Can I Sell My House for Cash? (Hint: Yes!) Learn How Today
Sometimes life happens and you just need to sell your house as quickly as possible for cash.
You might think that due to the economic uncertainties and COVID-19’s effect on the real estate market that you’ll be entering a lose-lose game. However, that couldn’t be further from the truth. In June 2020, sales of existing homes shot back up nearly 21%.
But, if you’ve barely recovered from the trauma of buying your home, you might be looking at the selling process with a hairy eye, and even wondering “should I sell my house for cash?” It doesn’t have to be this way. Keep on reading for our full breakdown of how to sell your home for cash, as simple and easy as you please.
Sell My House for Cash 101: What’s the Process?
Before we start our deep dive into the strategies and steps you’ll want to take when you start your house selling process, let’s make sure we cover some of the basic elements of the whole process.
Generally speaking, cash buyers are looking for houses like yours because they don’t need any form of lender financing to buy your house. That’s why they tend to prefer buying your house off-market.
More likely than not, you’ll be getting offers that have fewer contingencies than normal because there will be no appraisal from the bank or the buyer won’t have to sell their own house before getting a loan, and other elements that are more common in the traditional house buying process.
This makes the process of selling your house for cash much easier for both you (the seller) and your buyer.
Step 1: Find Your Cash Buyer
The very first step in the process is getting a potential cash buyer for your house. If you reside in the Greenville, NC area, then you’re in luck. Find out more here and get your house sold in no time.
If not, then there are different platforms you can check out to reach your buyers. The first would be your old-school online search. Interestingly enough, the majority of cash-buying-investors will have a large internet presence.
On the other end of the spectrum, you can decide to work with a wholesaler. In the simplest of terms, a wholesaler is a specialized professional who will match cash buyers with cash sellers, for a small cut in fees. However, they tend to take care of a whole lot of the small tasks that you might have been dreading.
For instance, they can value your property, estimate the rehab costs (if it needs some love), then market them to their pre-existing buyers’ list. An easy way to hunt down wholesalers in your area would be googling the terms “we buy houses,” followed by your area name.
Once you have a couple of prospective buyers, you’ll want to do some research and ask for references.
Step 2: Get and Review Your Cash Offer
At this point, you’ll want to review the cash offers you get. You’ll want to pick the offer with the best (and fair) number, right? Unfortunately, there is no single formula that could tell you whether the number you’re getting is good or not.
However, you can always take a look at comparable properties, especially if your house is in great shape, and see how much they were selling for.
Once you have that number, you can remove an estimate of the agent’s commission, and then you can throw in a discount if you feel like it.
On the other hand, if your house is looking a bit rough, you’ll want to take the approximate value of the updated houses in your area, then subtract the actual cost you’ll be paying to get it fixed, subtract the commission, as well as the investor profit (around 15%).
The final number will be a good estimate of a fair price.
Step 3: Prepare and Sign the Contract
Once you’ve accepted a cash offer, the remaining process is quite similar to a typical home sale.
Generally speaking, the contract would be prepared by the buyer, and it’ll include the purchase price, the deposit amount, as well as the closing date. As the seller, you can choose to sign and accept them alone, or with an attorney present to review the terms.
Step 4: Nail Down Any Unique Requirements
In most cases, cash sales are a streamlined, quick, and straightforward process. Yet, there might be extenuating circumstances that might pop up and lengthen the process.
An example would be a house that is in a homeowners association. The HOA might ask for 30 days to process the buyer’s application. Another example would be the municipal lien search, which is a required step in any real estate closing. The tricky part here is the municipality itself. Some take a few days, while others can take up to three or four weeks.
Step 5: Close on the Sale
Now we come to the exciting part.
As the process won’t involve any lender financing, it’ll be rather quick. Most sellers are okay with a two-week close, which is a much shorter time span than your average time to close a purchase loan, which is an average of 45 days.
The closing itself isn’t that different from a regular sale, just faster. The closing will probably be held at a title company, you’ll sign the same documents you’d expect to see in a traditional sale, like the deed, the settlement statement, and any property disclosures.
Ready to Sell Your House?
We completely understand how overwhelming the selling process can seem, especially for first-time sellers.
However, we hope that our guide into the intricacies of selling your home for cash has shed some light on the process, and made it look much less scary than it might seem at first.
“Can I sell my house for cash?” The answer is a solid yes, and it’ll be a much faster and easier process for both you and your buyer. Just remember to conduct some research into your potential buyers, as well as perform a simple comparison between your home value and other comparable properties in the area.