There are many reasons why you might be thinking about selling your home. If you want to sell your home quickly, you may want to consider selling your home for cash. This Redfin article outlines the process of selling a home with cash. Whether you’re selling your home in Dallas, Texas or in a Boston, Massachusetts condo, there’s something you need to know about accepting an all-cash offer.
In this article:
What is an All Cash Offer?
A cash offer is when a potential buyer bids at full speed. This means there are no mortgages or other funding involving lenders. These offers are more attractive to sellers as there is no risk of the buyer’s mortgage collapse. Also, since you don’t have to wait for the mortgage underwriting process to end, All-Cash offers also tend to have faster deadline dates.
How long does it take to close on all cash transactions?
Closures on all cash transactions can take just two weeks. Given that there are no issues with home inspections, it can take about a week from accepting the offer to closing date. However, if the buyer’s cash is subject to revenue from the sale of the current home, it may take some time to close.
What are the benefits of accepting cash offers at home?
There are several benefits to accepting cash offers at your home. Let’s take a look at them:
Less contingency: Less contingency with cash offers, such as valuation or funding emergency. Reduced financial risk: Selling a home to a cash buyer reduces the risk of a buyer’s funds collapse. Shortened closure process: You may be able to close within just two weeks of your mortgage application or underwriting. Because of this different timeline, proof of buyer funds and time is required to complete the buyer closure process. Selling your home quickly is easy: Whether you sell your investment property, inherit the home, or simply need money for your next down payment, accepting a cash offer will speed up the sales process.
What is the process of selling a home with cash?
Once you have accepted all the cash offers in your home, these are the next steps.
Step 1: Sign the contract
After accepting the offer, you will need to sign a purchase and sales agreement. Following this, the house will be “on contract.”
Step 2: Check the buyer’s proof of funds
Your real estate agent can help you with this step, but you need to check the buyer’s proof of funds. You probably want to pay seriously upfront. This is usually 1-3% of the home’s purchase price. Request proof of funds in the form of a bank statement or investment statement to prove that the buyer actually has cash available.
Step 3: Find Escrow and Title Company
Depending on where you live, you can choose the title and the escrow company or buyer. The title company guarantees that there is no lien on the property, issues title insurance and transfers ownership. Escrow Company processes the closed documents, completes the necessary legal documents, and transfers funds.
Step 4: Check at home
It is likely that a home inspection will still be performed, and many buyers can include inspection contingencies in their offers. If you experience any major issues following your home inspection, you may need to negotiate with the buyer. Once this is done, you can move forward by closing the house.
Step 5: Review and sign the closing document
Just like when you bought your home, there are plenty of documents to sign when you sell your home. Here are some of the documents you can expect to sign:
Closure Instruction HUD-1 Settlement Statement Title Deed Deed Deed Deed Deed Deed Sale Loan Payoff Statement Mechanics Closure Cost Statement Statement
>>Read: Should I sell my house now?
FAQs about selling your home for cash
Are there any drawbacks to accepting a home cash offer?
There are several drawbacks to cash offers. You can receive a lower offer price than expected. There may be a higher risk of fraud. Buyers may also request additional repairs, updates or concessions.
Who buys a house with cash?
There are several types of home buyers who may make a cash offer to your home. These may include standout buyers, housing company cash, ibuyers, house flippers and investors.
How many cash offers can I get?
The number of cash offers you may receive will depend on your local housing market, the condition of your home, and whether you are seeking cash offers online.
