Nowadays, it’s very common to see companies that buy homes for cash. The appeal is that many sellers are relieved to know they don’t need to wait months for their house to be listed and closed on.
However, as great as cash offers sound, they can be really confusing and sound almost too good to be true. So, if you are having confusion or questions about selling your home for cash, this article is for you.
How Do I Sell My Home for Cash?
Selling a home for cash is similar to selling a car to a dealership. The stress of selling yourself is eliminated. The steps to receive cash for your home often go like this:
1. Request Offer
You can skip the usual staging and open house process and simply request an offer. During this, you have the opportunity to communicate two different things: that you are selling the house “as-is” or you are open to making repairs.
2. Evaluate Home
After the initial offer, the buyer will ask for more information on your home. With this, they will most likely send someone to evaluate the house in person. Evaluating your home helps the buyer decide if they’ll accept the original offer or negotiate.
3. Contract & Proof of Funds
During this process of selling your home for cash, it’s very important that you read over the contract very carefully. Furthermore, always ask the buyer for documentation to ensure they have the money to complete the transaction.
4. Home Inspections
It all depends on the person you work with and their business model, but the cash buyer might still need to perform a professional inspection. This is required even if the property is being sold “as-is.”
5. Closing Home
Since a lender is not involved, there is no usual lender-ordered appraisal or loan processing period like in regular home selling. Usually, the average time it takes to close a home is normally 54 days; in comparison, cash buyers can close everything in as soon as seven days.
6. Clear Title
You need to do a title search to ensure that the property can be transferred to a cash buyer. This checks for any claims or judgments, such as mechanic’s liens, unpaid taxes, and boundary encroachments.
7. Money in Your Pockets
Once everything is cleared, the cash home buyer will wire the money to your bank account via direct deposit. This may take a few days to process; however, you’re set once it’s all done!
Are Cash Home Buyers Legit?
The short answer is yes; there are legitimate companies that will buy your home for cash. There are many cash buyers on the market who are trustworthy, reliable, and can provide great service. Despite this, it’s always recommended that you do your research on potential buyers before you give any sensitive information or send any money.
Is Selling For Cash Recommended?
The ideal candidate for cash home buyers really just depends. Many people prefer selling for cash because they want to move quickly or need the money. Also, many people just don’t want their homes to sit on the market for months.
If you’re someone who is looking to make a quick sale without much hassle, you will find that cash buying will conveniently work for you.
Are There Any Downsides to Cash Buying?
Like anything in life, there are pros and cons. There are a few downsides to being a home for cash buyer that you should consider:
♦ Lower Prices
The reality is that there are trade-offs in this kind of business. You may get less money for your home in exchange for a quicker, more hassle-free sale. The amount you’ll be offered will depend on many factors: including your location, condition of the home, and the company you’re selling to.
♦ Not Much Room for Negotiation
Paying cash for home is very different from traditional house selling. When you list a house on the market, many different people will see your home, fall in love with it, and make various offers. In the cash home buying process, that doesn’t exist.
The prices offered in this business might not have much opportunity to change.
How Much Money Can I Make?
Different investors and cash-buying companies will offer different prices when they want to buy houses.
Your home’s location, price, and condition will determine whether it’s more attractive to home for cash buyers. Many real estate buyers have a “buy box” that outlines the types of properties they value. This means that the “worth” of your home will differ between buyers, even among those who can immediately pay.
Who Can Purchase My Home?
There are many different home for cash buyers out there. You can find a number of them online or in person. Aside from actual businesses, there are different types of people who might be interested in all cash offers:
- Investors looking to buy or fix up properties and rent them out as rentals
- All cash offer retirees
- Wealthy buyers who can afford a cash sale easily
- Previous homeowners looking to purchase properties
The important thing is to do business with a company, or person, you feel comfortable with and believe will have genuine intentions.