If you’ve never sold your home to a cash buyer, it’s helpful to take some time to learn about the process so you know what to expect. Unlike a traditional sale, you can close on the sale much faster. It’s overall easier and removes the stress of selling.
Cash Sale Process
The process begins when you find a buyer and settle on the price. You then need to verify that your buyer has the funds and you can do this by requesting bank statements. It’s also important to hire both a title company and an escrow company. The title company will perform a search on your home’s title and make sure nothing is standing in the way of the sale. The escrow company facilitates the sale and they will hold all the money as well as any important documents. Typically, cash sales don’t require you to have an appraisal or inspection done, but your buyer may still request them. Once you’ve completed all this, you reach closing day.
Closing Day
It will take about two weeks before you reach closing day and then you just have a few more hours to get through. At this time, you will make the sale official by signing all the final paperwork and transferring all the money. To prepare for closing, you need to bring personal identification such as an ID or a birth certificate. You also need to bring keys, garage door openers, and anything else your buyer will need. The other important part of closing is paying all the closing costs.
Closing Costs
In any sale, the seller is responsible for paying closing costs in addition to the buyer. Traditional sales require you to pay the commissions of both real estate agents and this can be about 6% of the sale price. Cash sales, on the other hand, don’t involve real estate agents, so you don’t need to worry about this cost. You will pay for all the fees and taxes associated with the sale. This includes fees paid to the title and escrow companies, lawyers involved, etc. These will be significantly lower than a traditional sale, but you should still research your local laws to know what to expect.
Closing on a cash sale can take as little as two weeks but it typically will take less than a month. If you want to sale to go smoothly, it’s helpful to do plenty of research about the details of the process. Working with a home buying company can make things easier as they are experienced buyers who can guide you through the sale.
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