You’re feeling ready to move on to bigger and better things and are ready to sell your house. The process of selling a house for cash can seem appealing. Often you don’t have to wait months to list and close, and selling for cash brings convenience that can be motivating to you as a seller.
Selling your home for cash offers similar benefits to trading in a vehicle to the dealership. You often pocket a little less money, but you’re paying for the ease and speed of them taking the car off your hands that day. In real estate terms, you’re essentially fast-forwarding the closing because a lender is not involved.
The process also doesn’t mean that you get the offer, and someone hands you a briefcase full of money that day. There is still a process that must happen in order to sell your house for cash.
Selling a house for cash usually follows these steps:
- Request an offer from a buyer or company that purchases houses for cash
- The buyer will get the home evaluated to determine what they’re willing to pay in cash
- Review the offer and terms
- Ask your buyer for proof of funds to make the home purchase
- Complete inspections, even if you’re selling “as is”
- Get to closing fast (this is because there won’t be a lender-ordered appraisal or loan processing period)
- Clear the title
- Get your money!
There are some other important things to look out for when you’re selling your home for cash. If the offer is coming from a cash-for home company, be sure to check their Better Business Bureau rating. Also, it’s imperative that you check their proof of funds and that they can provide earnest money for the sale.
Note there are different kinds of house buying companies that will often pay with cash. These include:
1) House flippers – Investors that transform properties by renovating and selling for a profit
2) Buy-and-hold – Companies that purchase homes with the intent of renting them
3) iBuyers – Also known as instant buyers, iBuyers are companies that utilize market data and technology to place sight-unseen offers on homes (companies like Opendoor, Redfin, or Zillow)
4) Trade-in companies – Companies that offer to purchase your current home to free funds and the need for a home sale contingency (companies like Knock, Ribbon, and HomeLight)
5) Local investors – Companies that focus on purchasing property in specific states or cities
If you’re feeling comfortable with the cash buyer for your home, it’s great to know that most cash deals close in as little as ten days to a couple of weeks. This timeline is if no issues on the seller side arise like title glitches, problems with loan payoffs, or needing to move through a probate process on an inherited home. If you have questions, it’s always a good idea to look to a real estate agent or professional for advice.
We hope this better explains the process of selling your home for cash, and that you feel more educated in making the decision if this is the right move for you. Remember to do your research, and to understand the steps it takes to sell your house for cash.