How to Find Cash Home Buyers in Minnesota for a Hassle-Free Home Sale

Inside the Minnesota cash home buyers market

While real estate investors are a large part of the cash home buyer market in Minnesota, they aren’t the only options to consider. Here’s a quick look at some of the other buyers who may purchase your home:

New residents

• Financial capability: Many new residents have the financial means to purchase homes outright, avoiding the need for a mortgage.
• Attractive cities: They are drawn to vibrant cities like Minneapolis and St. Paul, as well as scenic natural landscapes.
• Opportunity for sellers: Highlighting your property’s proximity to top schools and employment hubs can attract these cash buyers.

Baby Boomers

• Rising all-cash sales: In February 2024, 33% of U.S. homebuyers had all-cash sales, the highest share in nearly a decade.
• Demographic breakdown: Younger Boomers (born 1955–1964) accounted for the largest share of home sellers in the past year at 26%.
• Cash-ready buyers: More than half of Older Boomers (born 1946–1954) paid all cash for home purchases in 2023, along with 53% of homebuyers from the Silent Generation (born 1925–1945), and 32% of Younger Boomers.
• Appealing features: If your Minnesota house has features 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 these buyers.

Property investors

• Investor presence: Minnesota has a significant proportion of real estate investor purchases, driven by the state’s stable housing market and potential for profitable returns.
• Types of investors: These include institutional buyers, house flippers, buy-and-hold investors, wholesale investors, and iBuyers.
• Quick sales: Investors are often ready to buy properties quickly and in as-is condition, making them an attractive option for sellers looking to close deals without traditional delays.
• Success in selling: Homeowners are more likely to find success selling to real estate investors rather than traditional buyers willing to pay in cash.

Pros of working with a Minnesota cash home buyer

Cash offers can be an attractive option for Minnesota homeowners seeking an efficient and streamlined sales process. Here are the main benefits:

• Quick closings: Cash transactions can significantly speed up the home-selling process, often closing within a week or two. This is ideal for homeowners who need to sell quickly due to relocation, financial needs, or other urgent situations.
• No contingencies: Cash buyers typically do not require contingencies, such as financing or home sale contingencies, which can complicate and delay the sale. This makes the process smoother and reduces the risk of the deal falling through.
• As-is purchase: Cash buyers are often willing to purchase homes as-is, meaning you won’t need to invest time or money in repairs or renovations. This is particularly beneficial for sellers whose properties need significant work or updating.
• Simplified process: The paperwork and administrative tasks involved in a cash sale are usually much simpler compared to a traditional sale. This reduces the burden on the homeowner, allowing for a more straightforward transaction. For more details on the necessary paperwork, HomeLight offers helpful resources.
• Certainty and security: With a cash offer, there’s a higher level of certainty that the sale will go through since it doesn’t depend on the buyer securing financing.

How to request a cash offer in Minnesota

If you’re looking for an easier way to secure a cash offer for your home, HomeLight’s Simple Sale platform offers a straightforward solution. Here’s how it works and what you can expect:

1. Simple Sale platform: HomeLight’s Simple Sale platform connects you with the largest network of vetted and pre-approved investors in the U.S.

2. No-obligation cash offer: After answering a few basic questions about your home, you’ll receive a no-obligation, all-cash offer within 24 hours.

3. Fast closing: If you accept the offer, you can close the sale in as few as 10 days.

4. Convenient move-out date: Choose a move-out date that works for you — up to 30 days from closing.

5. Skip repairs and showings: Avoid the hassle of repairs, prep work, and endless showings.

6. Potential cost savings: While cash buyers often offer less than the open market, selling the traditional way includes fees that can eat up 9% to 10% of your sale price.

Cash buyers usually offer less than what you might get on the open market, but selling the traditional way comes with fees that can eat up a significant portion of your sale price. Depending on your needs, a cash buyer could still save you money in the long run.

How much are Minnesota cash home buyers willing to pay?

In exchange for speed and convenience, cash home buyers typically offer below market value. This is often guided by the 70% rule in house flipping, which means they’ll offer 70% of the home’s after-repair value minus repair costs.

For example, if your home is worth $200,000 after repairs and needs $30,000 in repairs, a flipper might offer $110,000.

Minnesota’s market is currently down, so cash offers will likely be much lower. However, with interest rates nationwide pushing most first-time buyers out of the homebuying range, there has been an influx of cash buyers taking advantage of excess inventory, hoping to score a deal.

During periods with high demand and low inventory (seller’s markets), cash buyers often come closer to a home’s market value. Offers in this scenario can sometimes range from 80% to 85% of the ARV of the property.

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

If you’re looking for speed and simplicity, a cash home sale may be right for you. Here’s a breakdown of how the process generally works:

Complete the any disclosure statements

When selling your home in Minnesota, you are required to disclose specific information about the property’s condition. This includes any known defects, such as issues with the roof, foundation, plumbing, and electrical systems. This must be made in “good faith” by the seller.

If you’re working with a Minnesota “We Buy Houses” company, they will likely prepare all the necessary documents for you, including this one. However, you can speed up the 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. 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. However, sellers may still have to pay some costs, such as transfer taxes, title insurance, escrow fees, and attorney fees. In Minnesota, the transfer tax (sometimes called a Documentary Stamp Tax or deed tax) costs the seller is 0.0033 of the net consideration (the property’s sales value) . 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 Minnesota cash home buyers

Homeowners have a good chance of selling for cash, as Minnesota remains a popular state to invest in real estate. Whether you decide to compare buyers yourself, enlist the help of a real estate agent, or request an offer from Simple Sale, HomeLight can connect you with top professionals and valuable resources. We’re here to help you streamline your selling experience, leveraging Minnesota’s investor-rich market to find a fast and efficient solution for your home sale needs.

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