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5 Situations When Selling To A Cash Buyer Is The Best Move

5 Situations When Selling To A Cash Buyer Is The Best Move

When does it make more sense to sell your home to a cash buyer than to list it with a Realtor?

There’s more than one way to sell your house. The right move is all about what is best for you at the moment, and in your unique situation. 

How To Sell Your House

The three most common ways to sell a house today are:

  1. To list with a real estate broker
  2. To put out a For Sale By Owner Sign and hope for the best
  3. To sell directly to an investor who can pay cash and close quickly

Very few homes actually sell as the result of owners putting out yard signs, running classified ads, or other for sale by owner advertising methods. Less than 10% of houses end up selling this way. 

Some property owners have all the luxuries of time and money to make repairs, stage their homes, entertain endless showings, and to wait for months for a buyer to secure new mortgage financing to buy their homes. If this sounds like you, and you want an agent to handle it all for you for a commission, then it may be an appealing option.

However, more and more homeowners are choosing the faster, easier, no commission option of selling directly to a cash buyer instead. 

If you find yourself in any of the following situations, then this third option is probably the best move for you.

Homes With Bad Tenants

One of the biggest problems that landlords and homeowners face today is having their properties occupied by non-performing tenants. 

This may just be squatters. Or it could be a renter who is milking the system to not pay their rent. Or they may be damaging your property and exposing you to liability through their actions. Perhaps they have dangerous dogs, aren’t clean, or are getting into trouble with the law and neighbors. Some may even threaten to sue you so they can stay for free.

Not many buyers are going to want to take these situations on. Realtors won’t be able to do their jobs. Each day that goes by is costing you a lot of money and risk. 

The right cash buyer with experience in these situations could help you sell in as little as one week and put an end to your losses. 

Facing Bankruptcy 

There are sometimes when even really big companies have gone bankrupt and then survived. Though lawyers who make money from filing bankruptcy paperwork can often make it sound more affordable and appealing than it might really be. 

Bankruptcy will impact you for at least 7 to 14 years. It’s not cheap or fun. 

No matter how you ended up here, you could still sell your home before entering bankruptcy. You might even put more cash in your pocket than you think, and be able to get out from under all that bad debt. Especially if you sell directly to a cash buyer with no real estate commissions. 

You Have Liens

There are many types of liens which can impact homeowners. 

This can include:

  1. Tax liens
  2. Mechanics liens
  3. Building code violation liens
  4. Judgements
  5. HOA or condo association liens

You may also have your wages and bank accounts garnished at the same time. 

In some cases, these liens can lead to losing your home by seizure or auction. All can eat up your equity and make it almost impossible for buyers who need mortgage financing to buy your home. 

The right cash buyer may even be able to help you negotiate a lower lien payoff, save more of your equity, and put more money in your pocket at closing.


Many people end up in foreclosure. Often through little to no fault of their own. Don’t feel bad about it. Do take action to make the best of the situation.

You could be in foreclosure due to late mortgage payments, past due property taxes, or due to insurance or other forms of fraud committed by your own mortgage lender. 

You still have a chance to sell your home and preserve the equity you have. Though each day will mean you are losing more and more money in fees and penalties that you could otherwise walk away with to find a new place. 

Waiting months for a realtor to list your home, secure an offer and close probably won’t work for you in this situation. 

The earlier and faster you can sell, the less you will lose. 

You Are Relocating

When you are moving, the last thing you need is to have to constantly travel back to your old home and town to show the property to potential buyers, make sure no squatters have broken in, or to be juggling two house payments, and sets of taxes and utilities. 

Sell fast and use those savings and proceeds to make the most of your new life and location. 

Other Reasons Selling Directly to A Cash Buyer Makes More Sense

These situations also mean you probably need to sell your house faster than listing with a realtor can take.

  1. There are repairs you can't afford
  2. Pending regulatory or rules changes could devalue your property
  3. Pending tax or association assessments
  4. Coming tax hikes
  5. You’ve inherited property
  6. You are divorcing or separating