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

Inside the Rhode Island cash home buyers market

Rhode Island’s cash home-buying market is largely driven by real estate investors, but other groups may be willing to buy your bungalow mortgage-free. Let’s take a closer look at these cash buyers and what motivates them.

• Baby Boomers: In February 2024, 33% of U.S. home purchases were all-cash transactions, the highest share in nearly a decade. Younger Boomers (born 1955–1964) accounted for 26% of sellers last year, with many using proceeds to buy new homes mortgage-free. More than half of Older Boomers (born 1946–1954) and Silent Generation buyers (born 1925–1945) paid cash for their 2023 home purchases.
• Property investors: These include institutional buyers, house flippers, wholesale investors, buy-and-hold investors, and iBuyers. Many are drawn to Rhode Island’s rental and resale opportunities.
• iBuyers: iBuyers often pay closer to market value than other investors but charge service fees and are selective about the homes they purchase. They provide a unique alternative for selling quickly while balancing convenience and cost.

Pros of working with a Rhode Island cash home buyer

Cash offers can be an attractive option for Rhode Island homeowners seeking an efficient and streamlined sales process. Let’s explore the key benefits of working with a cash home buyer:

How to request a cash offer in Rhode Island

If you’re looking for an easier way to secure a cash offer for your home, HomeLight’s Simple Sale platform can connect you with the largest network of vetted and pre-approved investors in the U.S.

After answering a few basic questions about your home, you’ll receive a no-obligation, all-cash offer within 24 hours. If you accept the offer, you can close the sale in as few as 10 days. You can skip the repairs, prep work, and endless showings and choose a move-out date that works for you — up to 30 days from closing.

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 9% to 10% of your sale price. So, depending on your needs, a cash buyer could still save you money in the long run.

How much are Rhode Island cash home buyers willing to pay?

Cash investors and home-buying companies often look for deals where they can buy properties for less than what they’re worth on the market. In return, sellers get the benefit of selling their homes quickly and with less hassle. House flippers usually follow the 70% rule, meaning they try not to pay more than 70% of a home’s after-repair value (ARV), including repair and upgrade costs.

Given Rhode Island’s current conditions, offers from house-buying companies might be lower than what you could get on the open market.

Additionally, the number of buyers on the market willing to pay cash is squeezing out first-time buyers, as a lack of inventory is leading buyers with tappable equity to pounce on available property.

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 range from 80% to 85% of the ARV of the property.

What’s the process of selling to a Rhode Island 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 Rhode Island Real Estate Sales Disclosure Form

Most states have mandated disclosure laws and require you to fill out a form detailing any material defects in the home. In Rhode Island, sellers are required to disclose any defects before accepting an offer by completing the Real Estate Sales Disclosure Form.

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

While cash sales typically involve fewer fees compared to traditional sales, you may still incur some closing costs, like transfer taxes, title insurance, escrow fees, and attorney fees. For example, Rhode Island sellers typically pay the Real Estate Conveyance Tax (aka transfer tax) at a rate of $2.30 per $500 on the purchase price of the property.

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 Rhode Island cash home buyers

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 Rhode Island’s investor-rich market to find a fast and efficient solution for your home sale needs.

Editor’s note: As a friendly reminder, this blog post is meant to be used for educational purposes, not legal or tax advice. HomeLight always encourages you to reach out to your own advisor.

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