The Complete Guide to Working with Cash Home Buyers in Arkansas

Inside the Arkansas cash home buyers market

Arkansas’s cash home-buying market attracts a diverse range of buyers, from corporate investors to individuals looking for a straightforward purchase without a mortgage. Here’s a breakdown of the key players who are typically ready to pay cash for homes across the state.

New residents

Arkansas’s affordability, scenic beauty, and growing job opportunities are increasingly attracting new residents from pricier states. Northwest Arkansas (NWA), specifically Fayetteville and Huntsville, placed fourteenth and sixteenth, respectively, in U.S. News’ 2024 ranking of the Fastest-Growing Places in the U.S. The region’s population surged 47% between 2003 and 2023 to an estimated 576,000 residents.

Newcomers to Arkansas are often looking to quickly establish roots and may prefer the simplicity of a cash sale. Some are high-net-worth individuals relocating for a new job opportunity, while others are former residents of more expensive states looking to leverage their previous home’s equity. If you’re selling a property in one of the state’s booming metropolitan areas, you could potentially secure a cash offer with a faster closing.

Baby Boomers

According to 2020 U.S. Census data, Baby Boomers (aged 65 and older) make up about 18% of Arkansas’s population. Members of this generational cohort have been significant players in the all-cash home buying market. Flush with home equity or funds from decades of saving and investing, many Boomers prefer to purchase properties outright to avoid the financial constraints of a mortgage during retirement.

Across the country, more than half (51%) of Older Boomers (born 1946–1954) paid all cash for home purchases they made in 2023, as did 32% of Younger Boomers (born 1955–1964). Properties in Arkansas that cater to the needs of Baby Boomers — such as homes with minimal stairs, accessible features, and in proximity to healthcare facilities — may garner more attention from this cash-rich demographic.

Property investors

Property investors, including institutional investors, house flippers, buy-and-hold investors, and iBuyers, have a significant presence in the Arkansas real estate market. These investors are typically interested in properties that are priced well or have the potential to generate strong rental returns.

An analysis of CoreLogic data by Skift revealed a steady rise in the investor share of Arkansas home purchases over the past five years. Investor activity in the state jumped from 17.75% in 2019 to 27.37% in 2023. Homeowners looking to sell quickly may find success by targeting this group of buyers, as they often prefer to close deals quickly to take advantage of current market conditions and rental opportunities.

Pros of working with an Arkansas cash home buyer

Cash offers can be an attractive option for Arkansas homeowners seeking an efficient and streamlined sales process. Let’s explore the key benefits of working with a cash home buyer in the Natural State:

How to request a cash offer in Arkansas

If you’re looking for a straightforward way to get a cash offer for your home, HomeLight’s Simple Sale platform might be the solution you need. We’ll connect you with the largest network of pre-screened cash buyers across the U.S. to get a competitive offer for your home.

After you answer a few initial questions about your property, we’ll present you with a no-obligation cash offer within 24 hours. If you decide to move forward, you could close on your home in as few as 10 days, bypassing the usual hassles of repairs, staging, and contrast showings. Plus, you’ll have the flexibility to choose a move-out date that fits your schedule, up to 30 days post-closing.

It’s important to note, however, that cash buyers generally offer less than what you might achieve on the open market through a traditional sale. While selling on the open market can attract higher offers, it also incurs fees that can consume about 9% to 10% of your sale price. Depending on your circumstances, accepting a lower cash offer might still be to your benefit, especially when considering the speed and ease of the transaction.

How much are Arkansas cash home buyers willing to pay?

When selling to cash home buyers, it’s common to receive an offer that is below what your home might fetch on the open market. This trade-off for speed and convenience means that sellers often accept a reduced price. Many cash buyers, particularly house flippers, adhere to the 70% rule, which advises against paying more than 70% of the after-repair-value (or “ARV”) of a property, minus the costs of any needed repairs. This ensures that the investor can make a profit when they resell the property.

The competitiveness of Arkansas’s housing market can influence how close cash offers come to market value. During a hot market, cash buyers might extend offers that are closer to market value to win over sellers in a competitive environment. In a slower market, offers from cash buyers are likely to be lower, reflecting reduced demand and higher risk. Understanding these dynamics can help sellers set realistic expectations about the dollar amounts of offers they might receive.

What’s the process of selling to an Arkansas cash home buyer?

If you’re prioritizing speed and simplicity in your home sale, choosing a cash offer might suit your needs perfectly. Here’s an overview of the steps typically involved in this process:

Complete the optional Residential Property Disclosure form

While Arkansas doesn’t mandate seller disclosures — it’s what’s known as a caveat emptor or “buyer beware” state — the Residential Property Disclosure form is commonly used. This form encourages sellers to reveal known property issues and conditions. By completing it, sellers can promote transparency and potentially reduce the risk of disputes arising from undisclosed problems later.

If you’re selling to an Arkansas “We Buy Houses” company, they’ll generally prepare all of the necessary documents for you, including this one. However, completing the form ahead of time can speed up the paperwork process. These companies usually conduct their own inspections and are willing to purchase homes in any condition, making the disclosure more about fulfilling legal obligations than influencing the sale.

The buyer runs a title search on the property

The cash buyer will conduct a title search to verify the property’s legal ownership and check for any potential problems such as liens or claims that could complicate the sale.

Unforeseen issues can sometimes surface, such as boundary disputes, undisclosed heirs, or even mistakes in public records. A clear title is essential for the legality and peace of mind for both parties involved.

The seller pays any associated fees

Although a cash sale typically involves fewer closing costs than a traditional sale, the seller may still be responsible for certain expenses, such as transfer taxes, title insurance, and escrow fees. In Arkansas, the seller pays the Real Property Transfer Tax, which levied at a rate of $3.30 per $1,000 of the home’s sale price.

If you’re looking to avoid closing costs altogether, many “We Buy Houses” companies cover these costs in exchange for a purchase price that’s below market value. This can be a significant financial benefit if minimizing out-of-pocket expenses is a top priority for you.

Deciding to sell to Arkansas cash home buyers

Homeowners in Arkansas stand a solid chance of securing a cash deal, thanks to the state’s popularity among real estate investors. Whether you choose to evaluate cash buyers on your own, collaborate with a local real estate agent, or opt for an offer via Simple Sale, HomeLight is ready to assist. We’re here to simplify your selling journey, tapping into Arkansas’s active investor market to help you achieve a quick, straightforward home sale. Let us connect you with leading professionals and valuable resources to enhance your selling experience.

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