The United States housing market is worth a staggering $33.6 trillion; that’s about as much as the combined annual GDP of the world’s two largest economies. If you’ve been looking to sell your home, you might understand just how complicated and overwhelming the entire process can be. Even selling a home for cash isn’t as straightforward as you’d think, but it’s one of the simpler ways.
House cash buyers were once known as equity purchasers, but the more acceptable term these days is opportunity investors. The keyword is “opportunity” because the buyers must act quickly before the opportunity window closes. In fact, most cash offer deals on houses are likely to conclude before 30 days.
Selling a Home
However, if you’re putting your house on a cash offer, don’t expect someone to waltz in with a bag full of money. Cash offer doesn’t mean buying a house with only solid cash. Instead, it means that the buyer and seller can sidestep certain lengthy processes characteristic of buying and selling a home.
Today’s guide will teach you how to sell a house for cash.
What’s An All-Cash Offer?
As mentioned earlier, the term “cash offer” is actually a misnomer. The better term would be an opportunity house purchase, but that’s beyond the point. Selling a house for cash offer means selling a house to a buyer who doesn’t require any financing.
Not only is it a great way to avoid the complications and lengthiness of some financial processes, but it also gives the seller a quick reprieve from loans and financial turmoil. Home cashers break down into two types: individual buyers and house buying companies like this company in Chicago. The former are actual people looking for a new home while home buying companies or ibuyers are looking to buy your home as an investment.
Since cash offers are quick transactions, most buyers waive the inspection contingencies and ignore other conventional house-buying practices. Such transactions don’t involve lenders, meaning you can close the deal within a very short time.
The Process of Selling a Home for Cash
Selling a home on cash is a multi-faceted process, but it’s still shorter than selling your house the conventional way. Here’s the process of selling your home on a cash offer.
Creating and Signing the Contract
The first step to selling your home on cash is drafting a contract. The contract is a written agreement between you and the seller. It details the purchasing terms, fixtures, and the closing date, among other things.
The buyer will go through the contract and sign it if everything looks fine. The signing of this contract ushers in the second step of the process.
Fund Verification
The buyer must demonstrate sufficiently that they are able to match the cash offer. As such, the buyer must provide proof of funds. It’s then up to the seller to inspect and verify the evidence in question.
Most sellers first request earnest money that’s usually one to two percent of the home’s total price. The seller then requests proof of funds like bank or investment statements. You’ll probably need help from your real estate agent for this second part.
Hire an Escrow and Title Company
You’ll need to hire an escrow and title company for the third step. The title company confirms the property lines and makes sure they are in line with land ownership records.
It helps shield the buyer from encroaching into other people’s space. The title company also ensures that property ownership changes from the seller to the buyer.
The escrow company is the company that facilitates the transfer of funds between the buyer and the seller. The company is also responsible for all documents on the transaction, including the legal paperwork. Think of it as the company that finalizes the transaction and shields both parties from fraud and shortchanging.
The Home Inspection
The home inspection is optional, depending on the buyer’s wishes. Some buyers might choose to skip the inspection altogether. Others might want an inspection to make sure they’re getting their money’s worth.
Some buyers might submit an inspection contingency, a fee they pay the seller for a home inspection. The buyer can then suggest repairs before settling on an offer for the house.
Signing of the Closing Documents
The final step of the process involves the review and signing of the closing documents. The process entails reviewing all the buying documents and finally putting pen to paper. Here are a couple of documents that both parties should expect to sign:
- The title deed
- Certificate of title
- Final closing instructions
- Statements of information
There are a few other documents you must sign before you transfer the property entirely to the buyer. It’s wise to seek legal counsel before closing the deal.
Benefits of Selling a Home for Cash
Selling a home on cash has plenty of advantages for both the seller and buyer. If you’re looking to do the same, here are a few advantages to keep in mind.
All the Money is Yours
Unlike other selling practices, you don’t have to split part of the money with your real estate agent. All the money you get is yours.
Your Home Sells Fast
With a cash offer, the paperwork can start the moment you find a buyer. Although not instant, it’s way faster than other ways of selling your home.
Repairs Aren’t Mandatory
Most people who buy houses on cash offers don’t fuss about repairs. That means you also get to save on costly repairs.
There are many advantages to selling a house on a cash offer as long as you find a suitable buyer. It’s, however, okay to seek professional help if need be.
Selling a Home for Cash Has Never Been Easier
Selling a home for cash is the easiest way to sell your home without all the complications. Hopefully, this piece has been of immense help in learning about the entire process. Remember, you’re never too good for professional help, especially legal help in such matters.
Would you like to read more accurate and enticing information on various topics? Be sure to check out other informative pieces on the site.
Recommended Articles