Selling to a cash buyer can offer you a variety of benefits, but the speed of the sale is perhaps the biggest draw. Closing on a cash sale is much faster than a traditional sale because the process is streamlined. You can complete the entire process in under 30 days.
Cash Sale vs Traditional
In a traditional sale, the buyer needs to get a mortgage loan before they can purchase the home. As a part of the approval process, your home must be inspected and appraised to ensure it’s a good investment before the lender approves the loan for your buyer. The process of getting approved for a mortgage loan can take months in some cases. In the meantime, you aren’t able to begin the actual sale process. Cash buyers have all the money for the home upfront and don’t require a mortgage loan. This simple difference makes cash sales much faster.
The Process
Once you find a buyer, the process is very straightforward. You begin by hiring an escrow company to oversee the sale. They are a neutral third party and they hold all the money for the sale and they collect important documents throughout the process. In addition to an escrow company, you’ll hire a title company. They search the title of your home to make sure there’s nothing to stand in the way of the sale. After the search is completed, the title is transferred to the buyer. In cash sales, it’s not a requirement to have your home inspected or appraised, but you may still have either done if your buyer requests it. Once all these processes are completed, you will go to closing.
Timeline
When working with a cash buyer, you will likely negotiate on a price on day one and then you’ll each sign a contract stating you’ll go through with the sale. You will request proof of funds, usually via bank statements, soon after signing the contract. Hiring title and escrow companies should also be done immediately. The title search will take roughly three days to complete. If you choose to have an inspection or appraisal done, these take about a week to schedule and a few hours to complete. Closing day will also only take a few hours. Overall, you can complete the whole process in about two weeks.
When you sell your home, you don’t need to put your house on the market for months and sift through several buyers until you find the right one. A cash sale can give you a much better process. You can directly contact your buyer and get the sale started right away.
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