If you are looking to quickly and easily sell your home in Ontario, a Cash House Buyer might be an ideal solution. This page aims to answer most of the most common questions regarding Cash House Buyers and inform people on what to expect when dealing with them.
What is a Cash House Buyer in Ontario?
A “Cash House Buyer” is an individual or corporation with the cash on hand to purchase real estate outright. Their goal typically is to rent or resell the property for a profit.
People usually turn to Cash House Buyers when the traditional method of selling on the open market with a real estate agent isn’t a good solution. The two most common reasons for this are:
- Because the seller needs to get the sales proceeds quickly.
- The property condition or occupants prevent open house showings.
Since Cash House Buyers cater to people with the issues mentioned above, they specialize in quick closings and purchases of damaged properties.
What Kind of Price Can You Expect?
A Cash House Buyer, such as Mortgage Broker Store, buys houses for cash based on the condition of the house and any terms the seller requires. To come up with a fair price, a buyer will look at the selling prices for recent comparable homes in the same area. These buyers use government property databases, real estate agent evaluations, online property websites, and appraisals for finding comparable homes.
A buyer would first calculate the average selling prices for comparable properties in the same neighbourhood. Then they would deduct the costs of any needed renovations or repairs from this average when considering their cash offer. These buyers consider any repairs that need to be made right away to the property, such as a roof, bathroom or kitchen repairs. Any special requests, such as a more extended move-out period, may also reduce the offer amount. Cash buyers may purchase houses, condos and vacant land across Ontario.
Have More Questions?
As Cash House Buyers ourselves, we can directly answer any questions you may have about the process. Since everyone’s situation is a bit different, we can look at your unique circumstances and give concise and actionable advice.
There will be no real estate fees or commissions when you sell the house to the cash buyer. However, the buyer’s offer will reflect all costs related to reselling or renting the property and their desired profit margin. Typical costs they will consider are real estate agent commissions, property managers, lawyers, land transfer taxes, admin costs, among other things. A standard offer from a Cash House Buyer is usually 75% to 95% of the appraisal value.
Why Sell For Fast Cash in Ontario?
While every homeowner would like to market their home and get the highest possible price, this isn’t possible in many situations. The most common issue our company sees is that the homeowner is undergoing some legal process that will take away the owner’s control over the property. In other cases, an owner has other urgent personal or business debts with no way to pay. Some situations where fast cash sales can help include:
- Eviction due to non-payment of mortgage
- Eviction due to non-payment of property tax
- Divorce or separation proceedings
- Escalating disputes between owners
- Paying back mounting business or personal debt
Selling a house in today’s real estate market is not the best option for every homeowner. If you need cash right away a real estate agent may not be able to help you. In some cases, your best option is cash house buyer that will purchase your house with a firm cash offer.
What if The Property is in Poor Condition?
Most Cash House Buyers make “AS IS” offers on properties regardless of the property’s condition. When a house is sold in “AS IS” condition, the seller makes no warranties as to the property’s fitness. If there are any defects, such as a leaky roof or wet basement, the cash buyer assumes all the responsibility and expenses to repair the problem.
A cash buyer that buys “AS IS” will take over the home with any contents in the property. The seller can make arrangements to pick up their content later or let the buyer deal with the contents. In all “AS IS” sales, the cash buyer is responsible for removing contents and cleaning the house, yard and any other buildings.
Even when the property is damaged so severely that it is unsafe to enter, a cash buyer may still offer a purchase. In extreme cases, they may rely on inspections from specialists or photos and videos from the homeowners.
Cash Buying Process for Ontario
Cash offers are reasonably straightforward. The buyer will come to your property and inspect it. The inspection usually takes an hour or two to complete. The buyer will obtain pictures of all rooms, kitchens, bathrooms, basement, roof, and outdoor areas.
The cash buyer will then present the seller with an offer, usually within 24 hours after the inspection. The offer will include any special terms or conditions requested by the seller. One such term might allow sellers to use the garage to store the contents of the house and the driveway to leave their boat or trailer for many months. These options can save the seller thousands of dollars in storage costs.
A cash buyer that buys “AS IS” will take over the home with any contents in the house. An example is an estate sale where the trustee does not want to spend time and money to empty and clean the home. Since the sale is “AS IS” the cash buyer is responsible for the removal of contents and cleaning the house, yard and any other buildings. Cash buyers can be very flexible regarding the terms of the sale. For instance, the seller can have a quick closing date or a closing date several months from the signing date.
Sell and Rent Back Option
Our cash buyers also offer sellers the option of a quick sale while allowing the sellers to remain in the property as tenants. This special allowance is called a “sell and rent back” option. Sellers can stay in their home for 1, 2, 3 years or longer. The amount of rent paid will be determined by the home’s equity and the selling price.
For example, a homeowner sold their house to our company at a price that allowed us to charge no mortgage or property taxes for five years. The seller is responsible for all utilities such as hydro, gas, water, and other user services.
The advantages of the sell and rent option are below:
- No need to move or moving expenses
- No Expenses or hidden fees
- No open houses
- Do not pay any mortgage
- Do not pay property taxes
- Do not pay property insurance
- The new owner will pay for house repairs
- Guaranteed term to live in the house rent-free
The sell and rent option is an excellent choice for people that have substantial equity in their home and plan to move to another residence in the future.
How Can I Contact a Cash House Buyer?
There are many Cash House Buyers in Ontario, including our company Mortgage Broker Store. Popular methods of finding these buyers include searching local classified sites such as Kijiji and searching via Google. Ontario is home to hundreds of Cash House Buyers, and it is not uncommon to find advertising for their offerings in both physical and digital mediums.
Speak With A Cash Buyer Right Now
With quick and friendly service, we are always happy to offer free advice. Whether you are serious about selling or just curious, we can explain your options and what to expect.
Finding a reliable cash house buyer can be difficult, and it’s essential to note the speed of their response and their online reputation. At Mortgage Broker Store we take pride in our speed and online reputation for our mortgage and cash purchasing services. You can contact us for an overview of your options and a serious cash offer on your property within 24 hours.