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San Antonio, Texas, is already the seventh-most-populated city in the country and was the fastest growing city in the United States during the pandemic. Many have relocated from California, likely drawn by the lower cost of living and ample job opportunities, but others come from all over the country. If you’re a current San Antonio resident looking to sell your home quickly for cash, the influx of buyers gives you an advantage.
Whether you’re a retiree looking to downsize from a large suburban home or a landlord ready to unload a River Walk rental condo, finding real estate cash buyers in San Antonio will be the best way to fast-track the sale and move you closer to your goals. With the help of a local real estate agent and some seasoned San Antonio real estate investors, we created this guide to give you a head-start to finding a San Antonio cash buyer for your home.
Disclaimer: Information in this blog post is meant to be used for educational purposes only, not as a substitute for professional tax or legal advice. If you need help navigating the intricacies of selling your home in San Antonio or elsewhere, HomeLight always encourages you to reach out to your own independent advisor.
The cash-buying landscape in San Antonio
The San Antonio real estate market draws investors with its consistent housing stock, variety of industries creating a broad employment base, and steady influx of residents. Here’s what to know about the cash-buying real estate landscape in San Antonio.
Affordable housing sparks investor activity in San Antonio
Darren Dickout, a San Antonio real estate investor and owner of Big Buck Home Buyers, shares that the overall state of the cash-buying market in San Antonio is strong. “The San Antonio market is relatively affordable compared to the other major metro areas in Texas, which brings investors from all over,” he says. “Several areas are undergoing major revitalization, particularly close to the downtown area. Flippers are buying up historical houses, making them beautiful and modern, and then reselling — or are keeping them as short-term rentals.”
A mix of out-of-state buyers flock to Alamo City
An influx of residents keeps the San Antonio housing market uber-competitive. Homebuyers are seeking out San Antonio as their next place to settle down because of the cultural diversity, job opportunities, and reasonable cost of living. People are finding home here, whether they’re coming from other parts of Texas or other states altogether.
iBuyers see opportunity in San Antonio
San Antonio has seen significant activity from iBuyers — tech-enabled companies that use algorithmic pricing to make instant cash offers on properties and provide an opportunity to sell your house online. One report notes that iBuyers target San Antonio for its homogenous housing stock, and sets of properties that have a uniform look or characteristics are generally easier to value and gauge margins on.
Ara Fesperman, a top San Antonio real estate agent who works on Missy Stagers’ team, confirms the city is seeing a higher percentage of cash buyers, including both iBuyers and people moving from out of state. “I’d say probably one out of every 10 buyers is paying with cash, in my experience as a listing agent. We might see anywhere from five to 20 offers on any given property, and 25% of them are beat out by a cash buyer.”
Selling to a San Antonio cash buyer
Challenges for San Antonio sellers
Every real estate market is different, with its own unique challenges that could slow down or derail a deal. Working with a cash buyer could help you overcome these common selling setbacks in San Antonio:
Surge in new home construction
Building is seeing a boom in San Antonio. In particular, as a San Antonio investor Dickout is seeing a surge of new builds on the Northwest side of San Antonio, which can pose a challenge for sellers of existing homes.
“Most of these homes are affordable, single-family dwellings, and that’s attracting many buyers to that area,” he explains. “The amount of new construction may create a challenge for some sellers, particularly if their property needs some work. Many buyers want a move-in ready house and don’t want to have to think about coordinating or paying for updates on an aging house.”
Nick Disney, owner of a cash-for-homes company in San Antonio who’s been investing in San Antonio for the last 10 years, says the city is notorious for foundation issues due to the large amount of clay in the soil. “San Antonio is susceptible to heavy rains and long periods of drought that causes the clay to swell and contract depending on the moisture conditions, which means many of the foundations will sink and settle over time,” he adds.
Repairing a foundation can easily cost well into the thousands of dollars, and can also have a ripple effect on plumbing and other issues. Many homeowners can’t — or would prefer not to — spend a significant chunk of money to get their house ready to sell. Cash investors tend to have access to more capital, resources, and contractors to handle major structural repairs, while traditional buyers are likely to be scared off by an inspection report that flags a faulty foundation.
San Antonio’s temperate weather can be a draw for some, but the mid-90s highs during the summer months can take a toll on air conditioning systems. Disney explains that A/C systems have to work harder when it’s hotter outside, which causes them to wear down faster in San Antonio than in more mild climates.
“When these systems eventually give out, many homeowners will look to move to a newer home instead of spending $5,000 to $15,000 to replace the air conditioning system in their current home,” he says. “Most traditional homebuyers are not interested in buying a home that does not have air conditioning in San Antonio, so that makes these properties ideal for cash buyers who can purchase the homes and then replace the air conditioner along with any other needed repairs.”
Timeline for a cash sale in San Antonio
While a cash sale is generally quicker and simpler than a transaction involving a mortgage, Dickout notes that the timeline can vary. In his experience, the fastest possible turnaround is around a week, but he’s had some cash sales take a couple of months.
“My company works with sellers to determine what date will work for them,” he says. “Usually, they want around a month to pack up and move. Some, however, are ready to move immediately, in which case we are limited by the bandwidth of the title company to complete the title search process and get all the documents together.”
Disney estimates that the typical timeline for a cash sale in San Antonio is about two weeks, which allows enough time to complete any title work and for the seller to tie up any loose ends with the house. However, he has seen cash sales wrap up in as little as three or four days when the seller needs to move out quickly and there aren’t any lingering title issues.
Process of selling to San Antonio cash buyers
According to Dickout, the process for selling a house for cash in San Antonio follows the same general steps as a traditional sale, albeit in a shorter time frame:
- The seller finds a buyer (or if the buyer is good at marketing, the buyer finds the seller).
- The seller and buyer agree on a price and terms.
- Both parties sign a contract and submit it to a title company.
- The buyer does due diligence during the option period in Texas (a certain number of days the buyer has to thoroughly inspect the property and terminate the contract for any reason).
- The buyer and seller sign the closing documents.
“In most cases, an investor buyer accepts the property as is — repairs and all,” says Dickout. “A diligent buyer will get a good understanding of the property from a thorough interview with the seller and a solid walkthrough with a contractor or other expert. I always assume there will be surprises, which is why I add a contingency to my rehab budget.”
Disney does recommend that all sellers complete the standard Seller’s Disclosure Notice provided by the Texas Real Estate Commission, which contains information that is required to be disclosed by the Texas Property Code regarding the condition of the property. In addition to more general items, the disclosure form also includes attributes that are specific to San Antonio, such as whether the home is in a flood plain and if it’s had previous water damage.
How much will San Antonio cash buyers pay?
Traditional buyers paying cash often pay near list price for properties in the San Antonio market. Dickout says that investors looking for profit opportunities typically follow the 70% ARV (after-repair value) rule, which means they generally pay no more than 70% of what the home’s value will be after all repairs and improvements have been made. In other words, they look for homes that have potential but just need some work. However, in a low-inventory or fast-appreciating market, they may come up to 80% or higher if they intend to hold onto it for a few years.
“Some investors and flippers seem to be able to operate on very thin margins and will offer a much higher cash offer with the intention of making only a few thousand from the flip, or possibly doing a bare-bones rehab,” he says. “But I tend to stick to the 70% rule, and if we can’t work out a deal with the buyer, then we will attempt another strategy.”
The easiest way to find a cash buyer in San Antonio
Even in a seller’s market, finding a reliable cash buyer on your own can be overwhelming. To get started, HomeLight’s Simple Sale platform makes it easy and safe to get a competitive cash offer — and yes, we cover San Antonio!
Here’s how it works:
1. Enter the address of your San Antonio-area home and answer a few quick questions about it. Is it a townhome in Wurzbach Meadow, or a historic house in Olmos Park? Does it need a little work, a lot of work, or none at all? How soon are you looking to sell? It could be ASAP or in 12+ months. Our easy questionnaire makes getting set up on the platform a breeze.
2. We’ll provide an all-cash offer in as little as a week. You won’t be obligated to accept any offer you receive. If you’d like, HomeLight can also introduce you to a top real estate agent in your neighborhood for an expert opinion on what your home is worth.
3. You sell your house in its current condition. No additional repairs, prep costs, agent commissions, or hidden fees. This can save you time and money. Foundation issues and older ACs are often no issue; our platform will provide a full cash offer for homes in almost any condition.
4. You can sell your house fast for cash in as few as 10 days. A 10-day closing translates as selling your home almost five times faster than you would with a buyer who needs financing in today’s market. According to the latest data from ICE Mortgage Technology, purchase loans are taking an average 44 days to close as of June 2023. You’ll have the ability to pick a move date that works best for your schedule, too. That’s the ease of Simple Sale!
Selling for cash in San Antonio
When you need to sell your home quickly, it can feel like you’re already at a disadvantage with buyers, especially those willing to pay cash. However, the booming city of San Antonio and the surrounding area puts sellers in a position of leverage. Even if your house needs serious TLC or you’re in a major rush, it’s the location investors will prioritize most. All you need to do is request an offer from a platform like Simple Sale and go from there.
Header Image Source: (Emily Campbell / Unsplash)