Cash offers are based on a variety of factors, including comparable sales, needed repairs, the property’s neighborhood, and the size of your mortgage. The bottom line, however, is that the offer will be less than your home’s fair market value. Generally speaking, iBuyers will be closer to 98% of your home’s value, but shadier cash buyers will be much less. Homeowners who sell their homes for cash are often in foreclosure or have homes that need repairs they can’t afford. Since cash buyers aren’t required to be licensed like real estate agents, the space is crowded with bad-faith negotiators who take advantage of homeowners desperately in need of short-term cash.

Source: The Nation March 16, 2021 15:04 UTC