Top Tips for Finding Trustworthy Cash Home Buyers in Maryland

Inside the Maryland cash home buyers market

While real estate investors dominate Maryland’s cash home-buying market, there are plenty of affluent individuals who may be willing to make an offer on your home. Maryland is the second wealthiest state in the country, after all. Let’s explore these alternative cash buyers and their motivations:

New residents

Maryland’s population increased by 0.26% in 2023, according to data from the U.S. Census Bureau. In total, 22 counties reported positive gains, led by Frederick County, which grew by 7.55%. The state touts a relatively affordable median home price compared to others on the East Coast, and offers proximity to Washington, D.C., making it a popular home base among commuters.

Some of these newcomers are cash buyers, whether they be high-net-worth individuals or out-of-staters with significant home equity. These buyers are typically looking for affordable housing options that provide good value for their money. They are attracted to Maryland’s diverse neighborhoods, educational opportunities, and connection to the capital. In Maryland’s growing regions, sellers may be able to attract motivated buyers willing to pay cash for the right property.

Baby Boomers

Many Baby Boomers are now buying homes without mortgages, leveraging their significant home equity and long-term savings. Approximately 17% of Maryland’s population is aged 65 and older, giving homeowners a decent chance of netting a cash-flush older buyer.

Nationwide, over half of Older Boomers (born 1946–1954) and 32% of Younger Boomers (born 1955–1964) paid all cash for their homes in 2023. If your Maryland home has any features that appeal to this generation — like a first-floor primary suite, low-maintenance outdoor space, or curbless shower — be sure to highlight them in your listing description to attract Baby Boomers who may be willing to pay in cash.

Property investors

Selling to property investors can often be more straightforward than dealing with traditional buyers. Various types of property investors, such as institutional buyers, house flippers, buy-and-hold investors, wholesale investors, and iBuyers, are active in the Maryland real estate market.

In Baltimore, for example, home flipping is a profitable business. According to ATTOM, a leading real estate data provider, Baltimore ranked third in the nation for gross profit margin in their 2023 U.S. Home Flipping Report, posting a margin of 75.5%.

Because of Maryland’s proximity to Washington, D.C., abundance of colleges and universities, and relatively high home prices, rental demand is consistently strong. Homeowners can benefit from targeting these cash-rich buyers who are always on the lookout for their next investment.

Pros of working with a Maryland cash home buyer

For Maryland homeowners seeking a quick and efficient sale, cash offers present a desirable alternative. Ahead, we’ll explore the key benefits of working with a cash home buyer:

How to request a cash offer in Maryland

If you’re seeking an easier way to secure a cash offer for your home, HomeLight’s Simple Sale platform is a great option. This platform connects you with the largest network of vetted and pre-approved investors in the U.S. By answering a few basic questions about your property, 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, allowing you to skip repairs, prep work, and the hassle of showings. You also have the flexibility to choose a move-out date that suits your schedule, up to 30 days from closing.

However, it’s important to note that cash buyers typically offer less than what you might get on the open market. While the convenience is unmatched, these offers are often lower because investors factor in the quick sale and as-is condition of the home. However, selling the traditional way comes with fees that can consume 9% to 10% of your sale price, so a cash buyer might still save you money in the long run depending on your circumstances.

How much are Maryland cash home buyers willing to pay?

When selling to cash home buyers, it’s important to understand that you’ll often receive offers that are below market value. This trade-off comes in exchange for the speed and convenience of the transaction. A common guideline in house flipping is the 70% rule, which means investors typically offer 70% of the home’s after-repair value minus repair costs. This ensures they can make a profit after renovations and reselling the property.

The competitiveness of Maryland’s housing market can affect these offers. When the market is hot, cash offers may be closer to market value due to higher demand and competition. On the other hand, in a slower market, cash offers tend to be significantly lower as buyers account for increased risk and 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 Maryland cash home buyer?

Need to sell your house fast and keep things easy? A cash sale might be your best bet. Let’s break down the steps involved in the process:

Complete the Maryland Property Disclosure and Disclaimer Statement

In Maryland, sellers are required to disclose certain information about their property to potential buyers. This is done through the Maryland Property Disclosure and Disclaimer Statement. This document requires you to inform buyers about any known issues or defects in the property, such as problems with the roof, plumbing, or electrical systems.

If you’re working with a Maryland “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 makes sure you have legal ownership and checks for any liens or claims that could prevent a smooth sale. Common reasons for title issues include boundary disputes, unknown easements, undisclosed heirs, public record errors, and forgery. By clearing these issues, the buyer ensures a clean title transfer, allowing the sale to proceed without any legal complications.

The seller pays any associated fees

A cash sale typically involves fewer closing costs than a traditional home sale. However, sellers may still need to cover some expenses, such as transfer taxes, title insurance, escrow fees, and attorney fees.

In Maryland, both the buyer and sellers are required to pay transfer taxes at a rate of 0.5% of the home’s purchase price. For first-time buyers purchasing a primary residence, the rate is lowered to 0.25%.

Note that several counties in Maryland have their own transfer taxes. In Baltimore County, for example, the tax is levied at a rate of 1.5% of the sales 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 Maryland cash home buyers

Maryland continues to be an attractive state for real estate investors, making it easier for homeowners to secure a cash sale. Whether you opt to compare buyers on your own, partner with a real estate agent, or explore an offer through Simple Sale, HomeLight is here to connect you with top professionals and valuable resources. Our goal is to simplify your selling process, taking advantage of Maryland’s active investor market to provide a quick and efficient solution for your home sale needs.

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