Many homeowners are opting to sell their homes to cash buyers. If you’re considering this, you may be wondering what exactly this entails. Understanding the closing process can help you feel more comfortable and confident going into the sale.
Why Is a Cash Sale Different?
In a cash sale, the buyer will have all the money upfront rather than applying for a mortgage. Typically, a buyer will have to apply for a mortgage loan and then wait to get that loan approved. This can take weeks and significantly delay the sale. With a cash buyer, they can make an offer and you can begin the process of transferring your property immediately. Additionally, the lack of a mortgage means you can skip certain steps in the process. For example, you aren’t required to have an inspection or appraisal done unless the buyer requests it.
Leading Up to Closing
As you prepare for closing, there are a few things you need to take care of. First, the title transfer must be initiated. To do this, you will hire a title company to begin a title search. During this search, they will look for any outstanding liens or anything else that could prevent the sale from going forward. This process will typically take a few days to complete. Once it’s done, the title can successfully be transferred to your buyer. During this time, you may also hire an escrow service. They are a third party that helps to facilitate the sale to make sure everything goes as it should.
Closing
On closing day, you and the buyer will make everything official. There are several documents you need to sign. You should bring any personal documents to verify your identity before signing. During closing, you will also pay any closing costs. Typically, this includes any state and local taxes such as capital gains taxes and transfer taxes. You will also pay all associated fees such as the title search fees, escrow service fees, recording fees, etc. The closing process usually takes just a few hours to complete.
All in all, the process of closing on a cash sale is fairly simple. There are a few things you need to take care of personally, but most of the work will be done by professionals. Finding an experienced buyer can also ensure the process goes smoothly.
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