Ever came across the thought of having a streamlined process of selling a house for cash? If appropriate steps are followed, selling a house can become far easier than traditional selling.
Nowadays buyers rely on the finances borrowed from loaning companies or banks which provide a loan in the shape of a mortgage. In the long run, if the buyer’s finances collapse then the seller has to go through the process of selling the house from scratch and this can become a pain for a seller. Rather than banking on the buyer who is dependent on other entities for its finances, it is more suitable for the seller to find a cash buyer
What is traditional selling and why is it a NO?
Traditional selling asks for finding a credible real estate agent who is well aware of the local market dynamics. After successfully finding the agent, fulfilling the whims and wishes of the agent aligned with the demands of local markets in terms of upgrading and repairing your property accordingly before listing it. In this process, most likely more than one agent is involved who visits your house and before the public, you have to cater to the demands and comments of the agents and negotiate with them. In the next step, agents introduce you to the potential buyers and upon successfully breaking the deal with them you still may have to wait for the financing of your buyer if his finances are not already approved. If the finances are rejected, alas! you have to go through the rigorous process once again.
One more drawback of this kind of selling is that if the buyer puts demands of repair, that too goes from your pocket, so instead of selling your property with ease and security, it becomes heavy on your pocket as well as your mind.
The answer to these problems is Cash Buyer! A Cash buyer simply means that the buyer has the amount readily available and does not have to mortgage the amount to buy your house.
Why Cash Buying is a big Yes!
There are solid paybacks for selling your house to a cash buyer.
- Finding the cash buyer not only saves the seller from the risk of finding a buyer again but also fulfills the purpose of selling one’s property i.e., easily and available cash in return for a sale.
- Transaction speed is one of the main benefits of cash buying. As soon as you find the potential buyer of your house then cash is immediately available after striking a deal as banks and loaning companies are not there to cause delays
- You don’t have to list your house; no cleaning, tardy house showing, and home staging are required.
- Your pocket is secure as cash buyers do not ask for home inspections and repairs hence there is nothing or very less drawn out of your pocket. Moreover, there are no commissions for the real estate agents involved.
Process of Selling your Home to a Cash Buyer for Cash
A cash buyer can be easily sought if the right steps are followed. In this post, we will guide you through the course of finding a reputable cash buyer and speeding up the progression of your selling.
1. Estimating the market value of your property
Where cash buyers prove to be fruitful in terms of providing many benefits to the seller in form of convenience and speediness at the same time cash offers are often lower as compared to financed offers. So, estimating the market value of your home or property is the foremost task you need to perform when you decide to go for a cash-buying option. Estimate the market value of your home and accept the offers that are near to the value you have estimated. There are many online tools available that have data on places and various kinds of properties. Input your address and related data of your house on those tools and check for the estimated price of your property.
2. Discovering a Cash Buyer and Putting your Offer
Now that you know the value of your home, you can now search for a potential buyer and place your offer. Some of the cash buyer options are
· Franchisors: They are real estate organisations that buy houses under their franchise name, for example ‘We buy Old houses’ and buy houses in the original/ ‘as-is’ condition and offer up to 70-80 percent of the house value without any repair.
· House Flippers: They also buy houses like franchisors but they estimate the repair cost and subtract it from the 70 percent estimated cost of the house and pay it to the seller. They renovate the house and sell it further
· Buy and Hold Investors: They buy and hold your property based on the location and condition of your home. They pay you the amount based on the potential of the property to generate revenue. They usually hold the property and rent it further to obtain profits
· Trade-In Companies: These companies help you to search for a new home and let you move to your new home as a swap procedure. They pay you the difference in cost if any keeping their profits.
3. Assessment of your Offer and its Terms
Now having found a good buyer, asses your offer in terms of the price and condition of your home. Assess everything from the price you are offering to the buyer to the market value of your home. Does your home require a major repair? Is the buyer trustworthy and capable of paying the amount timely? Evaluate everything in time to avoid any disturbances or risks in the future. Some of the sample things to evaluate can be
· Do you need an attorney to review the contract if the buyer is not using a standard contract
· What are the buyer’s records of closing the deals and making the transactions
· Is the buyer ready to deposit a handsome amount of earnest money
You should pay due diligence to every little detail while selling your house to avoid any inconvenience and loss.
4. Comparative Market Analysis of Your Offer by a trusted agent
As you are going for the option of a cash buyer, maybe you have not carried out a complete market analysis of your house pricing. This step should never be ignored. Even if you have found a good cash offer you should consult a trustworthy agent for comparative market analysis. The CMA helps to calculate the price of your home concerning the neighboring properties and facilities available in your area.
5. Breaking the deal and Contract Signing
Now is the time to break the deal as you have accepted the cash offer. After the acceptance one of the most important steps that need to be performed is contract signing. This can be signed individually or can be done under the supervision of an attorney. The key details that are to be included in the contract are the deposit amount, purchase price, additional fees, closing date, etc.
6. Facilitating some Unique Demands.
Reliant on the local laws leading residential house sales and local buyers, there may be some errands you need to run to make the sales process smooth and going. For Example, you may need to make a few clarifications before selling your property and those clarifications may be regarding the safety and security of living there. Or maybe you need to clarify the type of repair that is required for a particular part of a house. In some cases, a property may be in-sellable without repair. So you have to cater to these unique demands when you sell your property.
7. Making the way through Home Inspection
Some Cash buyers may require a home inspection while others may not. That depends on the type of buyer. Usually, a home inspection must be anticipated because no one buys a thing unseen and that too a house! A home inspection usually results in potential negotiation in price so you should be mentally prepared to tackle that tactfully.
8. Closing the Deal
The closing will likely be done with a real estate attorney. In closing the deal all of the documents signed including the contract and money transfer are covered. This is similar to a traditional sale and it also includes any property disclosures, settlement statements, and other paperwork, etc.
Now having a complete overview of the traditional and cash-buying process you can now better decide the process you want to choose for selling your house. Surely selling for cash outweighs traditional selling because of its speed and short process. The certainty and convenience of a cash sale are the two main properties of cash buying that make it famous among sellers. 1000 watt Inside states that 77% of sellers would detriment 5%-10% of their revenue for the mental peace they get from a cash sale as a result of certainty. So as a home seller, you need to make a decision that best fits your circumstances and needs for selling a house.