The housing market in the US is booming and with it has come to a proliferation of cash purchases. Almost 30 percent of sales last year were done with cash. But do you know why so many people prefer this method?
From the ease of the transaction to saving money, cash is king. Read on as we discuss why you need to consider home cash offers.
What Is A Home Cash Offer?
A home cash offer is when the buyer offers to pay the price of a house in one lump sum, without a mortgage or financing to back it. The term is used to apply to bank transfer transactions as well, where cash is not involved. Many people see this as an advantage for a number of reasons.
There are two types of cash buyers. These are individuals and companies. Some people may take a cash offer even if it is lower than a financed offer for several reasons.
Advantages Of Home Cash Offers
The advantages of a cash home offer are numerous. Generally, they are a much quicker way to get your home sold with the minimum of fuss.
No Home Appraisal
When people come to buy the property with a mortgage, the lenders require a home appraisal. An appraisal tells them what is wrong and needs fixing with the property. Lenders are quite strict and if the company refuses to give the buyer the money, you are back to square one.
This is more likely to happen if you sell as-is. This is when the home is purchased without any repairs and renovations. In this state, it can often be hard to get a sale from people who need mortgages if you have major issues with the home.
Cash Offers Have Less Risk
When people in a mortgage chain make an offer, there is a lot that can go wrong. The buyer’s finance may fall through, or the people buying their property may back out. All of this results in a high level of risk for you.
With a home cash offer, none of that applies. You will get an offer, the paperwork then gets completed and the deal closes.
Sales Are Quicker
One of the longest processes when selling a house is the underwriting of the mortgage. In some cases, it can take up to two months. When you add in the myriad of other factors, the process becomes lengthy.
Should you want to sell your house fast, cash offers are the way. Once the paperwork is drawn up it can be completed immediately. This can often be around two weeks, but possibly even quicker.
Lower Costs
Buying with a mortgage involves lots of additional fees. There are credit checks to perform, underwriting, and real estate agent costs. All of these add up to a sizable amount.
With a house cash offer, you only need to pay for the paperwork to transfer the property. Add this to the fact that the buyer won’t be paying interest on the loan and a lot of money gets saved.
What Is The Process Of Selling A House For Cash?
The process of selling for cash is much simpler. In many cases, you can have the deal done in as little as two weeks.
Sign A Contract
The first step is for both parties to sign a purchase and sale agreement contract. Its purpose is to show that you have agreed to a sale. Commonly, it is known as “Going under contract”.
Verify Funds
Once this is done, you need to see that a buyer actually has this cash. Doing so requires bank statements. One to two percent of the sales price may be given upfront as security.
Title And Escrow Companies
Title companies are responsible for overseeing the smooth transfer of the property. They will check the boundaries of the property are correct, ensure there are no outstanding liens, and make sure the property changes ownership.
Escrow companies will manage all of the documentation and paperwork related to the transfer. This includes legal records for the sale and closing documents.
Home Inspection
Many home buyers will add a stipulation for the sale based on an inspection. An inspection will flag any major problems with the home. Based on needed repairs or renovations, they may request these to be completed or a renegotiation of the price.
Even if you sell as-is, people may still request a home inspection. This will be to get the correct price, so the buyer can renovate to sell it later. Many companies that give a home cash offer will have their own inspection team that looks at the property before they make an offer.
Signing Closing Documents
Even when you sell for cash, you still have a lot of paperwork to complete. From settlement statements to loan payoffs and the bill of sale, expect to clear an afternoon to get it done.
How To Get Home Cash Offers
When you want a home cash buyer, there are two ways to sell. The first is to an individual and the second is to a company that buys homes for cash.
Should you choose the first method, then you will need to advertise the home. Quality real estate agents are the best method. Find one who has dealt in cash sales before.
The second option is the best way to sell a house fast. While you may get a lower offer from a company, you won’t be paying real estate agent fees and many of the associated costs.
Getting A Quick Home Sale
Now you know the process and benefits of home cash offers, decide how you want to sell. For many people, a cash offer minimizes the hassle and fuss. For a super-quick sale, consider a company that buys homes.
In the Nashville area, We Buy Houses should be your first stop. We will view your house and make a cash offer immediately. Contact us here to speak with one of our staff and discuss the process.
