Selling your house to a cash buyer is advantageous in several aspects. If you’re thinking about it, you probably already know that it will be a much smoother process than if you sold to a financed buyer, especially in the ways that lead to the cancellation of the sale. That said, a cash sale still comes with its own unique set of procedures that you may or may not be familiar with. So, how complicated is the process for selling your house for cash? While this may seem straightforward, there are a few things that you need to keep in mind. If this is something that you’re interested in, read on for a step-by-step guide on selling a house for cash.
Accept the Offer and Sign the Contract
If you’re happy with your seller’s cash offer, you complete what’s called a “Purchase and Sales Agreement.” Once you sign that agreement, the deal is official. A side note to that is that the agreement should include details on any contingency plans. A contingency in real estate can be just about anything that would cause the sale to fall through.
Secure a Proof of Funds
This step is important for your protection when you are selling a home to someone who plans to purchase it using their own money. There are a couple of steps you want to take to ensure that the payment has been approved. First, request that they pay 1% or 2% of the sales price at the start. This is called “earnest money.” Then, you need to check that they have enough money to complete the transaction. If a real estate agent helps with this process, you will not miss any important considerations.
Hire a Title Company
You can’t sell your house without a title company. A title company makes sure things are on the up-and-up, with a detailed review of property lines, property taxes, and assessor records. The issue title insurance, which protects you financially. They also oversee the official change in property ownership and investigate any property liens placed on your home.
Hire an Escrow Company
You need someone to oversee the closing of the deal. The escrow company oversees the legal paperwork and the transfer of funds.
Undergo Inspections
Before you sign the final contract, the buyer will likely request an inspection of the home to spot potential problems, which can be expensive. The issues discovered can lead to the buyer asking for repairs or renegotiating the price.
Sign the Closing Documents
Now that you’ve gone through the first five steps, all you have left to do is sign the following documents:
- Final Closing Instructions
- Statement of Closing Costs
- Statement of Information
- HUD-1 Settlement Statement
- Loan Payoff Statement
- Mechanics Lien
- Bill of Sale
- Certificate of Title
- Title Deed
And there it is: your house has sold, and you’re ready to move on to the next chapter of your life. It took a little effort, but it was still a much shorter process than working with a buyer who was using other financing options.
Conclusion
We hope this article proves to be useful when it comes to helping you gain a better understanding of how to sell your home for cash. While the process may seem intimidating, the information that we’ve laid out should help make things infinitely easier. Be sure to keep everything you’ve learned here in mind so that you can make the best possible decisions when selling your home.
If you need legitimate cash home buyers in Texas who can offer the most appealing deal for your home, check out Greenlight Offer! Get in touch with us and learn more about selling your house for cash with us.
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