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What is the difference between a Cash Buyer and a Traditional Buyer?

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CASH VS. Traditional Home Sale – Contractual Terms Comparison:




7 – 21 Days (MAYBE SOONER)

30 – 45 Days









6% of the Sale Price

CLOSING COSTS (Title, escrow, doc prep, etc.)


1% – 2 % of Sale Price



Typically, 1% – 2 % of Sale Price

Does the buyer live in the house?




A buyer who is using all cash to purchase a piece of real estate has much more flexibility with their spending compared to a buyer who is using any other form of financing to purchase the property, such as the Traditional buyer who will most likely use a conventional form of financing.

Investors DO NOT live in the property. The sole purpose of buying the property for cash buyers is to repair the property and either resale it on the market or to rent it out. The cash buyer is typically an expert in their field, so they do not need to pay a realtor to represent them. Since the homeowner is not represented by a realtor, that is why there are no realtor fees or junk commissions deducted from the sales price at closing. An offer from a cash buyer is typically what you net, before paying off the mortgage, considering the cash buyer offers to pay all closing costs associated with the sale. Time is of the essence for these buyers and they can typically close within 7 – 21 days, creating flexibility for the homeowner. THIS COULD SAVE YOU THOUSANDS OF DOLLARS AND A LOT OF TIME.


The traditional method of purchasing real estate typically requires a conventional form of financing, usually from a local bank, to provide a loan to the home buyer so they can afford to purchase the property. Since the bank, in this case, is taking a risk by lending the money to the homeowners, they require strict inspections, appraisals, and a survey before they will approve the loan. This can take a long time. That is why it usually takes longer than 5 or 6 weeks for the bank to do their due diligence and approve the loan to the home buyer. The main purpose of purchasing the property for a traditional buyer is to live in it. Traditional home buyers typically aren’t experts in the field of real estate and hire a realtor to represent their best interest in finding a property to live in and to negotiate the price. This automatically creates a fee that needs to be paid. Typically, the realtor will require a 3% commission, whether they are the listing agent representing the seller or the buyer’s agent representing the buyer. Since there is usually a listing agent representing the seller in the traditional sale so they can market the property on the MLS to create exposure, another 3% commission must be paid. THAT’S 6% JUST TO PAY THE AGENTS. Whether the buyer or the seller has to assume the cost, it still makes it tougher on both sides of the transaction to eventually agree to terms and price. With properties that are sold as-is, a selling price may be agreed upon, but after the buyer and the buyer’s lender conduct more due diligence, they will find deficiencies with the property that isn’t up to market standard and require the seller to offer a concession to the sales price to account for what needs to be repaired. CONSIDERING CONCESSIONS AND REALTOR FEES, YOU AREN’T MAKING AS MUCH MONEY AT THE END OF THE DAY.

Sell my home as-is, sure, but where will I move to?

How long after selling my current home does it take to repurchase my next home?

Great question:

Frequently, homeowners are overwhelmed with the idea of selling their current home, which they may know would not sell for full market value due to it being lived in, outdated, or even completely run down.

How can this fear be dealt with?

The homeowner needs to come to terms with who would be the most interested in their current property. Similarly, to what was discussed in a previous post “What is a fair cash offer for my home?” it briefly mentions different scenarios for different types of buyers with various forms of financing.

Essentially, a home that needs repairs in terms of foundation, electrical wiring, Roof, HVAC, etc or just needs overall updates to meet 2019 standards, would probably best be sold to an investor. Likewise, a home that has great structural integrity is relatively updated to current standards, and wouldn’t need much work to bring it up to the full potential value, would best be sold to an end buyer who is most likely looking to live in the home, who uses a conventional form of financing.


It has everything to do with it.

Depending on the type of buyer, investor or end buyer determines the timeline and fluidity of your property being purchased. This comes from the purpose for which the home will be used after you sell it and the type of financing needed to fund the purchase of your home.


A local real estate investor may have the capabilities to help you find your next home BEFORE your current property is sold. The flexibility of the real estate investor may work with you on your goals and when you would like to have the home sold. If it takes roughly 30-45 days to be able to get qualified for a new loan from your bank, receive a payoff statement, and find a new property to purchase, the investor can flexibly arrange the close date of your current home the SAME DAY or a few days BEFORE the close or rental of your next home.


This will allow the homeowner to have the flexibility and ease of mind knowing exactly how much they will receive from the current home and exactly how much the purchase of the next home will be and how much in proceeds the homeowner will be able to put in their pocket after all is said and done. SOUNDS SIMPLE.

With a conventional home buyer, they are primarily looking for a home to live in themselves. That being said, if you as a homeowner NEED your property closed and sold within 10-20 days or less, then the end buyer most likely would not be able to close on the property in time due to the typical 30-45 day due diligence period the conventional lender would need to approve the loan. If the property is structurally damaged, too close to commercial buildings, or has any negative selling factors, this will negatively affect the appraisal report the appraiser will send to the lender. This can cause a lot of problems and headaches, especially if the property doesn’t end up closing or the buyer asks for a reduction.

Ultimately, it is very important to consult your local real estate investor and let them know your situation and goals ENTIRELY. The investor will most likely understand the homeowner’s current situation better and would be more likely to be able to provide assistance in terms of:

– Flexible Close Date (Close as soon as 7 days, or later depending on the needs of the homeowner)

– Assistance with moving

– No realtor fees

– No closing costs

Circling back to the question at hand, how long to repurchase my next home after selling my current home, a real estate investor can accommodate your needs whether that be the need for a very quick sale to avoid paying a double mortgage if you already purchased your next home or contrarily if you have not found your next home and would need a longer period to sell the current home and find your next one, both can be done, with the same ease and peace of mind of meeting the goals of the homeowner.

Currently, Savvi Buys Houses, is working with a homeowner who decided to sell their as-is home in Grapevine, TX and move to Anna, TX to be closer to family. Savvi Buys Houses was able to facilitate the purchase of their current home and arrange the closing date with a 1 week leaseback to be able to pay the homeowners the proceeds for the sale of the current home and have 1 week to be able to move their belongings into their home in Anna, TX which was purchased with the proceeds of their current home just a few days after their current property was closed. EVERYONE INVOLVED WAS EXTREMELY HAPPY WITH THE TRANSACTIONS AND EVERYONE’S GOALS WERE MET.

The Takeaway:

The point is that no matter how daunting selling your as-is home can be, if you work with the right real estate investor in your area and you’re open and transparent about your goals and needs as a homeowner, then coordinating the purchase of your next home in conjunction with the sale of your current home can be done quickly and smoothly.

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