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Selling for Cash

How Many People Actually Sell Their Home For Cash?

March 23, 2023
How Many People Actually Sell Their Home For Cash?

How many people sell their homes for cash?

According to recent studies, the number of homeowners selling their homes for cash has increased significantly in recent years. In 2020, over 15% of all home sales in the United States were all-cash transactions. This trend is likely to continue in 2021 and beyond.

Reasons homeowners decide to sell their homes for cash:

There are many reasons why homeowners choose to sell their homes for cash. One of the main reasons is the desire for a quick and easy sale. When selling a home for cash, the transaction can often be completed in a matter of days, rather than weeks or months. This can be particularly appealing for homeowners who need to sell their homes quickly due to financial difficulties, job relocations, or other urgent circumstances.

Another reason why homeowners choose to sell their homes for cash is to avoid the lengthy and often costly process of listing their homes on the traditional real estate market. When selling a home through a real estate agent, homeowners must often pay for repairs and renovations, staging, professional photography, and other marketing expenses. In addition, real estate commissions can be as high as 6% of the sale price, which can add up to thousands of dollars.’

  • According to a recent survey by the National Association of Realtors, 22% of home sellers sold their homes for cash in 2020.
  • A separate survey by Zillow found that 36% of homes sold to iBuyers (companies that buy homes directly from homeowners for cash) in 2020 were purchased with cash.
  • The same Zillow survey found that the average iBuyer purchase price was $331,947 in 2020, with an average seller discount of 1.5%.
  • The top reasons for selling a home for cash include a desire for a quick sale (51%), avoiding the hassle of repairs or renovations (38%), and avoiding the uncertainty of traditional sales (33%), according to a survey by HomeLight.
  • The iBuyer market has grown significantly in recent years, with companies such as Opendoor, Zillow Offers, and Offerpad expanding to new markets and increasing their market share. In 2020, iBuyers purchased more than 60,000 homes in the US, up from 5,000 homes in 2014, according to Redfin.
  • Selling a home for cash can have some downsides, such as the potential for a lower sale price compared to traditional sales, and the risk of working with unscrupulous buyers. However, by doing research and working with reputable buyers, sellers can minimize these risks.

Here are some additional resources related to selling homes for cash:

  • The National Association of Realtors offers a guide to selling a home for cash, including tips on finding buyers and understanding the sale process.
  • The Federal Trade Commission provides guidance on avoiding scams when selling a home for cash, including red flags to watch out for and resources for reporting fraud.
  • The HomeLight blog offers insights and advice on selling homes for cash, including how to compare offers and negotiate with buyers.
  • The Zillow Offers website provides information on the company’s iBuyer program, including how it works and what types of homes are eligible.
  • The Redfin blog provides analysis and commentary on trends in the iBuyer market, including market share and pricing trends.

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