Whether you are selling your first house or you’ve done this hundreds of times, the closing process of selling a house for cash is always complicated. There are a lot of people involved, including a title company, an escrow company, lenders, the buyer’s real estate agent, and the buyer themselves.
Thankfully, when you get a cash offer on your house, the selling process is somewhat simpler. The risk of the deal falling through can be lower, there isn’t as much paperwork, the timeline can go faster, and there are fewer parties involved.
So what can you expect during the process of selling a home for cash? Keep on reading and we will walk you through everything that you will want to know.
1. Sign the Contract
The first step is closing is accepting the buyer’s offer and completing a Purchase and Sale Agreement contract. This is usually known as “going under contract.”
2. Verify Proof of Funds
The buyer is using their own cash to close the deal. This means that you will want to make sure that they actually have the money available.
Usually, you will ask for earnest money upfront, around one or two percent of the sales price. You want to request proof of funds in the form of investment or bank statements.
The real estate agent can help you with this process.
3. Hire Title and Escrow Companies
Depending on the state, you might pick the companies, or the buyer might do that. A title company is in charge of making sure that the property lines are correctly drawn. They will also issue title insurance and make sure that the actual property ownership changes hands.
The escrow company is in charge of managing all of the closing documents. They also complete the legal document that records the sale and deal with the transfer of money.
The escrow and title tasks are sometimes handled by the same company.
4. Pass the Home Inspection
It is common for buyers to submit an offer with an inspection contingency. This is an addendum that states that the buyer is going to pay to have an inspection done. But they need to have the option to renegotiate or request repairs based on findings.
After this final negotiation is complete, you are ready for closing.
5. Review and Sign Closing Documents
This is the part of the process where you are going to sign a lot of papers. Even though this is a cash sale, there are still a lot of documents to go through.
Make sure to find out more about selling a house for cash if you are interested.
The Importance of Knowing What to Expect During the Process of Selling a House for Cash
Hopefully, after reading the above article, you now have a better idea of what to expect during the process of selling a house for cash. As we can see, there is a lot to deal with but it is still a simpler process than other selling situations.
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