About a quarter of homes are sold through an all-cash sale. If you need to sell your home quickly, then selling a house for cash is a viable option.
The process for selling a home to a cash buyer tends to be faster and less complicated than listing your home on the open market and selling it to a buyer who needs to apply for a mortgage.
This guide will explain the process and the benefits of selling your home for cash.
Benefits of Selling a House for Cash
You can close on the contract and get your money faster. This is because no lender needs to approve the buyer's mortgage.
Cash buyers are typically investors. They aren't looking for their next move-in ready home. This means you don't have to spend time and money on repairs or staging.
You'll also find it's easier to sell a home that comes with difficult circumstances. This could include title flaws, fire damage, storm damage, past-due taxes, or code violations.
What Is a Cash Offer?
Many homeowners imagine a buyer showing up with a briefcase full of cash. However, this isn't how it works. Instead, the buyer offers to buy your home outright without financing.
The funds will get electronically transferred, or you'll receive a cashier's check.
How to Sell a House for Cash
If you decide that selling your home for cash is the best option, the first step is to find buyers who can pay in cash. You could work with a local realtor, fill out an application for an online buying service, or work with a local cash for houses company.
Review Your Offers
Once a potential cash buyer has presented you with an offer, you should review it. Determine if the offer is acceptable to you. Cash offers tend to be lower, but if your home is in good condition, you could compare its value to similar homes in your market.
If your home needs work, you'll need to deduct the needed work from the value. You'll also need to deduct a commission if you decide to work with an agent.
Ask for a Deposit or Proof of Funds
Many people will ask for a deposit. If the buyer has a serious cash offer, then they shouldn't have a problem paying a deposit or providing proof of funds.
Appraisal and Inspection
Requirements for an appraisal and inspection can vary. Some cash buyers require both, others some, and others require neither. You can negotiate for the buyer to pay for both.
Signing the Contract and Payment
Once you choose a buyer, it's time to finalize your agreement. You'll have a contract that you'll need to review. If you're unsure, you can have an attorney review it.
At a minimum, the contract should outline the property, the purchase price, and the closing date. When the closing occurs, the buyer will send you payment for the property.
Consider Selling a House for Cash
As you can see, the process of selling a house for cash is simpler and faster than selling a home the traditional way. This is because you're dealing with sophisticated buyers who have money.
Browse our other real estate article for advice on buying, selling, and maintaining your home.