Want to learn more about the process of selling a house for cash? Did you know that an “all-cash offer” doesn’t actually exist? It’s a misnomer.
It’s actually illegal in the United States to close a real estate deal using only cash. If you’re curious about other misnomers common in the all-cash sale, we’ve got you covered. When you’re ready to unearth the correct process behind selling your house for cash, so you can reap the rewards, read on.
What’s an All-Cash Offer, Really?
If you’re selling a home for cash, what that really means is that someone’s buying your house outright, without financing. That someone can close the deal by transferring electronic funds or handing you a cashier’s check.
If you need to sell a house fast, finding a buyer who is willing to give you cash is your best bet. Your buyer won’t need to wait for money lenders to determine they’ll loan the money. Instead, your buyer already has available funds to buy your house outright.
What is the Process of Selling a House for Cash?
The main difference between selling your house for cash and the traditional financing method is your buyer. Or, more specifically, your buyer’s financial status. You’ll still need to jump through the traditional closing hoops.
Moneylenders require an inspection before they approve a property loan. Though your buyer won’t be working with money lenders, it’s still common to require a walkthrough with a housing inspector before closing.
Sign Your Contract
A Purchase and Sale Agreement contract must be completed before closing begins. The contract outlines what’s included in the sale as well as the sale price.
Verification of Funds
Some cash home buyers think they can avoid this step, but this verification is required long before the funds must be transferred to the old homeowner. This verification should happen during the initial stages of closing or before closing begins.
Hire a Title Company
You must jump through certain hoops when a title changes hands. A title company ensures the property lines were drawn correctly. They also make certain no property liens have been placed on the property.
You’ll also need an escrow company. They’re responsible for double-checking closing documents, your transfer of funds, and sale records. Many companies will handle both the title and escrow process for you.
Sign and Review Your Closing Documents
When you sell a home, you must sign a deluge of papers before the process is complete. Here’s the list:
- Final instructions for closing
- HUD-1 statement
- Title deed
- Certificate of title
- Loan payoff statement
- Bill of sale
- Lien statement
- Closing cost statement
- Statement of information
When you finish the paperwork and your funds have been delivered, congratulate yourself! You just sold your home for cash!
Other Real Estate Goodies
Though the process of selling a house for cash may feel daunting, it isn’t. It’s the same process you would use when selling a house any other way with one exception: your buyer’s financial status. Your buyer must have the liquid funds available and on hand.
If you found this information helpful, skip over to our vast library full of other articles on all things Real Estate.