If you are considering selling your house quickly, it is important to have a plan in place that will allow you to do so. We’re going to take a look at the top 10 things you need to know when selling your house quickly for cash.
We’ll go in-depth on why it’s important to sell fast, and what you can do to increase your chances of getting a quick sale. The quicker you get rid of your property, the sooner you will be able to move onto something new!
You’ll find many benefits of selling your home quickly for cash. Whether you need to sell fast for cash due to financial constraints, legal reasons, or you just do not want to go through the long process of a realtor, and all of the fees associated with it, there are tips for getting the process done fast for cash.
10 tips for homeowners looking to sell their property fast for cash.
1. You are trading some equity for speed and convenience
One trade-off in selling your house fast for cash is equity. Typically, investors buy properties cash so that they can fix them and sell them at a profit. In turn, you get your money much faster than a traditional sale. The equity that you will trade may be worth it though in the short and long term, if you need to sell your house quickly and would rather not hassle with things like realtor listings, commissions, showings, or costly repairs. The time you gain back is time that you can use to move on to your new home, or to where your next chapter takes you. Plus, you will have peace of mind knowing that your property has been sold quickly, as-is, and for a fair price (typically with far less hassle than dealing with things such as long listings, showings, commissions, fees, inspections, repairs, and headaches). If you are looking to sell fast, it is worth considering.
2. There should be no closing costs, commissions, or fees
Listing your property on Multiple Listing Service (MLS) with a realtor is the most traditional route, but there can be many hidden or unexpected costs that you may decide you would rather avoid. With a cash offer, however, you don’t have to worry about paying for closing costs, realtor commissions, or title fees. Also, when you sell your house for cash, there is no need to wait for the appraisal process either. In most cases, the process is much faster.
3. There should be no repairs required
A cash offer is also a great option when your home needs repairs or updates and when you do not want to invest in costly renovations because, for example, you might be getting ready to move into a new home and do not plan on living in the previous home any longer than necessary, or perhaps the repairs are too extensive, time consuming, or laborious.
Repair costs can add up quickly when trying to sell with an agent as well, since potential buyers may require BINSR repairs (Buyer’s Inspection Notice Seller Response). This is where the potential buyer requires major repairs to be done to the property before closing. Of course, with a cash offer you do not need to worry about updating the kitchen or bathrooms with new appliances or fixtures, repairing the air conditioning unit, or repairing the roof. The offer will take care of everything required to complete a sale in order for you to get your cash as soon as possible without having to be troubled by large or time consuming construction projects.
4. You should get to pick the closing date
There is no more guesswork on when the home may close with a cash sale. You will know the exact date that you can move out and not have to worry about having your home on the market for months or being pushed out too quickly at an inconvenient time. The cash buyer will close the sale on a date that is mutually agreeable to both parties (typically what is best for you). This could be any time between 7 and 45 days, depending on what you are comfortable with.
5. Always ask for proof of funds
Some firms do not actually have cash to purchase your property. They rely on locking you into a contract and then later searching for a cash buyer. Sometimes this can lead to your contract being canceled when a suitable buyer is not found, forcing you to start the process over again. This problem can be avoided by asking for proof of funds in advance. The way that you get proof of funds is by the buyer providing a pre-approval letter from their mortgage lender or by providing documentation that states they have an account in which you can see their balance that is sufficient to cover the purchase. The buyer should show you proof of funds before you sign the purchase and sale agreement. If they have not submitted proof of funds, you may be dealing with a less than credible firm.
6. Serious buyers will be OK with a $10,000 non-refundable EMD
An EMD (earnest money deposit) is a deposit that the buyer will put down in order to signify their seriousness and good faith in purchasing your property. Serious cash buyers will put down a non-refundable EMD. We recommend asking for a $10,000 non-refundable EMD in order to demonstrate the buyer’s seriousness. This is because, as above, some firms do not have the cash to purchase your home and are simply looking to lock you into a contract in order to find another buyer.
7. There should be no inspection period.
Another way you are saving a lot of time is because you are also able to skip the step of an inspection period. The inspection period can be a way that middlemen use to back out of purchasing a property. When a serious buyer is purchasing your home as-is, there should be no inspection needed. Since you do not have an inspection period, the buyer cannot back out of purchasing your property, once they find something they do not like, without losing their earnest money deposit.
8. There should be no access to the property after the purchase contract is signed.
A purchase agreement is a legally binding contract and the buyer now has the right to purchase the property. This is done once the Purchase & Sale Agreement is signed and all other requirements are completed. Therefore, there should be no access to the property after this has taken place, since a cash sale is when the buyer is purchasing the property in its current condition. This protects the buyer and seller from any legal ramifications or issues.
9. There should be no contract “assignments” allowed.
Contract assignments are a tactic used often by real estate wholesalers. It means that the initial buyer can assign the contract to another buyer before closing. Oftentimes the buyer in a contract assignment is a middleman who is looking at the home for the hope of finding a buyer. You run the risk of them backing out when or if they cannot find someone to buy the property. When you sell your home for cash, why run this risk? Make sure your contracts are not assignable to a third-party. This way you have a clean transaction from the beginning.
10. You cannot back out
Once a real estate contract is signed, you cannot back out of the agreement or attempt to sell it to someone else (without the seller’s consent or without running the risk of serious legal ramifications). As with many types of contracts, if broken you could be sued. You could also have a memorandum or lis-pendens filed on your property. A memorandum is a way that a potential buyer can prevent you from selling your property to someone else, which is usually filed with the title company if they are in the process of buying it. A memorandum can stop you from selling to another buyer since you would first have to clear that “clouded title” issue with the original buyer prior to moving forward with a sale to a new buyer.
However, this process can also happen in a traditional real estate sale. Always keep lines of communication open with all involved parties and be sure you are ready to sell your home before entering into an agreement to sell.
Learn about Door & Key
At Door & Key, we are able to work with a variety of situations where you need to sell your house fast, for cash, or if you are just looking to explore your options.
So, what is your next step? Call or fill out the form on our website and we will be in touch with you shortly to talk about how Door & Key can help you sell your property at a fast pace, as we have done with many satisfied clients.
Call today (833) 387-7433 because it is never too late.
Cash Sale, Earnest Money Deposit (EMD), Realtor, Real Estate Contract