If you’re thinking about selling your home to a cash buyer, then it’s important that you know all the facts about this type of transaction, everything from how to find a cash home buyers in your area. You need to know what questions to ask them before agreeing on anything, and what is required of you as the seller for this process.
There are many reasons why someone would choose to buy a home with cash, and you may have many of the same questions about this process as well. Here is everything you need to know:
What do I need from them? You’ll want proof that they’re financially stable enough to purchase your home. This means showing a bank statement or business records that show their liquid assets in order for the lender’s approval process go smoothly.
How much money will it cost me? There really isn’t an answer to this question because every transaction is different depending on how large the down payment is, whether there are any renovations needed before closing if there are repairs required after selling, etcetera. The seller should expect that a process can take anywhere from one week to three months if there are any delays with appraisals, inspections, etcetera.
What does “cash” mean when buying real estate? Cash means no loan required—the money upfront! This isn’t something most people do because lenders require a lot more paperwork than just writing out a personal check (and even then).
How will a cash home buyer purchase my property? A cash buyer is going to want to close quickly, so they may not be interested in negotiating on your asking price. They’ll also need an estimate of repairs or renovations that must happen before you sell it as-is. The seller should expect that this cash home buyer will have their own financing and fees for the closing.