How To Find Credible Cash Home Buyers in Baltimore

Inside the Baltimore cash home buyers market

Baltimore’s cash home-buying market is largely driven by real estate investors, but other groups may be interested in purchasing your condo mortgage-free. Let’s explore the various types of cash buyers in Baltimore and what motivates them.

New residents

Although Baltimore’s population declined in 2023 — falling 0.7% to 565,239 residents — those who are moving to Charm City often come for job opportunities or the lower cost of living. Baltimore’s unemployment rate currently stands at 2.9%, well below the national average of 3.9%.

The city’s main industries include government, education, healthcare, manufacturing, and financial services. You’ll find major employers like Johns Hopkins University, Exelon, Under Armour, Marriott International, and Morgan Stanley.

High-earners and employees relocating from more expensive cities and states may have the financial means to purchase homes in Baltimore outright. They are typically looking for properties that offer a good balance of affordability and neighborhood amenities. Cash purchases become a convenient and attractive option for these newcomers as they seek to settle into their new lives quickly.

Baby Boomers

Adults over 65 account for approximately 16% of Baltimore City’s population. Baby Boomers, who were born between 1946 and 1964, are drawn to Baltimore because of its affordability, access to health care, and abundance of restaurants and entertainment options. With significant savings built up from equity and investments, many of these mature buyers are opting to pay for homes without mortgages.

Nationwide, 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). If your property touts features that appeal to older buyers — like a first-floor primary suite, low-maintenance outdoor space, or wide doorways and hallways — highlighting them in your listing description can help attract Baby Boomers willing to pay cash.

Property investors

Homeowners in Baltimore are more likely to succeed in selling to property investors than traditional buyers who can pay in cash. Property investors, such as institutional buyers, house flippers, buy-and-hold investors, wholesale investors, and iBuyers, are often more prepared and motivated to close quickly.

Baltimore has a high proportion of real estate investor purchases. In the first quarter of 2024, the share of purchased homes bought by investors amounted to 19.7%. Although investment activity declined 22% year-over-year, Baltimore remains an attractive market for investors thanks to its consistent rental demand and quality tenants. These investors are looking for properties that can be quickly renovated, rented out, or sold at a higher price, and often prefer to pay in cash to avoid contingencies and ensure a shorter closing process.

Pros of working with a Baltimore cash home buyer

Accepting a cash offer on your home presents a streamlined sales process with specific benefits. Let’s explore some of these advantages in more detail:

How to request a cash offer in Baltimore

If you want a straightforward way to get a cash offer for your home, HomeLight’s Simple Sale platform is an excellent option. It connects you with a large network of vetted and pre-approved investors across the U.S. By answering a few basic questions about your home, you can receive a no-obligation, all-cash offer within 24 hours. If you accept the offer, the sale can close in as few as 10 days. This process eliminates the need for repairs, staging, and multiple showings, and allows you to select a move-out date that fits your schedule — up to 30 days from closing.

Keep in mind that cash buyers generally offer less than what you might achieve on the open market. However, traditional sales come with fees that can eat up 9% to 10% of your sale price. So, depending on your situation, selling to a cash buyer might still be a cost-effective choice.

How much are Baltimore cash home buyers willing to pay?

Cash home buyers often pay below market value in exchange for the speed and convenience of the transaction. In house flipping, the 70% rule is a common guideline, where investors aim to pay no more than 70% of a home’s after-repair value, minus repair costs. This helps guarantee that they can make a profit after renovations and resale.

The competitiveness of Baltimore’s housing market affects cash offers. When the market is hot, with high demand and limited inventory, cash offers might be closer to market value. However, in a slower market, cash offers are generally lower as buyers factor in the increased risk and potential for longer holding times. Understanding these dynamics can help you set realistic expectations when considering cash offers for your home.

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

You may want to consider a cash home sale if speed and a streamlined process are your top priorities. Here’s a typical breakdown of the steps involved:

Complete the Maryland Residential Property Disclosure

When selling a home in Maryland, you are required to complete the Maryland Residential Property Disclosure and Disclaimer Statement. This document requires you to disclose any known material defects in the property. Maryland is not a caveat emptor state, meaning sellers must disclose issues that could affect the property’s value or desirability.

If you’re working with a Balitmore “We Buy Houses” company, they will likely prepare all the necessary documents for you, including this one. However, you can speed up the paperwork process by filling it out ahead of time. These companies conduct their own inspections and purchase homes in any condition, so filing the disclosure statement is more of a legal obligation from their perspective.

The buyer runs a title search on the property

The cash buyer will also verify the property’s title. This ensures you have legal ownership and checks for any liens or claims that could prevent a smooth sale. Some of the most common reasons for title issues include boundary disputes, unknown easements, undisclosed heirs, public record errors, and forgery.

The seller pays any associated fees

A cash sale typically has fewer closing costs than a traditional home sale, but sellers may still have to pay some costs, such as transfer taxes, title insurance, escrow fees, and attorney fees.

In Maryland, transfer taxes are the responsibility of both the buyer and the seller. The state tax is levied at a rate of 0.5% of the home’s purchase price. For first-time buyers purchasing a primary residence, the tax rate is reduce to 0.25%. Baltimore County also charges a transfer tax amounting to 1.5% of the home’s purchase price.

If you’re looking to avoid closing costs altogether, “We Buy Houses” companies will often pay them for you in exchange for an offer that’s below market value.

Deciding to sell to Baltimore cash home buyers

Due to Baltimore’s popularity with real estate investors, cash purchases are a viable choice for homeowners looking to sell quickly. HomeLight can connect you with resources to navigate the process, whether you choose to find a buyer yourself, use a local real estate agent, or secure a no-obligation cash offer from Simple Sale. Our goal is to simplify your selling experience by leveraging Baltimore’s active investor market to find a quick and efficient solution for your home-selling needs.

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