Short answer: If you have equity, selling on the open market usually puts more money in your pocket than a quick cash offer. If you owe more than the home is worth, any buyer, cash or not, still needs your lender's approval for a short sale. Compare before you sign, and know that Colorado law protects you if you live in the home and are behind.
| Cash buyer | Open-market sale or short sale | |
|---|---|---|
| Speed | Can be very fast if you have equity | Weeks to a few months |
| Price | Usually well below market value | Market value, with buyers competing |
| If you owe more than it's worth | Still needs lender approval | A short sale is designed for this |
| Repairs | As-is | As-is in a short sale |
Your protections in Colorado
If you live in the home and you're at least 30 days behind, Colorado's Foreclosure Protection Act applies to investor buyers. They must use a special contract, give you 3 business days to cancel, and can't pay you before closing, take your deed before the cancel period ends, or rent the home back to you with an option to buy it back. A true short sale using the state's Short Sale Addendum is the main exception. Read more about your rights.
Red flags
- "Just sign the deed over to us and we'll handle the bank."
- A rent-back with a promise you can buy the home back later.
- Pressure to sign today, or a contract that waives your right to a jury or to sue in Colorado.
- Upfront fees to "stop" a foreclosure.
- Nobody involved has a Colorado license. You can check any broker on the Colorado Division of Real Estate website.
Talk it through with a real person, free
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