Are you looking to sell your home? This process typically takes a fair amount of time because there are many steps to go through. You need to meet with a few real estate agents and get an appraisal.
Once you settle on an agent, they will take pictures and video to assemble your listing and market it for sale. There may be open houses and bookings for people to walk through, which requires you to always keep your house in tip-top condition. You may also have to make costly repairs to get a fair offer for your place.
This is not a fun process, but fortunately, there is an easier way to sell your house: through a cash sale. Never heard of it? You may be surprised that this growing real estate market trend helps many families move on quickly to their new lives.
This is how to sell a house for cash.
Understand the Transaction
As a seller, your perspective is to sell my house for cash. Most people know how to sell a home through a real estate agent, but what about a cash sale? This involves a person or company purchasing your home without needing a complicated mortgage financing process.
Many buyers may be interested in your property, but unfortunately, they don’t qualify because of their bank lending criteria, leaving you with a much smaller purchasing pool.
A cash buyer has money on hand for a quick transaction using a bank draft or electronic transfer. You don’t have to worry about fixing things or keeping your home “show-ready,” so it takes the burden off you.
Know the Players
A cash sale is great for the seller, but what about the buyer? They typically fall into three main types:
Flippers
This person works at buying and selling homes for a profit. They will have cash on hand and look to buy your property before it hits the market, and while you may get a lower price, it takes all the pressure off of you.
Once they make a purchase, they work to fix it up to quickly turn a profit. They take all the risks and put in their sweat and tears to make a living.
Cash Home Buyers
These companies operate to buy homes to make a quick turnaround on a sale or put it into their rental pool. They usually have contractors ready to fix any repairs needed and then resell the home for profit.
Some of their inventory goes on the rental market, generating a steady cash flow. Cash home buyers usually have several deals on the go and can quickly assess your home and make an attractive offer.
iBuyers
iBuyers are online tech companies looking for homes in good condition and using an automated evaluation model to generate a competitive offer for cash. It can be easy to fill out a questionnaire online, which goes into their system to connect buyers with sellers.
While it may sell your home quickly, they charge a commission similar to a real estate agent fee, and the offer may be low.
Know Your Home’s Value
Before you contact a cash buyer, get your home appraised through a realtor or an appraisal company. You need an up-to-date price point that reflects the state of your home, the area in which it is located and the current market conditions.
Once you get a dollar value, consider the costs of selling your home through an agent. This includes making any repairs and possibly staging the home for prospective buyers.
A cash sale will typically be lower than a real estate agent’s asking price, but this can balance out because there are no fees, and you get out of your current mortgage arrangement quickly to move on to your next residence.
Contact Some Cash Buyers
Call a few different cash buyers and have them come through to see that property. These are professionals who know the market and the costs of repairs. They also need to make a profit on the deal. You will get cash offers that you will need to evaluate and decide which works best for you.
Sign the Contract
Once you accept an offer, the buyer will bring you a contract that you can take to your lawyers if you want, and when you are satisfied with it, sign it and complete the deal. There may be some sales requirements and a home inspection required by the buyer, but you are good to go once these are met and passed.
This is how to sell a house for cash. It is a painless process that gets the deal done fast, and honestly, for most people, speed is among the most important things for their home sale. Once you finish the transaction, you can confidently move on with your life, with cash in hand, ready to purchase your next house.
