Have you ever heard the statement “cash is king”? It implies that having cash on hand is preferable to having a promise of future payment. Would you prefer to be paid today or tomorrow?
It is simple to sell a property for cash. It’s true. Read on if you’re thinking of selling your home for cash.
Do you get a briefcase of cash the day you close a deal if you sell for cash? No. The word cash, in this case, indicates that the buyer does not require a mortgage to buy your home. You will receive payment by check or wire transfer after closing the transaction.
When your priorities are speed and convenience, getting a cash offer for your house might be the best option.
Benefits of Selling Your Home for Cash
In some states, real estate laws are more stringent than others. Cash home buyers will have their own way of doing things, depending on the state they reside in. The following are typical features of a cash offer for your house:
- No appraisals, no contingencies, and selling your house as is, no banks, and no inspections mean no delays or costly repairs.
- No commission to realtors, and no closing costs means more money on your pocket
- No showings means no hassle on your part
- Easier and simpler process all throughout
- The cash home buyer will take care of legal documents and filings
The one disadvantage of selling your property for cash is that you may not obtain the full value of your property.
What are the basic steps in the process of selling your house for cash?
- Research house sale prices in your area
- Cash home buyer assess your property
- Cash home buyer makes a cash offer for your home
- Contract Agreement
- Close the deal
Let’s look at how the process works when you sell your home for cash in more depth.
Research Comparable House Sale Prices in Your Market
If you were working with a real estate agent, this would be the time when he or she would provide you with a comparative market analysis or comp.
You may compare your home to other houses in its neighborhood, as well as others of a similar age, condition, square footage, number of bedrooms and bathrooms, and other features.
You can find this data on your own by searching for recent home sales in your neighborhood on sites like Redfin or Realtor.com.
A cash buyer will not give you the market comp, but it is a good place to start negotiations with the seller.
Research Potential Cash Buyers
Go over to Google or Craigslist and conduct an internet search for phrases like “cash for houses,” “sell my house fast,” and “sell my home for cash.” Make sure you search in your area.
If you live in Philadelphia, search for cash home buyers in the market.
Make Inquiries with Your Preferred Cash Buyers
When approaching potential buyers who might make a cash offer on your house, have prepared a list of questions. Here are some examples:
- Have you recently purchased a home in my neighborhood or city?
- Can you provide evidence that you have the funds to pay me?
- Is it possible to complete the task in 7 to 30 days?
- What sort of real estate do you pay cash for?
- What is the best way to obtain a house for cash?
- What is the best strategy for determining a home’s cash offer?
Cash Buyer Assesses Your Property
You may provide the buyer with your street address over the phone or via a web form. After that, most cash purchasers ask questions about your property in order to conduct a fast market analysis.
The buyer may make an offer over the phone, trusting that they will come to your home to check out the information you have provided. After visiting your property, some cash purchasers will make an offer.
Cash Buyer Makes an Offer
Unlike the typical buying procedure, which entails buyers consulting with their agents before making an offer, a regular cash buyer will make you a cash offer for your property immediately after completing their evaluation.
Seller Approves Offer
You have the option of accepting or rejecting the cash home buyer’s offer. You are not required to accept the offer.
Seller Chooses Closing Date
This stage of the transaction is beneficial if you need to make a quick sale.
Sign Purchase and Sale Agreement
You may have come across the phrase “under contract” in discussions with friends or family who have sold their homes. This is a contract that simply states that you will sell your property to the buyer and that the buyer will buy it from you.
Obtain evidence that the client has money to fulfill his or her promise.
The seller may or may not request that the buyer demonstrate their capacity to pay the amount specified in the contract.
Buyer Arranges for a Title and Escrow Company
The seller will be responsible for transferring title and all associated documents. This implies that a title agency must verify that you have the legal right to sell the property. An escrow company will also be used to handle all of the closing paperwork and arrange for the cash payment to you.
Remember that if there are any liens against your property, you can’t sell it. Liens are placed on homes for a variety of reasons. unpaid taxes, child support payments that aren’t made on time, and failure to pay a contractor who has done work for you are just a few examples of common reasons.
Buyer and Seller Sign Closing Documents
On the day of signing, the buyer will provide you with all of the information you’ll need, including a government-issued ID and house keys. If you have outstanding taxes, utilities, or liens to pay, you will be asked to bring a cashier’s check to cover these expenses.
When you sell your property for cash, you’ll get the following documents:
- The Closing Document is a comprehensive checklist of the escrow firm’s duties, as well as a record of all the money involved.
- A Statement of Information is a document that verifies that the person you’ve claimed to be is who he or she says he or she is.
- The Mechanics Lien is a form that you sign to indicate that no outstanding liens exist on your property.
- The Mortgage Loan Payoff document shows how much you owe (if anything) on your mortgage. Your mortgage lender is paid off by the escrow company.
- The Certificate of Title is the document that you give your word to sell the house and which verifies that you have the right to do so.
- The Title Deed is the document that transfers ownership from you to the cash buyer.
- The Settlement Statement, which is an important part of the HUD-1 Settlement, lists the sales price, any taxes due, and any utility bills that you and the buyer have agreed upon. This document is necessary by federal law.
What’s Your Next Step?
Consider a cash offer for your house if speed and convenience are important to you, and you’re willing to accept that your home may sell for less than the market value.
The process of selling your house for cash is simple. You’ve got a large choice to make, and meeting with a professional is the first step.
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