Get a Cash Offer for Your House - The Quick and Easy Way!
Selling a house is often a time-consuming and complicated process. Homeowners need to deal with real estate agents, multiple appraisals and inspections, and demanding buyers. Depending on the locale, market value, and overall condition of the property you are selling, this process can take a few months to a few years. The easiest way is to get a cash offer for your house. It's the quickest way to earn money in exchange for your home.
There are many reasons for wanting to sell your house fast. Maybe you are strapped for cash, not using the property, inherited a home that you have no occupying plans, need to transfer to another city or state, or cannot continue with the mortgage payments. Whatever the reason may be, getting a cash offer on your house is one of the best ways to sell your property.
How Does a Cash Offer Work?
A cash offer means being offered an upfront payment for your house. It is an offer that does not require a mortgage or any alternative means of financing. If a buyer has enough cash to pay for the property, he can offer to pay cash on an "as is" basis.
Typically, cash offers are common in sought after locations and in situations such as:
- Companies who are interested in buying a property in that specific location or on the house itself
- Homebuyers who sold previous homes that require to move-in to a new place right away and has enough funds to pay in cash
- The house is prime property, with many interested parties vying to purchase it
- Property is an ideal choice for a complete renovation
Advantages of Getting a Cash Offer for your House
There are many advantages to getting a cash offer for your house. A typical house selling, if the buyer needs financing, will take months to close. In contrast, a cash sale can only take a few weeks to complete. Here are a few other advantages of a cash offer compared to the traditional house sale.
A cash sale is fast
Buyers have an available source of funding and don't need to wait for approval from any third-party. With a cash sale, the buyer already understands how much funding they have and will not offer on a property that they cannot afford. After the preliminaries are done, and the documentation is processed, the deal is closed. Fast and Easy.
It poses minimal risk to the seller
In traditional house selling, the biggest risk is when a buyer's pre-approved financing is reversed. The underwriting process for a mortgage loan takes anywhere from 30-60 days and varies from state to state. In a cash sale, this risk is avoided because the buyer already has cash available when both parties have agreed to close the sale. The possibility of the deal not going through is very low.
A Property Appraisal is not a requirement
Homeowners are required to get their properties appraised before putting their houses in the real estate market. The Appraiser is a third-party individual or company tasked to make a fair and unbiased assessment of the property's current market value. When you get a cash offer for your house, the buyer usually doesn't require an appraisal because he wanted to acquire the property quickly. However, it is always best to get an appraisal for you to know your house's estimated value. Most cash offers are lower than the actual price because it's a fast sale. With an appraisal, you can avoid getting short-changed.
What is the difference between a Cash Offer from a Regular Homebuying Process?
The process involved in a cash offer for your house is different from regular homebuying. Aside from the timeline - which is the most crucial aspect, there are other steps that you don't need to if you get a fast offer.
Cash sale doesn't require many contingencies compared to a regular house sale. Among them are the following:
A financing or loan contingency is a clause in the contract that allows a buyer to reverse or back out of a deal if they fail to secure funds within the stipulated timeframe. It also allows the buyer to keep the deposit they made.
A home contingency is a stipulation in the agreement that allows the buyer to back out of the deal if they fail to find a buyer for their existing home. This clause is explicitly added if the buyer requires the payment on their current house as a downpayment on their buying house. The sale contingency can negatively impact the timeline of closing the sale.
Also called "due diligence," the inspection contingency allows the buyer a specific time in escrow to inspect the property to determine if there are any issues associated with the sale like probate, unpaid property taxes, or land disputes. The due diligence process also looks into possible hazardous conditions associated with occupying the property, such as the house being prone to natural calamities. When the financier deemed the property to be less favorable, there is a risk that the sale will not push through, and the deposit returned to the buyer.
A Property appraisal is a requirement mandated by the buyer, which is usually the financier, in regular house sales. With cash offers, the buyer usually doesn't require an appraisal because they have already decided that they want the property and can buy it. However, this practice is advantageous for the seller. Buyers will often try to make a cash offer that is less than the property's market value, so it is within the seller's best interest to find out the actual value of their property before selling.
Closing the Deal
A house's cash offer is faster because it lacks the due diligence and paperwork required for financing. For the buyer, it's as simple as signing the settlement agreement, title, deed, paying the owner in cash or check, receiving the keys, and if occupied, waiting for the previous owner to vacate the property on the agreed date.
Processing the title and escrow
For buyers, you'll still need an escrow company and a title to handle the legalities. However, you can look around and get an escrow company of your choice because you are not bound by the requirements of a regular financing company
Get Cash Offer for your House
Compared to a regular house sale, cash offers provides a sweet deal to homeowners who want to sell their house. Of course, it does have its disadvantages, like getting offered less than the market value of your property, and the buyer is not vetted properly. But if you need to sell your home fast, then getting a cash offer is the best way to do that.
Like any property transaction, getting a reputable real estate agent is the key to a successful sale. Don't try to do this on your own. Many investors will take advantage of homeowners who wanted to make a fast sale. With the help and guidance of professional real estate agents, you are sure that your best interests are protected while still getting the deal closed.