You've searched the internet for "sell my house fast" options, and you've stumbled across cash-for-real-estate or How cash home buyer programs. These seem too good to be true. Can you really get cash for your house and fast?
The answer is yes; you can sell your home for cash, though the process may not be exactly what you imagine. However, it is an excellent option for many homeowners, especially people who have liens on their homes, are selling for the first time or (Struggling to find a buyer) struggle to find buyers. Of course, it's a good idea to research the process before you contact cash home buyers. So if you are wondering how buying a home for Cash works, here's a breakdown of everything you should know as a seller.
What Are Cash Offers?When you hear the term "cash offer," you may imagine a briefcase of crisp bills. That is not how cash for home buying works. Instead, the transaction is handled entirely through an escrow company who makes sure the buyer get a clean title to the home being purchased and makes sure you get every dollar owed to you. In fact, the setup is more secure for both buyer and seller, as it creates a paper trail and brings in certified third parties to oversee the transaction.
When you sell your house fast for cash, what that really means is the buyer isn't taking out a loan. You don't have to worry about potential sales falling through because the buyers couldn't get approved for financing.
Not Physically Dollar Bills
While cash-for-houses programs don't involve physical money, it is cash, just deposited in a bank. Usually, companies make payments through an escrow account, which is standard in real estate. Of course, you can and should ask for proof of funds before you sign anything. Professional cash house buyers will be happy to provide you with documentation showing they can pay the total price.
What Are the Benefits of Selling To Cash Home Buyers?
These companies offer several benefits that specifically appeal to homeowners who want to sell their houses fast for cash. As a result, they're an excellent option in the following circumstances:
• You're upside-down in your mortgage.
• You're moving for work and need to buy a new house quickly.
• You're on the verge of foreclosure.
Even if you're just looking to sell your home without a timetable, there are plenty of reasons to choose a cash buyer.
Shorter Closing Time
Going the cash route is objectively the best option when you want to sell your house fast. When buyers have to finance, it can take approximately 45 days to close. During this time, lenders have to review financial documents, request additional information and check credit scores. Federal regulations are extremely strict about this process, so lenders have to double-check every detail, which makes for an extended application process.
Once your buyer has financing, you must go through the closing process. This can include the following:
• Negotiating fees and closing costs
• Scheduling house inspections
• Reading and understanding paperworkIn contrast, selling for cash shortens the closing time to as little as 5 days. That means you don't have to worry about juggling two mortgages or delaying moving plans while waiting for the sale to go through.
Simpler Closing Process
Most buyers in a traditional real estate transaction require home inspections as part of the closing process. Once done, there may then add contingencies to the sales agreement. For example, it's common practice for sellers to repair issues noted in the inspection or lower their asking price. Repairs can also mean more money out of your pocket with no guaranteed sale. There's also the risk that buyers' financing will fall through. When that happens, you're back to square one.
Cash home buyers do not require an inspection done on the home. So that whole process is skipped leading to better chance of closing and a faster close.
Usually, selling a house comes with several fees:
• Deed recording fees
• Notary fees
• Title insurance
• Appraisal fees
• Inspection fees
Part of the closing process is deciding who is responsible for these. Appraisal and inspection fees are often all on the buyers, however, the repairs requested from the information of the inspection will be on the sellers which means more money out of your pocket.
However, when you sell to cash home buyers, these companies take care of all fees. That means no time wasted arguing over responsibility or looking for an appraiser with reasonable rates.
Many homeowners renovate to either fix issues or increase the house's market value. However, if you're in an upside-down mortgage, you may not have the funds for even basic repairs.
Fortunately, renovations aren't an issue when selling to professional cash home buyers. These companies take homes as-is and assume they'll have to do some work before selling them themselves. In fact, many enterprises either partner with contractors or have their own construction teams to remodel homes as necessary.
Beyond saving you money, this arrangement provides peace of mind. You don't have to worry about endless home inspections or a buyer trying to haggle down the price because of issues. When you sell to cash-for-houses companies, what you see is what you get.
Finally, selling your house for cash provides greater flexibility to all parties. You can agree on a closing date that works for you without worrying about loan applications or inspection scheduling.Additionally, cash home buyers are willing to work with you even if there are judgments, taxes or liens against the home. As part of the closing process, part of the sales amount covers these expenses. That way, you're out of debt and the company gets a clean title.
How Does Selling a Home for Cash Work?
Selling your home to a company is slightly different from the traditional route. For example, you go to the buyer to start the process instead of buyers coming to you. Though it's a reversal of the usual procedure, making the first move as the seller can actually work in your favor. Instead of vetting strangers who want to buy your house, you can research the company beforehand.
Additionally, cash-for-houses enterprises usually have a clear set of procedures to determine real estate value, negotiate offers and provide payment. These procedures are the same for every transaction, ensuring everything is above-board. You can even check if a company is on the up-and-up by reading reviews and looking them up with real estate associations.
Now that you've decided selling to cash house buyers is right for you, how do you start the sale? Most companies follow these steps.
Contact the Company
Most companies let you contact them through their websites. All you have to do is enter the following: • Name
• Contact information such as phone number or email address
• Address of the property
A representative will then contact you to discuss your offer.
Get an Offer
When you choose cash home buyers, you can get an offer in as little as 24 hours. Companies determine a fair offer by looking at the following factors:
• Repairs and renovations
• Real estate market in the area
While you can accept the first offer, you may still negotiate with cash-for-home companies just like you would individual buyers. If you feel you're not getting your property's value, you should work with the company to reach an amount that satisfies you both. Also, these enterprises bring other benefits to the table (such as covering closing costs) that many homeowners find valuable, so don't forget to figure these into negotiations.
Close On the House
Once everyone is happy with the arrangement, you can sign all the paperwork. Since these sales have fewer contingencies, the paperwork should be easier to understand, but it's a good idea to hire an attorney to walk you through the legalese.
Once you've signed everything, the escrow company disperses the funds. You can then do whatever you like with them.
Coveway Properties believes every family deserves a fair price for their home, which is why we make offers based on market value. We don't low-ball sellers in hopes of making a quick buck but work closely with homeowners to reach an agreement that benefits everyone.
We also understand that moving is incredibly stressful. We work with families in creative ways to help a smoother process/transition, etc. That includes your belongings and finding a new residency. If your new residence is not ready by the time of closing in some cases we may be able to rent it back to you until your new residency is ready.No matter your circumstances, Coveway Properties can help you sell your house fast. To find out more or request a cash offer, give us a call at (925) 667-5395 or contact us online. Selling your house has never been this easy.
"What a relief to have found Coveway Properties! My husband and I have been struggling with what to do with this home for years. Every time we had a game plan to fix up the home to sell it, one of us was getting sick or recovering from surgery. Mike was so understanding and worked with us remotely to get the home sold. We are so grateful for his help!"
SUE | CONCORD, CA.