If you have been considering selling your house, you will want to get the highest offer and be able to close the deal quickly. The essential characteristic of a cash offer for a house is the buyer is willing to purchase the property by paying the entire cost upfront in cash rather than arranging for a mortgage by a financier after settling on the deal price.
Benefits and Cons of Cash House Sales
A cash sale takes far less time to close than financed offers because the buyer only needs to verify the title of the house and not have to wait for a home appraisal and the approval of the mortgage by the bank. Typically, cash buyers comprise companies that buy houses to sell them for a profit after renovating them. The advantage of dealing with these experienced buyers is that usually, they do not care much about the condition of the home, which means you do not have to take the trouble and expense of staging it to impress them or carry out extensive repairs to boost its market price.
On the other hand, because cash buyers have a no-fuss approach and can close deals quickly, the offers are lower than the prevailing market price for financed offers. Cash sales make great sense because there’s no delay involved in the closing, and it is well worth the slight monetary sacrifice. However, sellers must be aware that a cash offer does not guarantee a closing because the buyer may walk away if he is unhappy with the inspection report. However, it may also happen in the case of a mortgage-backed deal.
Selling Your House for Cash – Steps to Follow
When planning to sell your house, the first thing you need to do is to establish its market price. A real estate agent or an appraiser can help you out. It will help you decide if a cash or financed offer is reasonable. If you need to close the deal quickly, you should contact one of the many reputed cash buyers for a cash offer or respond to an I Buy Pueblo Houses advertisement. According to Forbes, you can also deal with an established iBuyer but be ready to pay anywhere between 5-14% of the sale price as a service fee. You must ask for references, proof of funds, and a hefty non-refundable deposit if you agree on a deal. Ask them to make a written offer and carefully examine all the terms, like the sale price, closing date, contingencies, deposit amount, etc. While the buyer will conduct a title search, he may or may not ask for a home inspection before closing the deal.
Even if you think you have a good deal and want to close the sale first, you should hire a lawyer to go through all the aspects of the contract to ensure it is watertight. He is also the best person to alert you on any probable scams. You will also need to hire a closing agent to ensure you understand and abide by all the necessary terms and conditions.