There are many reasons to sell to a cash buyer, but one of the most popular is the speed of cash sales. A cash sale is a more streamlined process and this naturally speeds things up. If you’re looking to sell to a cash buyer, it’s helpful to understand just what the process is like and how long it will take.
Why It’s Faster
The main reason a cash sale is faster is the fact that a mortgage is not involved. In a traditional sale, a buyer needs to apply for a mortgage loan and then wait for approval before moving forward with a sale. In many cases, this can take weeks or even months to complete. In a cash sale, the buyer has all the money upfront and they don’t need any kind of loan to back them. All you need to do is verify they have the funds and then you can move on with the sale. Additionally, the lack of a mortgage removes some of the steps in a home sale and this also speeds things along.
Required Steps
Once you verify your buyer has funds for the sale, you can actually begin the process. To start off, you’ll need to hire title and escrow companies. The escrow company is a third party that facilitates the sale. They hold the money and collect all the documents. The title company performs a search on the title of your home to make sure nothing is standing in the way of the sale such as potential heirs or existing liens on the property. In many cash sales, it’s not a requirement to have your home inspected or appraised, but your buyer may request it. An inspection will typically take place after the title search. Lastly, you’ll sign all the closing documents and officially close on the sale.
Typical Timeline
Negotiating the price with your buyer and verifying funds will take about a day to complete. The title search will take about three days to finish. If you have your home inspected or appraised, it takes about a week to schedule and then a few hours to complete. Not all sales are the same, so there may be a few others steps to complete before you finally reach closing. The closing itself will take less than a day to complete. You, your buyer, and anyone else involved will only be there for a couple of hours. From finding your buyer to closing, it takes just about two weeks.
A fast sale has many advantages. It allows you to move on to your new home quicker and it’s a great option for anyone trying to get out of a tough situation. Selling to a cash buyer is a great choice for any homeowner.
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