When you’re selling your home, it can be helpful to know as much about the process as possible. This includes knowing what your buyer has to do in order to purchase your home. Knowing their responsibilities can help you know how long you should expect the process to take.
Making an Offer and Providing Proof of Funds
The first thing your buyer will need to do is make an offer on the house. Typically, you and the buyer will negotiate a price that is satisfactory to both of you. Once a price is settled on, the buyer needs to provide proof of funds. In a cash sale, the buyer will have all the funds upfront and won’t need to apply for a mortgage. By having your buyer provide proof of funds, you can have a guarantee that they will be able to go through with the sale
Hiring a Title and Escrow Company
Next, you and the buyer will move on to the actual process of selling and purchasing the house. To begin, you and the buyer will hire a title and escrow company. The title company will oversee the transfer of the title of the property. They will check to make sure all documentation is in order and that there are no liens or outstanding issues. This process will typically only take a few days. The escrow company will act as a third party to facilitate the sale. They will hold onto all the funds while the sale is taking place. In some cases, the title and escrow company will be one and the same.
In a traditional home sale, the home needs to undergo an appraisal to determine its value and an inspection to make sure everything is structurally sound. However, cash sales do not require these to be done. This is mainly because they are an important part of the mortgage process which isn’t part of a cash sale. Although they aren’t required, some buyers may still ask for them to be done just so they can know the value and status of the property. If inspections are included in your transaction, this will typically take 1-2 weeks to complete.
While many processes will involve both you and the buyer, many decisions and responsibilities are left up to the buyer. It’s worth it to take some time to understand what they need to do in order to purchase your home.
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