Cash Home Buyers in Chicago: Sell Your House Quickly and Easily

Inside the Chicago cash home buyers market

Chicago’s cash home-buying market is not just driven by real estate investors; diverse groups are stepping in to purchase properties mortgage-free. Let’s dive into who these buyers are and what drives their decisions.

New residents

Thanks to its cultural vibrancy and strong economic opportunities, Chicago is a popular destination for newcomers from across the country and beyond. New residents are particularly drawn to neighborhoods with robust job markets, good schools, and well-connected public transport. Areas like Lincoln Park and The Loop have become very popular for new residents settling in Chicago.

The Loop — bordered by the Chicago River to the north and west, Lake Michigan to the east, and Roosevelt Road to the south — is the fastest growing residential downtown in the country. Between 2010 and 2022, the neighborhood gained nearly 17,000 new residents, and the population currently stands at more than 46,000 people.

On the whole, Cook County lost residents again in 2023, but the rate of decline has slowed since 2020. Compared to other large metropolitan areas like New York and Los Angeles, Chicago benefits from relatively low home prices, which is enticing to newcomers and investors alike. If your property is close to a commercial center or located in a trendy neighborhood, you may have a better chance of netting a cash buyer.

Baby Boomers

Baby Boomers make up about 16% of the population of the Chicago metropolitan area. Nationwide, a significant portion of cash home sales comes from the Baby Boomer generation. In 2023, more than half of Older Boomers (aged 68–76) bought homes entirely with cash, as did 32% of Younger Boomers (aged 58–67)

Chicago’s own market reflects this trend, with mature buyers choosing cash transactions for the convenience, speed, and financial flexibility they offer. Properties that cater to their needs — such as homes with minimal stairs, easy maintenance, and accessible healthcare facilities — are particularly attractive to this demographic.

Property investors

Homeowners in Chicago are finding that selling to property investors can often be more straightforward than finding traditional buyers who pay in cash. This group includes institutional buyers, house flippers, buy-and-hold investors, wholesale investors, and iBuyers, who are typically looking for properties they can turn over quickly for a profit or rent out for steady income.

According to ATTOM, a leading provider of property and real estate data, Chicago’s home flipping rate was 5.5% in the third quarter of 2023. That’s a substantial 21% year-over-year increase. Nearly two-thirds (68.5%) of houses flipped in Chicago during that period were bought outright with cash by investors. The median price paid by investors was $179,640, and the median resale value was $275,000.

Sellers seeking a cash offer can contact “We Buy Houses” companies directly, as many of them are house flippers or buy-and-hold investors. Posting on a forum like BiggerPockets may also help you connect with a cash buyer, or you could enlist an investor-friendly real estate agent to pitch your property to their network.

Pros of working with a Chicago cash home buyer

Cash offers can be an attractive option for Chicago homeowners seeking a quick and straightforward sales process. Here are the primary advantages of working with a cash home buyer in the Windy City:

• Quick closings: Cash transactions often close much faster than those involving traditional financing. Without the need for mortgage approvals and bank appraisals, you can move from offer to closing in as little as a week.
• No contingencies: Cash buyers typically purchase homes without the need for contingencies, such as financing or home inspection conditions. This reduces the risk of deals falling through and can streamline the entire sale process.
• As-is purchase: Selling your home as-is means you won’t have to worry about repairs or renovations before closing. Cash buyers often prefer to buy properties in their current condition, saving you time and money on pre-sale home improvements.
• Simplified process: With fewer parties involved, selling to a cash buyer significantly reduces the amount of paperwork and complexity. This simplification can make the entire sale less stressful and more manageable.
• No appraisal needed: Since cash buyers don’t require a mortgage, there’s no need for an appraisal, which can be a relief if you’re concerned about your home valuing lower than expected.

How to request a cash offer in Chicago

If you’re seeking a simpler way to receive a cash offer for your home, HomeLight’s Simple Sale platform offers a seamless solution. This service connects you to the largest network of vetted and pre-approved investors across the U.S., ensuring a trustworthy and efficient sales process. Once you provide some basic information about your property, you can expect a no-obligation, all-cash offer within just 24 hours.

Accepting this offer could see you closing the sale in as little as 10 days, allowing you to bypass the usual hassles of repairs, prep work, and numerous showings. Additionally, the platform provides the flexibility to choose a move-out date up to 30 days after closing.

However, it’s important to note that cash buyers typically offer less than the potential selling price on the open market. While selling traditionally may yield a higher sale price, associated fees and commissions can absorb 9% to 10% of your sale price. Depending on your situation, the convenience and speed of a cash sale might still be a more favorable option.

How much are Chicago cash home buyers willing to pay?

When it comes to cash home sales, convenience and speed often come at a cost, with sellers typically receiving less than the market value of their home. This is largely due to the 70% rule commonly used in house flipping, where buyers pay only 70% of the after-repair value of the home minus any repair costs. This formula ensures that they can make a profit upon reselling the property.

The competitiveness of Chicago’s housing market significantly influences cash offers. In a hot market, cash buyers are more likely to pay prices that are closer to market value to get their offers accepted. Conversely, in a slower market, cash offers tend to be below market value, reflecting the decreased demand and greater buying leverage. Sellers should weigh these dynamics when considering a cash sale, as the current market condition can greatly affect the fairness of the offer received.

What’s the process of selling to a Chicago cash home buyer?

If you’re seeking speed and simplicity in your home sale, a cash transaction may be the ideal solution. Here’s a quick guide to understanding the typical process involved in a cash home sale:

Complete the Illinois Residential Real Property Disclosure Report

When selling your home in Illinois, you are required to complete the Illinois Residential Real Property Disclosure Report. This document mandates sellers to disclose specific known issues with the property, ranging from structural problems to environmental hazards. Understanding and complying with these mandated disclosure laws is crucial to ensure a transparent transaction.

If you’re working with a Chicago “We Buy Houses” company, they often prepare the necessary paperwork, including this disclosure report. However, completing it in advance can speed up the sale. These companies usually conduct their own inspections and purchase homes in any condition, viewing the disclosure as more of a legal formality than a dealbreaker.

The buyer runs a title search on the property

The cash buyer will conduct a title search to confirm your legal ownership and to uncover any liens, claims, or encumbrances that might delay the sale. This crucial step ensures there are no issues such as boundary disputes, unknown easements, undisclosed heirs, public record errors, or potential forgeries which could complicate or invalidate the sale. Understanding the property title is essential for both parties to ensure a clear transfer of ownership.

The seller pays any associated fees

Although a cash sale typically incurs fewer closing costs than a traditional sale, there are still expenses that sellers must cover. In Illinois, for instance, sellers are responsible for costs like transfer taxes, which are governed by state and local rates. Illinois’ transfer tax, sometimes referred to as the Documentary Stamp Tax, is an expense sellers need to account for. Some municipalities in Illinois charge their own transfer tax or a transfer fee, and all counties impose a transfer tax at the rate of 50 cents per thousand dollars of the sale price. You can read more about transfer taxes in Illinois here.

If you’re aiming to minimize or eliminate closing costs, “We Buy Houses” companies often cover them, albeit in exchange for a purchase price that’s below market value.

Deciding to sell to Chicago cash home buyers

Homeowners in Chicago stand a solid chance of securing a cash sale, given the city’s appeal as a robust real estate investment destination. In Chicago’s investor-friendly market, HomeLight can help you sell your home quickly, whether you choose to compare cash offers yourself, leverage our network of top agents, or explore a fast cash offer through Simple Sale.

Header Image Source: (Unsplash / Leo Heisenberg)