The recovery of the United States real estate market has had a quickened pace in the last few years. The U.S. Department of Housing and U.S. Census Bureau estimates nearly 733,000 houses sold in October 2019 alone.
That’s a massive increase of 31.6% from 2018!
Are you interested in the process of selling a house for cash rather than the traditional method? Keep reading to learn how to sell a house for cash and take advantage of the strengthening real estate market.
1. Market Your Home to Find a Potential Buyer
You cannot sell a house for cash unless you find a willing cash buyer.
Market your home yourself online or through a real estate agent. Be sure that you include you would prefer cash offers in the advertisement.
2. Request Proof of Funding
Once you and a cash buyer agree on the price of the house, you must verify they have enough funds to close the deal.
Most agents would ask for at least 1-2% upfront. Then, you should request proof of funding using investment and bank statements.
3. Complete the Contract
Next, you need to complete a contract like a Purchase and Sale Agreement.
Signing this document is referred to as “going under contract” in the real estate world.
4. Hire an Escrow Company and a Title Company (If Appropriate)
The buyer may choose an escrow company and a title company, or the seller may, depending on what state the sale takes place.
An escrow company manages all the closing documents, helps facilitate the transfer of money, and completes the legal paperwork necessary for the sale.
A title company double-checks property lines and searches for property liens that need addressing. They also issue title insurance and guarantee the property changes hands correctly.
Be advised that some joint title and escrow companies exist, so you do not need to hire two separate entities.
5. Pass a Final Home Inspection
Thinking that you want to sell my house as is? You’ll still probably need to pass a final home inspection.
Most buyers require a home inspection clause within the contract that allows them to back out if the seller misrepresented any part of the house.
6. Closing Time
Finally, on the closing day you’ll need to sign a variety of documents that include:
Final instructions for closing the escrow account
Certificate of Title
HUD-1 Settlement Statement
Bill of Sale
Statements of Information and Closing Costs
Once you sign these, you’ve just sold your house for cash.
How Long Can You Expect the Process of Selling a House for Cash to Last?
The process of selling a house for cash often takes less time than a financed purchase. As soon as you and the buyer(s) sign the contract, you may close in as little as two weeks.
It all depends on how long it takes the escrow and title companies to clear liens, for you to get insurance, and for you to complete all the necessary paperwork.
A traditional, financed home purchase takes 30-60 days.
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If you’ve been keeping track of the U.S. real estate market, you know this is a great time to try out the process of selling a house for cash. Willing buyers are out there and more buyers mean more money for sellers.
Check out the rest of our informative blog for the latest in real estate news. Keep browsing today!