A Seller’s Guide to Cash Home Buyers in Kansas City

Inside the Kansas City cash home buyers market

Cash buyers fuel the Kansas City home market, but they’re not all real estate investors. Let’s explore the different types of cash buyers and what drives them:

New residents

Kansas City attracts new residents seeking affordable housing and a laid-back urban lifestyle. In 2023, the Kansas City metropolitan area added over 12,500 new residents, according to U.S. Census Bureau data. This represented a 0.57% growth rate, which was noticeably higher than the 2022 and 2021 readings (0.25% and 0.37%, respectively).

This influx of new residents often includes remote workers and those looking for a lower cost of living. Some of these newcomers, especially those relocating from more expensive cities or states, have substantial cash reserves from selling their previous homes. These buyers may be willing to make competitive cash offers, simplifying the selling process for homeowners.

Baby Boomers

Residents aged 65 and over make up about 16% of Kansas City’s population. While some retirees choose to leave the state due to high property taxes, others are drawn to Kansas City for its lower cost of living, revived downtown, and quick access to the airport.

Flush with cash, mature buyers are increasingly paying for their 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 Kansas City house has features that appeal to the Baby Boomer generation, like a first-floor primary suite, low-maintenance outdoor space, or wide doorways and hallways, highlight them in the listing description to capture the attention of older buyers willing to pay cash.

Property investors

Homeowners in Kansas City are likely to find success selling to property investors rather than traditional buyers equipped with cash. Common types of property investors include institutional buyers, house flippers, buy-and-hold investors, wholesale investors, and iBuyers.

Kansas City has a high proportion of large institutional investors, many of whom are in the market for single-family homes they can turn into long-term rental properties. According to a 2023 study by the Mid-America Regional Council (MARC), large investors own approximately 14,000 houses across the Kansas City region.

Real estate investor purchases are primarily driven by the city’s relatively affordable home prices and strong rental market. Many of these investors are prepared to make quick, cash offers, resulting in a smoother and more predictable home-selling process.

Pros of working with a Kansas City cash home buyer

Cash home buyers might be the answer to a fast and hassle-free home sale. Let’s break down the key advantages of working with them:

How to request a cash offer in Kansas City

For Kansas City homeowners seeking a quick and hassle-free sale, HomeLight’s Simple Sale platform is an excellent option. This service connects you with the largest network of vetted and pre-approved investors in the country. Simply provide some basic information about your home, and you’ll receive a no-obligation, all-cash offer within 24 hours. If you accept, you can close the sale in as few as 10 days. This allows you to skip expensive repairs, professional staging, and multiple showings. Plus, you can choose a move-out date up to 30 days from closing.

It’s important to note that cash buyers typically offer less than what you might fetch by selling on the open market with a real estate agent. However, traditional sales involve fees that can total 9% to 10% of your sale price. Depending on your circumstances, opting for a cash sale might still offer significant savings and convenience.

How much are Kansas City cash home buyers willing to pay?

In exchange for speed and convenience, cash home buyers often present offers that are below market value. One common approach used by house flippers is the 70% rule, which means they offer 70% of the home’s after-repair value minus the cost of repairs. This ensures that they’ll turn a profit when it comes time to resell the house.

The competitiveness of the Kansas City housing market can influence how close cash offers are to market value. When the market is hot, cash offers might come closer to market value due to increased demand. In a slower market, cash offers tend to be significantly lower as buyers anticipate longer holding times and more risk. Understanding current market conditions can help you set realistic expectations about the cash offers you’re likely to receive.

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

If you’re looking to sell your home fast and with minimal hassle, a cash home sale could be the ideal solution. Here’s a quick breakdown of the typical steps involved:

Complete the Missouri Seller’s Disclosure Statement for Residential Property

In Kansas City, sellers are required to complete the Seller’s Disclosure Statement for Residential Property. This document outlines any known issues with the property, including structural defects, plumbing problems, and environmental hazards. The goal is to inform potential buyers about the property’s condition, ensuring transparency.

If you’re working with a Kansas City “We Buy Houses” company, they will likely prepare all the necessary documents for you, including the disclosure statement. 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 delay the sale. Some common reasons for title issues include boundary disputes, unknown easements, undisclosed heirs, public record errors, and forgery. Getting property title issues cleared up beforehand keeps the closing smooth and avoids any last-minute hang-ups.

The seller pays any associated fees

While a cash sale typically involves fewer closing costs than a traditional home sale, sellers may still be on the hook for some expenses, like title insurance, escrow fees, and attorney fees. Fortunately for Kansas City sellers, the state of Missouri does not impose a real estate transfer tax. If you’re looking to avoid closing costs altogether, “We Buy Houses” companies often pay them for you in exchange for an offer that’s below market value.

Deciding to sell to Kansas City cash home buyers

Homeowners have a strong chance of selling for cash, as Kansas City remains a hot market for real estate investors. Whether you choose to compare cash buyers on your own, work with a local real estate agent, or request an offer from Simple Sale, HomeLight can connect you with top professionals and valuable resources. We’re dedicated to helping you streamline your selling experience, taking advantage of Kansas City’s investor-rich market to find a fast and efficient solution for your home sale needs.

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