With the average family having just over $8000 in savings and the economy struggling, some homeowners are desperate to part with their properties to shore up their liquidity. Consequently, we’re seeing more sellers push for the coveted “all-cash deal”.
All-cash real estate deals are when you sell your house to a buyer that doesn’t need financing. The advantage of taking cash for your home as opposed to having a lender involved is that closing periods are faster and there is a lower chance of last-minute cancellations.
In this post, we quickly walk you through steps you should take if you’re interested in selling your home for all-cash. We hope that with a framework in place, you can proceed confidently towards getting the real estate deal you’re looking for.
Advertise Your House As All-Cash Preferred
When you put your house on the market, very few buyers are going to come knocking and offer you all-cash. To try and bring all-cash buyers out of the woodwork, consider adding a note in your home description that all-cash buyers are preferred.
When you do this, you raise the chances that all-cash individuals will inquire about your property, although, they may negotiate harder on price seeing as how they know they meet your selling preferences.
“Sell my house as is for cash” investment companies are another quick and easy avenue you can go down to quickly find cash buyers. Know though that they tend to make offers below market value.
Get Your Buyer Under Contract
Once you have located a buyer that’s willing to offer you cash for your home, the next step will be to get that buyer under contract. This means that a buyer will sign a purchase agreement that outlines the price of the home and what mutual expectations are between them and you.
This contract will also include contingencies. Contingencies enable buyers to pull out of a deal under certain circumstances.
Verify Your Buyer’s Funds
All-cash deals require a buyer to have a lot of liquidity. Seeing as how rare it is to find high-liquidity individuals, you’ll want to verify a buyer’s funds before going any further through the sale process.
A copy of bank records should suffice for this purpose.
Work Through Contingencies
Common contingencies when selling a house include the home passing inspection and the property being free from liens. When selling to an investor, there may be an additional contingency that lets them pull out of a deal if they can’t find someone to re-assign their contract to. This is a common practice among wholesalers.
Work with your buyer, title companies, and other parties to push through contingencies so you and your buyer can close.
Close the Deal
With all contingencies met, it’s time to finish your all-cash deal. Finishing comprises signing papers and transferring assets via an escrow/title company. Note that the presence of said companies varies depending on state regulations.
Review all documents before finalizing your deal and once it’s done, enjoy your cash in the way of a bank wire or cashier’s check!
Getting Cash for Your Home Always Makes Things Easier
Selling a home under the supervision of financiers creates headaches for both buyers and sellers. When you take cash for your home, the deal you make is solely between you and a buyer. That creates conditions for more leeway, compromise, and expediency.
We wish you the best of luck in finding an all-cash buyer and welcome you to browse more real estate content in our blog for additional insight.