How to Find Trustworthy Cash Home Buyers in Philadelphia

Inside the Philadelphia cash home buyers market

While real estate investors are a major force in Philadelphia’s cash home-buying market, they’re not the only players. Let’s explore the different types of cash buyers who might be interested in your property and what drives their interest:

Transplants seeking affordability

Despite a recent population decline, Philadelphia remains a popular choice for urban living thanks to its affordability. With a median home price of $375,000 (as of May 2024), the city offers a significantly lower entry point compared to other major East Coast cities like New York City, Washington D.C., and Boston. This affordability makes Philadelphia an attractive destination for budget-conscious homebuyers seeking a vibrant, urban lifestyle.

Some of these individuals, particularly those moving from higher-cost areas, may prefer to pay cash for their new homes. This allows them to avoid high mortgage rates, get a leg up over the competition, and close the sale more quickly.

Baby Boomers

Roughly 15% of Philadelphia’s population is 65 and over. A recent article in Philadelphia Magazine suggests that Baby Boomers are downsizing by buying smaller homes, including condos and townhouses. Many of these older buyers have significant home equity or long-term savings they can use to purchase their next place outright.

Across the country, 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 Philadelphia home boasts features that are ideal for downsizing Baby Boomers, highlight them in your listing description.

Mention a first-floor primary suite for one-level living, low-maintenance outdoor space for easy enjoyment, and wide doorways and hallways for accessibility. These features can grab the attention of cash-ready buyers looking for a home where they can age in place.

Property investors

Philadelphia is a magnet for real estate investors. With a variety of properties and the potential for high returns, homeowners might find greater success selling to real estate investors than selling to traditional cash buyers. A recent report found that, on average, Philadelphia homes resold by investors sold for 136.2% more than their original purchase price in the first quarter of 2024.

Common investor types in Philadelphia include house flippers, buy-and-hold investors, corporations, wholesalers, and iBuyers. Motivated by renovation, rental income, or resale opportunities, these investors offer a viable option for homeowners seeking a fast cash sale.

Pros of working with a Philadelphia cash home buyer

Securing a cash offer might be the key to a faster, smoother home sale. Ahead, we’ll explore the benefits of working with cash home buyers in Philadelphia:

How to request a cash offer in Philadelphia

If you’re seeking a straightforward way to get a cash offer for your home, HomeLight’s Simple Sale platform is an excellent option. After answering a few basic questions about your property, you can receive a no-obligation, all-cash offer within 24 hours. If you accept, the closing process can be completed in as few as 10 days, allowing you to avoid the hassle of repairs, staging, and showings. You also have the flexibility to choose a move-out date that fits your schedule, up to 30 days after closing.

However, it’s important to remember that cash buyers generally offer less than what you might get on the open market with a real estate agent. While selling traditionally can lead to higher offers, it also comes with fees that can consume 9% to 10% of your sale price. Depending on your circumstances, a cash buyer might still offer the most convenient and financially sound solution.

How much are Philadelphia cash home buyers willing to pay?

Cash home buyers often pay sellers below market value for their properties in exchange for a quick and convenient sale. One common guideline in house flipping is the 70% rule, which suggests that investors should pay no more than 70% of the home’s after-repair value, minus the cost of repairs. This helps guarantee that flippers can make a profit after renovating and reselling the property.

The competitiveness of Philadelphia’s housing market directly influences cash offers. When the market is hot, cash offers tend to be closer to market value due to increased demand. On the flip side, when the market slows down, cash offers are likely to be significantly lower than market value, as buyers factor in the risks of a slower resale. Understanding current market conditions can give you a better idea of what to expect from cash buyers.

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

If speed and convenience are top priorities when selling your Philadelphia home, cash buyers could be a good option to consider. Let’s break down the typical steps involved in a cash home sale:

Complete the Pennsylvania Seller’s Property Disclosure Statement

When selling a home in Pennsylvania, you are required to complete the Seller’s Property Disclosure Statement. This document asks you to disclose any known material defects in the property, such as issues with the roof, foundation, electrical system, or plumbing. It’s important to be thorough and honest in this disclosure to avoid potential legal issues down the line. The state mandates these disclosures to protect buyers and ensure transparency in real estate transactions.

If you’re working with a Philadelphia “We Buy Houses” company, they will likely prepare all of 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

Cash buyers will also conduct a title search. This is a crucial step that confirms you legally own the property and there are no outstanding claims or liens that could block the sale. Common title issues include disagreements over property lines (boundary disputes), rights granted to others to use your property (easements), hidden heirs with a stake in the property, mistakes in public records, or even forgery. Addressing these issues before the sale can prevent delays and ensure a smooth transfer of ownership.

The seller pays any associated fees

A cash sale generally involves 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 Philadelphia, the Realty Transfer Tax amounts to 4.278% of the property’s sale price or assessed value. One percent of that goes to the Commonwealth, while the rest supports the City’s General Fund.

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

Deciding to sell to Philadelphia cash home buyers

Philadelphia’s active real estate investor market makes selling your home for cash a viable option. Whether you decide to compare buyers on your own, work with a real estate agent, or explore an offer from Simple Sale, HomeLight can connect you with top professionals and essential resources. By understanding Philadelphia’s investor landscape, you can find a fast and efficient solution for your home sale needs.

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