The Process of Selling Your House for Cash
How many times have you come across a sign written in all caps “WE’LL BUY YOUR HOUSE FOR CASH?” Or the increasing ads on the internet that you seem to be noticing more and more now that you’re part of the 47% of homeowners who are considering selling their homes? The COVID-19 pandemic has taken a toll on so many people across the globe.
It’s understandable if you’re at a point where you want to sell your house fast. Selling your house can be a complex and time-consuming process, though. There are tons of things involved like inspections, repairs and renovations, hiring agents, listing, staging, and showcasing to potential buyers.
It’s costly too because every one of these processes involves some kind of fee, with the agent fee alone averaging at 6% of the sale price.
If you want to avoid all this and get the money you need for your house, then selling it for cash stands as the best option. The question is, how do you go about it? Well, we have a step by step guide that will take you from start to finish.
Know the Value of the House
The first thing you need to know about selling your house to a cash buyer is the value of your house. Even though you want to sell your house as-is, it doesn’t mean that you have to sell it for the cheapest offer. To estimate the value of your home, check the worth of your neighborhood, and conduct some research on estate equity.
If you were to use a real estate agent, they would get a comparative market analysis that shows what similar properties in the market are selling for. Do something similar and compare your house to other houses with a similar condition, square footage, age, amenities, and the number of bedrooms and bathrooms.
A home cash buyer will not get a comparative analysis, so this is explicitly for you. Knowing your house’s value places you in a position of advantage as you can negotiate without losing out.
Research the Best Potential Home Cash Buyers
When looking to sell your home for cash, you have several options: selling it to house flippers, iBuyers, or rental investors. House flippers have become very popular in the past few years, and the way they operate is by buying houses in very poor conditions. The goal is to purchase houses on the cheap, renovate them, and resell them at a higher price.
iBuyers are the next option, on they are thriving in today’s digitally connected real estate market. iBuyer technically means instant buyers, and they reach people who want to sell their house fast through the internet.
These buyers also purchase houses as-is, so you don’t have to worry about making renovations or any kinds of repairs. The last option is the rental investors who take the buy-and-hold approach. They will purchase your house, renovate it, and turn it into a rental property that will generate income for them.
You can find the cash buyers on the internet, so make a quick Google search for “home cash buyers near me.” You can also search for terms like “sell your house fast for cash” or “we buy houses for cash.” Search other websites such as Craigslist too, where these buyers thrive.
Make Inquiries With Potential Cash Buyers
Now that you have found happy potential cash buyers in your area, it’s time for you to make a few inquiries find the right one. First, you have to be prepared with a list of questions for them. Be prepared to do some research because there are plenty of scammers on the internet just waiting to steal your money.
Inquire if they have recently purchased a house in your neighborhood, whether they can provide proof that they have the money to buy the house, and how soon they can close the deal. Ask what types of properties they pay for cash, their process of purchasing a house, and how they determine the best cash offer.
The Cash Buyers Will Assess Your House
Even though you’re selling your house as-is to a cash buyer, the process is still a bit involved because they need to access your house to come up with the best possible price. Once you call your potential cash buyers, they will ask you to fill a form online stating your street address for quick market analysis. They will also ask you a bunch of questions about the condition of your house to come up with an offer.
They may make an offer depending on the market analysis about the houses around your area, but they still have to come and verify all the details you have provided. They will assess the house and base their offer on their analysis. However, some will come in and say the house is in way worse condition, so be ready to negotiate.
Approve or Refuse the Offer
Depending on your research on the value of your home, you may feel that the cash offered is too low, and you are within your rights to say no. Just because they came over to assess your home doesn’t mean you’re obligated to accept what they offer you. You can always go back to the few potential cash buyers you had selected and try out another company.
If they give you a good offer, you can accept it and sell your home as quickly as possible. The process could take a few days to a week, depending on how the company operates, but you’re bound to have your money a lot faster than you would through a traditional home sale.
The buyer will take care of the documents involved, starting with having a title company verify that you have the right to sell the house. They will also have an escrow company that will manage the closing paperwork and makes sure you get all your cash as agreed.
Keep in mind that it will be impossible for you to sell the house if there are liens against it. Liens can be in the form of unpaid child support, unpaid taxes, or even unpaid repair work, so make sure you have everything in order.
Closing the Deal
On the day of the signing, the buyer will tell you everything you need, such as ID. If you have any liens or outstanding utilities, you will have to come with a cashier’s check to pay for the costs. You will sign several documents such as the final closing instructions, a statement of information, mechanic’s liens, certificate of title, a mortgage loan payoff, HUD-1 settlement statement, and the title deed.
Selling Your House to a Cash Buyer: A Guide
There you have it! This is the full process you will go through when selling your house to a cash buyer. There are plenty of cash buyers in the real estate market, so don’t let one intimidate you into taking a low ball offer.
That said, if you currently need to sell your house fast for cash in Las Vegas, Orlando, Tampa, or Saint Louis, please don’t hesitate to call us today! We’ll be more than glad to buy your house for cash.