Introduction:
Choosing to go with a cash buyer when selling your house has many benefits. It is a quick and straightforward process in comparison to the standard financed sales. Yet there are certain factors that can impact how quickly a deal can be closed. In this article we will familiarize you with the process and give you an idea of what to expect.
Negotiations
Negotiating terms of the transaction that are agreeable to both the buyer and the seller is a requirement for both parties. These discussions may cover issues such as the sale price, closing date, earnest money, the payment of closing charges, the existence of any sale contingencies, etc. Remember that before closing the sale you need to clarify all the concerns and questions you might have.
Verifying the Proof of Funds
The term “proof of funds” refers to the seller’s responsibility to confirm that a cash buyer actually has access to the funds required to pay for the property. Bank documents or a letter from a private lender (common for “cash” deals; more on that later) might serve as proof of finances. Always get in touch with any private lenders to confirm the legitimacy of funds.
Signing the Contract
Always request that the buyer sign the standard purchase agreement. It provides buyer and seller safeguards and can be used by anyone. Some sellers opt for one-page contracts, but they often have numerous gaps that favor the buyer over the seller.
Opening of Title
A title company serves as a “middle-man” in the sale as an unbiased third party. The title company’s responsibility is to confirm that the property the buyer is purchasing matches the details specified in the sales contract. They also confirm that any liens on the property are discovered and paid at closing, and that the individual selling it has the legal right to do so. The title business determines how quickly (or slowly) the sale proceeds.
Transfer of the Earnest Money to the Title
Earnest money is money that the buyer deposits as a guarantee that they will fulfill their end of the bargain. Cash buyers must be prepared to back up their claims with deeds. A buyer who is unwilling to put down the required 1% in non-refundable earnest money is probably uncertain about their ability to close on the purchase. As a result, the sale can eventually fail. The earnest money is typically forfeited to the seller as “damages” in the event that a buyer doesn’t fulfill their obligations under the contract.
Completing the Inspection/Option Period
The buyer has the option to proceed with the acquisition at the agreed-upon conditions within the option period, if they decide to do so. During the option period, the buyer has the right to cancel the agreement for any reason and obtain a complete refund of their earnest money. In a traditional deal, this time frame is utilized to allow the buyer to inspect the property, however with a cash buyer, they have the right to waive the inspection.
If the cash buyer is an owner-occupier, they’ll often need an option period of 5–14 days so that inspections can be carried out. Typically, experienced investors won’t ask for an option period. If you need a quick, cash sale, no option periods or short option periods are preferable due to the lack of consequences for a buyer who decides not to proceed with the transaction during the option period.
Appraisals
An appraisal establishes the home’s market value, yet appraisals can often be avoided when selling to a cash buyer. Always make certain that you and the buyer are in full agreement about the applicability of an appraisal on your property.
Closing
When you sign all the paperwork needed to transfer ownership of the house from your name to the buyer’s name, this is known as closing. The title firm checks to see if they have all the required documents once the closing paperwork is finished. After making sure of it, they wire or deliver the seller any unspent funds from the transaction after paying off any liens on the property and transferring the money from the buyer to the seller.
How long does it take for a cash purchase of a home to close?
The length of time changes depending on a number of variables. A cash sale can close in a matter of days. However, this timetable also implies that the buyer can move swiftly, there are no other liens on the property save the mortgage.
Some factors that can slow down the closing process include:
- Not being open with the buyer
- Option periods
- A low appraisal, if applicable
- A deceased person being on title
- Financing
- Added liens in addition to the mortgage
Conclusion
It can be very difficult to sell a house. The secret to getting through it all is to find a method to make the process a little bit more fun, or at least a little less stressful.
Accepting an all-cash offer on your house is a strategic decision to make the selling process much simpler for yourself. In all honesty, this facilitates the property buyer as well.
There are fewer individuals to communicate with, fewer papers to sign, fewer costs to manage, and generally less work to complete. Everyone benefits from a cash purchase scenario.
Additionally, you can use all of this extra time to look for your subsequent residence.
How a Cash Buyer Can Help Sell your House
There are many benefits of using a cash home buyer when selling your house. The most obvious benefit is that you will receive cash for your house. This can be helpful if you need to move quickly or if you are behind on payments and need to catch up. Another benefit is that you will not have to go through the hassle of showings and open houses. This can be a time-consuming process, especially if you have already moved out of your house. Finally, cash home buyers typically do not require repairs or renovations before they purchase your house. This means that you can sell your house as-is, which can save you time and money.
Cash home buyers like Fair Property Buyers buy homes directly from sellers, which saves time. This option can be a good choice if you need to sell your home quickly. Although the amount of time it takes to sell your home on your own may vary, working with a cash buyer is a fast process. You can close and have cash in hand from Fair Property Buyers in as little as 3 days, depending on the situation. This allows you to move on from your old house and start fresh without having to wait for months or even years to find a qualified buyer. If you are looking for a fast and easy way to sell your house, then selling to a cash home buyer may be the best option for you.
