The housing market is booming, last year it had its highest sales since 2005! Many people are trying to get in on the action before it’s too late.
If you are thinking about getting a cash sale on your home, you may be wondering, what is a cash only home sale?
There are many benefits to going this route. However, before you go about finalizing a cash sale, getting knowledge about the process can save you a lot of unnecessary frustration.
Here’s a look at some of the main things you need to know.
What Is a Cash Only Home Sale?
There are also a lot of misconceptions surrounding what it means to sell your home for cash. Selling a home for cash means that someone has offered to buy your home and they will not need to apply for a mortgage in order to be able to afford it.
Getting a cash sale on your home means that you will get the full price paid upfront without having to do a lot of paperwork via various mortgage lenders. When you agree to have a cash sale the buyer will normally transfer the money into your account.
The Benefits of a Cash Sale
Selling a home for cash can be very beneficial to a buyer. This is because it reduces the amount of paperwork and the waiting time you face when selling your home.
If you have to wait on someone to get a mortgage from a lender it is likely to take some time. Sometimes the buyer may end up being refused the mortgage.
When this happens, you will need to start all over again with a new buyer and this can delay the sale of your home by weeks and sometimes even months. If you are in a hurry to sell your home and move on to other ventures this can be an inconvenience.
This is why cash sales are so beneficial.
Sell Your Home “As Is”
Often when you sell a home to someone who needs a mortgage you will need to get a home inspection done. It is unlikely that the person will receive the mortgage they want unless they have a home inspection.
The lender will need to know the exact condition of the home before they sign off on the payment. If the home is not up to certain standards you may be asked to fix some things before the mortgage will be approved.
You may also have to spend money on your own home inspection to make sure that the report from the buyers of the home inspection team is accurate.
This is a lot of red tape and you can wind up spending a lot of time going back and forth deciding what you will fix or what the buyer will deal with themselves.
Do You Need a Real Estate Agent?
When you’re selling your home for cash using a realtor is not necessary. However, you can get a real estate agent if you don’t want to deal with any of the paperwork that will be involved.
While there may not be as much paperwork as there would be if you were selling to a buyer who had to get a mortgage, there will still be some paperwork involved. If you don’t want to have to deal with this then getting a real estate agent involved is still a good idea.
This does mean that you will need to pay the real estate agent of commission for their time and service. If you would prefer not to share your profits with anyone then it is best to forgo getting a real estate agent.
Finding a Cash Buyer
It is probably obvious to you by now that selling your home for fast cash has a lot of perks. However, you may be wondering where you can find someone who would want to buy a home for cash.
There are many different types of people who buy a home for cash. You can advertise online or through flyers in your local community to find these people.
Some companies can buy your home for cash. When dealing with these types of companies make sure you do a background check on them to ensure that they are legitimate companies.
Once you find a good one, discuss with them how much they are willing to pay. Sometimes, you may have to lower your price to get a sale.
Some people buy houses simply to flip them. A house flipper is not necessarily affiliated with a company, sometimes they work on their own.
iBuyers are another group of buyers that may be interested in buying your home for cash. They are affiliated with large real estate tech companies and they use software to determine the value of your home. Once they have determined the value of your home they will make a cash offer on it.
Make sure that you get quotes from several of these types of buyers before settling on one.
Make that Sale
Now that you know exactly what is a cash only home sale, the only thing you need to decide is whether it is right for you. As you can see there are many benefits to doing this kind of sale for your home.
Not the least of which is the fact that it is often faster and you won’t have as much paperwork to deal with.
Finding the right cash buyer is essential if you want to make sure that this type of sales works for you. Once you take the time to do due diligence you should have no problem getting a good deal with this kind of sale.
If you would like more informative tips please visit the finance section of the website.