A Comprehensive Guide to Cash Home Buyers Long Island
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Kelsey Morrison EditorClose
Kelsey Morrison EditorKelsey Morrison is an editor for HomeLight's Resource Centers. She brings six years of editorial experience covering real estate, home design, cooking, crafting, and pet care. With a background as a commerce editor at World of Good Brands (eHow.com and Cuteness.com) and an associate editor at Livabl, Kelsey holds a bachelor’s degree in Journalism from Concordia University in Montreal, Quebec.
At HomeLight, our vision is a world where every real estate transaction is simple, certain, and satisfying. Therefore, we promote strict editorial integrity in each of our posts.
With a scarcity of buildable lots and historically low inventory, Long Island is a booming market for all-cash home sales. If you’re a homeowner looking to avoid the traditional market headaches — think contingencies, financing delays, and appraisals — accepting a cash offer ensures a faster, less complicated home sale.
Long Island’s dynamic housing market, with its mix of bustling suburban communities and picturesque seaside towns, attracts both individual cash buyers and real estate investors. This guide will help you identify credible cash home buyers on Long Island and better understand the cash home buying process. With this knowledge, you’ll be better prepared to carry out a smooth and secure cash deal.
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Disclaimer: 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.
How to find cash home buyers on Long Island
When you’re looking to sell your home fast and easily, cash buyers can be a great option. Here are a few ways you can seek out trusted cash home buyers on Long Island who may be willing to make a fair offer on your property.
Work with a reputable local real estate agent
Even if you’re leaning towards a cash sale, partnering with a reputable local real estate agent can make the process more efficient. Agents are not just for traditional sales; they often have direct connections to cash buyers actively seeking properties like yours. These buyers might include private investors or investment groups interested in Long Island’s hot housing market.
By working with an agent, you can avoid the legwork of researching and vetting potential buyers yourself. This saves you time and ensures that the offers you receive are serious and credible. Agents understand the nuances of cash transactions and can help you navigate these deals effectively.
If you don’t have an agent in mind, HomeLight can connect you with top agents on Long Island who are experienced in dealing with cash buyers. Remember, while agents help facilitate these deals, they do earn real estate commissions, which are typically lower in straightforward cash transactions.
Focus on investors rather than owner-occupiers
On Long Island, there’s a significant presence of institutional buyers, such as investment companies and real estate corporations that specialize in cash purchases. These businesses often look for properties they can quickly turn around for a profit. To capture their attention, consider promoting your property on real estate investment websites or attending local real estate investment meet-ups. You could also request no-obligation cash offers from “We Buy Houses” companies on Long Island. These cash-for-homes groups are typically operated by house flippers who follow the 70% rule — offering around 70% of a home’s after-repair value, minus any renovation costs.
Do your due diligence
When dealing with cash home buyers, it’s important to verify their legitimacy and reliability. Start by cross-checking each prospective buyer with the Better Business Bureau (BBB) to see their business rating and any customer feedback. You might also want to contact the local chapter, BBB Serving Metropolitan New York.
Read through online reviews on platforms like Google, Yelp, Facebook, and Trustpilot. These sites can provide insights into other sellers’ experiences with the cash buyer. To avoid potential scams, ensure that any company you’re considering has a solid track record, proper licensing, and positive customer referrals.
Before signing an offer, ask for proof of funds
One crucial step before finalizing a deal with a cash buyer is to ask for proof of funds. This document proves that the buyer has the necessary funds readily available to purchase your home. Proof of funds can come in the form of bank statements or financial letters from a reputable financial institution. If a buyer hesitates to provide this proof, consider it a major red flag. Instead, work with a transparent buyer who can demonstrate their ability to close the deal without any financial hitches.
Inside the Long Island cash home buyers market
Long Island’s cash home-buying market is diverse, driven not just by real estate investors but also by various groups looking for mortgage-free purchases. Here’s a closer look at the key players who might be interested in buying your property with cash.
Developers
Land has gotten increasingly scarce and expensive on Long Island, and developers are actively looking for homes to purchase for cash, tear down, and build anew at a considerable markup. The Long Island housing market is currently experiencing record-low inventory levels, and developers see the opportunity in teardowns. Facing less competition from other home sellers, these groups can charge higher prices for their new builds and turn bigger profits.
Many of the homes on Long Island were built between the 1950s and 1970s, and today’s buyers are hungry for modern, turnkey properties. If you own a home that’s outdated or needs repairs, selling it as-is to a developer can be a straightforward solution. You just have to be OK with your home getting the wrecking ball and a McMansion potentially taking its place.
Baby Boomers
According to a 2022 report by the Suffolk County Office for the Aging, seniors aged 60 and over make up about one-fifth of Suffolk County’s population. Financial advantages like hefty savings and built-up home equity allow Baby Boomers to buy houses outright more frequently.
Nationwide, more than half of Older Boomers (born 1946–1954) paid all cash for home purchases they made in 2023, as did 32% of Younger Boomers (
Property investors
If you’re a Long Island homeowner seeking a faster closing process with fewer financial complexities, accepting a cash offer from a property investor could be a solid option. Common types of investors include institutional buyers, house flippers, buy-and-hold investors, wholesale investors, and iBuyers. Long Island, with its high property values and proximity to New York City, is a hot spot for these investors. They’re typically looking for properties they can quickly renovate and resell or rent out, providing homeowners an easy exit, often without the need for extensive upgrades or repairs.
Pros of working with a Long Island cash home buyer
Cash offers can be an attractive option for homeowners seeking an efficient and streamlined sales process. Let’s explore some of the key benefits of working with cash home buyers on Long Island:
- Quick closings: Cash transactions can close much faster than those involving financing, which is ideal for sellers on a short timeline. Without the need for mortgage approvals, cash sales can often close in a few days to a couple of weeks.
- No contingencies: Cash offers typically bypass contingencies that can slow down or stall a sale. This means fewer hurdles, such as financing or home sale conditions.
- As-is purchase: Selling as-is allows homeowners to bypass the stress and expense of making repairs before selling. Some cash-for-homes companies will even let sellers leave behind furniture and other unwanted items.
- Simplified process: A cash sale reduces the paperwork and complexity typically associated with home sales.
- No appraisal needed: Since cash buyers don’t require a mortgage, there’s no need for an appraisal, which can sometimes disrupt a sale if the appraised value comes in below the agreed price.
How to request a cash offer on Long Island
If you’re searching for a straightforward way to receive a cash offer for your home, HomeLight’s Simple Sale platform might be the solution you need. By connecting you with the largest network of pre-approved cash buyers in the U.S., Simple Sale takes the work out of selling your home.
Just fill out a simple questionnaire about your property, and within 24 hours, you’ll receive a no-obligation, all-cash offer. If the offer meets your needs, you could close the sale in as little as 10 days, skipping over the usual hassles of repairs, prep work, and showings. Plus, you can set a move-out date up to 30 days from closing to accommodate your schedule.
It’s important to note, however, that cash buyers typically offer less than the potential market value of your home when sold traditionally with a real estate agent. While selling on the open market might fetch a higher price, remember that traditional sales often involve fees that could absorb 9% to 10% of your sale price. Depending on your situation and selling timeline, accepting a lower cash offer might still be worthwhile.
How much are Long Island cash home buyers willing to pay?
When selling to cash buyers, homeowners on Long Island should expect a trade-off between convenience and price. Typically, cash offers are below what a home might fetch on the open market. This is partly due to the 70% rule often used by house flippers, which dictates that they should not pay more than 70% of the after-repair value of a home minus the cost of any needed repairs. This strategy ensures they can profit from their investment after sprucing up the property.
The competitiveness of Long Island’s housing market can also influence how close a cash offer comes to market value. In a hot market, cash offers may approach, or even meet, market value due to high demand and competition among buyers. However, in slower market conditions, cash offers are likely to be lower, reflecting less competition and a surplus of available properties.
What’s the process of selling to a Long Island cash home buyer?
If you’re seeking speed and simplicity in your home selling process, a cash sale might be the perfect fit. Here’s an overview of the typical steps involved:
Complete the New York Property Condition Disclosure Statement
In New York, sellers are required to complete the Property Condition Disclosure Statement, which involves disclosing various aspects of the property’s condition that could affect its value. This state-mandated document ensures that buyers are aware of any significant issues before proceeding with the purchase. Familiarizing yourself with the specifics of what must be disclosed can help avoid legal complications down the line.
If you’re working with a Long Island “We Buy Houses” company, they typically handle the preparation of all necessary documents, including the disclosure statement. However, you can speed up the process by completing it in advance. These companies usually conduct their own inspections and purchase homes in any condition, viewing the disclosure as a legal formality more than anything else.
The buyer runs a title search on the property
One of the most important steps in the cash buying process is the title search. This step confirms your legal ownership of the property and identifies any liens, claims, or issues — such as boundary disputes or undisclosed heirs — that might complicate the sale. Understanding what a property title search involves can help you get ahead of any potential problems and resolve them before they disrupt the sale.
The seller pays any associated fees
While a cash sale generally involves fewer closing costs than a traditional sale, there are still some expenses that sellers need to cover. In New York, for example, sellers are typically responsible for transfer taxes, which can vary by location.
New York’s transfer tax requires sellers to pay $2 for every $500 of the home’s sale price. Homes priced above $1 million in New York State are subject to an additional tax called the “mansion tax.” This tax is currently calculated as 1% of the final sale price.
The Peconic Bay Transfer Tax is a supplemental 2.5% real estate transfer tax that applies to East Hampton, Shelter Island, South Hampton, and Southold (although there are some exemptions).
Sellers might also incur costs for title insurance, escrow fees, and attorney fees. However, it’s worth noting that many “We Buy Houses” companies will cover 100% of a seller’s closing costs in exchange for a lower purchase price.
Deciding to sell to Long Island cash home buyers
Long Island’s appeal to real estate investors creates a strong market for cash home sales. Whether you choose to compare cash buyers on your own, work with an experienced real estate agent, or seek an offer through Simple Sale, HomeLight is equipped to connect you with top professionals and essential resources. Our goal is to help you streamline your selling experience by tapping into Long Island’s active investor network, ensuring a quick and efficient solution for selling your home.
Header Image Source: Source: (Roger Starnes Sr/ Unsplash)
