How to Sell Your Home for Cash
How to sell your home for cash? the dream is to find homebuyers who are willing to pay in cash. Cash offers help to simplify the selling process, as there is less paperwork, fewer parties involved and a faster timeline for the deal to go through. Perhaps the biggest benefit to the seller is that the risk of the deal falling apart is much lower.
In an all-cash offer, a potential buyer offers to purchase the home with money they already have on hand, rather than doing any financing. The funds can either be transferred via cashier’s check or electronically.
How all-cash offers alter your timeline
In a typical financed purchase where the buyer will be taking out a mortgage, it will usually take at least 30 days from the offer being accepted to closing, with more popular timeframes being 45 to 60 days. The closing timeframe must be agreed upon by both parties to the transaction, and usually work around parties’ relocation plans or other real estate transactions.
But with an all-cash purchase, there isn’t a lender involved, meaning you don’t have to worry about reserving time for the mortgage documents to be drawn up. You might be able to close the sale in as little as two weeks.
So, if you have a cash offer from a possible buyer, what does the process look like? Here’s a quick overview:
- Contracts: You first accept the offer from the buyer and sign the purchase and sale agreement.
- Verify funds: When you sell your home for cash, it’s important to verify the buyer actually has the cash they say they do. First, you’ll collect earnest money (1 to 2 percent of the sale up front), and then you must request proof of funds in the form of investment or bank statements, or in the value of real estate the buyer may be selling.
- Get title and escrow companies: The title company ensures the property lines are correct and that there are no liens on the property. The escrow company handles all closing documents and facilitates the transaction.
- Home inspection: Home inspections are common contingencies in real estate transactions. There may be repairs that arise out of the inspection that must be negotiated as part of the sale.
- Closing: Finally, you’ll review and sign all the closing documents. You’ll need to bring your ID, the deed to your home (if it’s paid off), house keys, garage door remotes, alarm and door codes, a certified check to cover costs that may still be outstanding and any other documents requested by the escrow company or realtors.
The process really is that simple for a cash offer—there are several steps eliminated as part of it.
Want to learn more about the real estate transaction process and what you can do as a seller to facilitate faster transactions with prospective homebuyers? Contact RAB Property Solutions to schedule a consultation—we pay cash for houses in Arizona and would love to take a look at your home.