5 Benefits of Selling a Home for Cash in Southern California

Southern California remains one of the most desirable places to live in the U.S., as well as one of the most expensive. This is evidenced by the housing market in California being ranked as the 3rd most expensive in the nation with SoCal having the most impact. While high housing prices and demand may cause homeowners to assume selling their homes will be easy and profitable, is this really the case?

Ultimately, the answer to this important question will depend on the specific variables involved, yet, in general, selling a house the traditional way is never easy, especially in SoCal. The good news is there are viable alternatives for selling a home the traditional way. In an effort to explain, let's examine 5 benefits of selling a home for cash in Southern California.

1. Declining SoCal Real Estate Market:

The real estate market in Southern California saw a decline in 2018 from the year before, as a 2018 article found at CNBC explains:

Southern California home sales hit the brakes in June, falling to the lowest reading for the month in four years. Sales of both new and existing houses and condominiums dropped 11.8 percent year over year, as prices shot up to a record high, according to CoreLogic.

While significant, this decline is the natural result from years of rising housing prices since the 2008 recession. Regardless, median home listing prices in SoCal are still high at $525,000 and the market is projected to rebound in the near future.

Although SoCal is still a great place to sell a home, the pendulum has swung towards a buyer's market. This means selling a home the traditional way will take longer and be less profitable, making the sell for cash option that much more appealing for homeowners.

2. Sell the Home Quickly As Is:

Homeowners might be in a position where selling their home quickly is a priority. In this case, selling the home for cash as is would be the best option. Instead of going through the traditional home selling process and waiting months, homeowners can sell their home for cash as is, typically, within weeks.

With traditional home selling processes, the typical two months it takes to sell a home in California doesn't account for the time before the house is listed. Basically, it takes additional time to get a home ready to be listed, including the time it takes for repairs, inspections, finding a real estate agent, cleaning, dealing with any tenants, and staging the home. If this time is included in the traditional home selling process, homeowners can expect to spend 4 to 6 months to sell their house.

3. Avoid the Entire Traditional Home Selling Process:

Despite what biased real estate agents and mortgage companies may tell homeowners, selling a home the traditional way isn't a simple process. In reality, it's a tedious journey full of paperwork and stress (unless homeowners can afford to hire a property management team). Essentially, homeowners must ask themselves if the potential profit is worth the time and effort it takes.

The old adage "time is money" must be considered when selling a home the traditional way, as it will take a considerable amount of time and effort to accomplish. From talking with real estate agents, conducting open houses, coordinating with inspectors and contractors, having meetings with mortgage loan officers, filling out online forms and paperwork, dealing with escrow, communicating with buyers, and more, homeowners will have their hands full throughout the process.

On the other hand, homeowners can avoid the entire traditional home selling process by selling their homes for cash as is. This method drastically shortens the time and effort needed to sell a home while still giving homeowners an acceptable cash offer.

4. Upfront Costs: Repairs are Expensive in S. California:

Having the upfront money for repairs is another challenge for homeowners, especially, in Southern California where the cost of living is so high. According to bestplaces.net, California has a cost of living index of 168.6 with the U.S. average at 100.

Most existing homes need at least a makeover for curb appeal, yet many also need repairs and upgrades for appraisals and inspections. Common home repairs and upgrades include:

roof replacement
new carpet
painting
water heater
appliances
landscaping
energy efficient windows
repaving driveways
structural repairs

The total amount spent from repairs and upgrades could easily reach into the tens of thousands and even hundreds of thousands of dollars for sellers, just to get their homes up to code and ready for buyers. For homeowners who don't have the money or don't want to deal with the hassle, selling as is for cash is the ideal alternative.

5. Good Cash Offer Without the Hassle:

There are both individual real estate investors and real estate investment companies that specialize in giving cash offers for homes; the quality of their services and the amount they can offer will widely vary. Suffice it to say, working with a quality service will make a huge difference with both.

When working with a quality service, homeowners may be surprised at the cash offer they receive and how easy the process was. Taking into consideration the other benefits of selling a home for cash as is in SoCal, a good cash offer without the hassle may be the perfect alternative to the traditional home selling process.

Conclusion

With higher than average home prices and strong demand, Southern California's real estate market offers both opportunities and challenges for homeowners looking to sell their homes. For many, this means selling their homes through traditional methods and trying to make a profit, yet for others, it means selling their homes as is for cash.

While both options have their benefits, selling a home for cash allows homeowners to bypass complications from SoCal's recent housing decline, sell their homes quickly, avoid lengthy traditional home selling processes, bypass expensive repairs and maintenance issues, and get a good cash offer without the hassle. Whether selling for cash is the only option or the preferred one, it is by far the easiest way to sell a home.

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