
Still, while a cash transaction can reduce the time needed to close a home’s sale, it usually doesn’t eliminate all of the costs the seller must bear. Have no fear, though, because we’re here to cut through all the confusion.
Here’s the primary thing you need to know: Parties selling their homes privately and who accept cash deals are still obligated to pay any county or state transfer taxes where required. Let’s now break down the additional elements at play here:
Home Seller Costs
Okay, so you should understand by now that home sellers must bear a number of costs when they sell their homes, including real estate commissions, even when it comes to cash sales. Beyond having to pay any state or county transfer taxes, home sellers may also pay for the buyer’s title insurance depending on the locality – even when an all-cash transaction takes place. The selling party is also normally responsible for paying any property taxes due at the time the home is sold.
Negotiating Home Sale Costs
If you take anything away after reading this, it should be that you’ve learned everything is negotiable when it comes to a real estate transaction – including the costs buyers and sellers agree to pay. Still, if your buyer is asking you to cover thousands in additional costs, even a cash sale can lose its luster…quickly. For example: Buyers using cash to buy may ask sellers to pay all buyer closing costs or for an appraisal on the home; if you receive a cash offer for your home, determine if there are any costs you may have to incur that can be negotiated away (we’ll go into more detail about inspections and appraisals below).
This is one of the best things about working with local real estate investors such as Northwest Home Buyers – we are open and honest, looking to provide a solution to help you sell your house fast for cash so you can move on with your life. Here’s a perfect real-world example of what we mean: We negotiated the terms of a down payment with a home seller to come out substantially higher than the terms of the loan, as the seller was carrying the note/mortgage (which is known as seller financing). This helped both parties get what they wanted.
Appraisal and Inspection Costs
A wise home buyer offering to pay cash for your home will likely ask for not only an appraisal to be conducted but a home inspection as well. An appraisal can evaluate a home’s market value, while a home inspection can divulge potential costly problems lurking within the walls of a house. Home buyers in a position to pay cash may ask sellers to cover any home inspection or appraisal costs (as we touched on above), and we’ve also seen instances when buyers and sellers vigorously negotiate on who pays for any needed repairs identified during an inspection.
Again, this is another great example of why sellers should work with investors to avoid this “common practice” – always remember: EVERYTHING is negotiable.
Seller Rental Costs
All-cash home sales can close in under a week or even as soon as two days, in our experience. If a cash deal is made and the transaction is finalized in a timely manner, you may need to stay in the home a bit longer. How long you can stay in your house after the sale closes is determined by negotiations with the buyer; if you stay in your home past the closing date, you may have to begin paying rent to the buyer.
The Ins and Outs of “Clean” Offers
A “clean” offer is one with few, if any, contingencies that could snag or cause a sale to fail. When writing offers to buy homes, reputable individuals in the Boise realty market try to write as clean an offer as possible in order to make the terms acceptable to the seller; there are no limits to the contingencies a buyer can add to their offer. Some are fairly standard and easily accepted most of the time, but with each additional contingency, a seller has a reason to say no.
The bottom line is this: The cleanest offer is the best offer because it takes most of the risk out of the transaction.
Selling to Home Buyers Using FHA or Government Loans
This process can cause disruptions such as demands for repairs, leading to an ultimatum saying the lender won’t/can’t back the loan due to strict guidelines and standards. Conversely, investors don’t encounter this problem and can work with you on the spot to come up with an active solution.
Many things can come up during the loan process – a typical home buyer may have a pre-approval letter from a lender, but that doesn’t mean he or she can buy your property. Just think about how much wasted time you could spend waiting for financing to come through with you buyer, only to have to re-list the property and start over. Additionally, the borrower’s credit rating could change due to him or her being unaware that, say, the new car they just financed kicked their credit to the curb, and that they’re no longer “fundable” by the chosen lender. Finding a new lender is going to take more time, and that’s something we can guarantee.
You can clearly see how much is involved in selling your home fast by owner, in addition to the many obstacles that can derail a deal from getting closed. That is exactly the kind of hurdle Northwest Home Buyers helps home owners just like you overcome – we are real people who negotiate the sale to meet both our objectives. We have helped others in the same situation as you when they came to us and said “Sell my house fast for cash,” which allowed them to move on with other pressing matters in their busy lives.
When it comes time to answer your own question of “How can I get cash for my house?” and to learn more about how to sell your house faster, contact us today.
If you find yourself facing foreclosure and unable to find tenants or maybe just inherited a home, in any case, we can help you sell your home in Boise in 7-10 days. If you’re thinking of selling and are exploring your options, consider selling directly to us.
Call our team at (208) 214-3365
If you don’t want to go through the hassle and headache of selling to the market, then we might be able to help. We’ll give you a quick call once we find out a bit more about your property in Idaho, and make you an offer on your home the same day.