How quickly do you want to sell your house? Getting a cash offer is one of the fastest ways to liquidate your property. A cash offer is when a buyer can pay for a home without a mortgage. Today, there are many real estate companies who offer to buy houses for cash from owners who want a fast-track closing and to skip the hassle of repairs and renovations. For instance, if you’ve been to Missouri, you should have seen advertising signs with slogans like “We buy houses in Kansas City.” Such advertisements from cash home buyers are quite common there. But while cash offers can be appealing, some can be predatory or even far less than your home’s value. That’s because the buyers may assume you are distressed if you opt for this conventional sale. Here are tips on selling your house for cash to help you get the most value out of your property.
Determine the Value of Your House
Figuring out how much your house is worth is the first step when selling your home. The easiest way to do this is by asking a local real estate agent, who will value it based on the locality house sales. If you want a more formal estimate, get a professional appraiser. A home value will help you decide on the price to list for your house so you can know when you are getting lowballed.
Look for Cash Buyers
Once you have figured out the value of your home, the next step is to look for cash buyers. One can do this by contacting online companies which use algorithms and programs to value your house and automatically make a cash offer. Be sure to factor in processing fees and any other costs you may have incurred renovating it. In addition, you can generate recommendations by requesting a real estate agent to target cash buyers.
Review the Offers and Terms of Buyers
Carefully consider the offer you have received and the terms that come with them. A typical buyer's proposal should include contingencies, deposit money, and closing date. A serious buyer will be ready to pay a deposit of five to ten percent of the selling price. Have your agent or attorney vet the buyers to avoid scams.
Work with an Expert to Avoid Scams
Scams are not uncommon in the real estate business. Working with a known real estate agent or an attorney can protect you from scams and other issues. While a cash offer sale for a house may seem easier and faster, it's wise to rely on an attorney before and during the house closing. This way, you can ensure that all the paperwork is available and that the title can be transferred to the buyer. It also makes the deal official professionally.
Do a House Inspection
Potential cash buyers will want to inspect the house before closing a deal to ensure they get value for their money. Some will also request an inspection of the property so that they can renegotiate the final offer if repairs are required. Be sure to be well prepared for this and a back-and-forth negotiation that may lead to a price reduction. Additionally, get an inspector to examine your house, the exterior, and the foundation for potential problems that may lead to lower offers.
Search for the Title
The title is necessary for a cash sale issue as it can delay the closing. The title can be affected by unpaid taxes, outstanding alimony, or a second mortgage. Order a preliminary title report and handle any disputes or clear due fees to avoid surprises. Seek further guidance and help from your attorney to ensure your title can be legally transferred to the buyer.
Review and Sign Documents to Close
Depending on the customs of the state you are from, the closing can be done at the office of the title company or a real estate attorney's office. Closing the house happens when you have received money for the house sale, the buyer takes ownership, and the title is transferred. Both parties are present with their attorneys when signing checks and writing up agreements.
If you need to be more confident about selling your house for cash, enlist a real estate attorney and agent to guide you on how to go about it.