How Does the Cash Home Buying Process Work?
We can all agree that selling your house can be frustrating, especially when there are so many procedures you have to go through. Even something as straightforward as allowing buyers to secure funding can be a lengthy and nerve-wracking process. And, if the bank doesn’t come through and blocks the procedures, the result can be devastating to both you and the buyer’s morale.
However, if you are on a schedule or simply want to do things as simply as possible, there is another solution — cash offers! And while finding a cash home buyer can seem tricky, it is much easier than the alternative. But best of all, cash offers have a long list of benefits, with little to no downsides, regardless of your specific situation.
If you have received a cash offer on your house, you most likely wonder how everything works. Luckily, the selling procedure is similar to buying, so here are the steps to easily understand what the process entails for you and cash home buyers like Integrity Cash Homes.
Firstly, you need to ensure that potential buyers have enough money to purchase your property. That involves making background checks or simply asking for proof. However, keep in mind that some buyers might have money spread through different places, such as investments and stocks. So make sure they cash them out before proceeding, or else you might have to wait until they do so.
It’s also important to remember that cash home buyers are usually using their hard earned money when purchasing properties. In other words, you need to decide pretty early if the people interested in your home are truly potential buyers. Otherwise, you’ll waste their time and money, even making them avoid the cash offer market entirely.
As previously mentioned, you need to make sure that the buyers are trustworthy and serious. Usually, cash home buyers will provide sellers with a letter from their bank which confirms their funds and assets. But if they don’t, you can ask for evidence of assets from their bank by yourself.
Even though the buyer doesn’t have to work with a loan agent, they might still want to check that your home is in good legal condition. As a result, you may have to involve a realtor or title company, who is usually a third party that holds and moves cash and helps complete the transaction.
Before you can close the deal, the cash home buyers will most likely want to check the property and its condition. So make sure that your house is clean, and everything is where it should be. Also, since this is usually the last inspection, don’t leave behind anything you want to take with you after closing.
If you are ready to sell your home, then it’s time to close the deal! Since your buyers don’t need to apply for a loan, you won’t have to wait much if you sell your house for cash in KC. In fact, the closing can occur in a matter of weeks or even days for a cash deal.
However, you need to clearly establish how you will accept the cash offer. For instance, you can accept an official check or a wire transfer. But regardless of the method, both parties need to be in agreement for the deal to go through.
We know that selling your house for cash can be an emotional experience, especially if you’ve lived in it your entire life. Not only are you letting go of your precious property, but you are also leaving behind all sorts of memories. Yet, you can create new memories and experiences thanks to the money you now own.
So, what should you do with your newfound cash? Anything you want! From buying a new home to investing in one of your existing properties, there’s an endless supply of ideas and exciting possibilities.
Generally speaking, people are buying homes for cash because they want an easy and hassle-free transaction. However, there are many other reasons that people prefer cash deals. Here are just a few of the most common types of cash home buyers in Kansas City:
- Real Estate Investors who don’t need loans and can afford to pay cash on the spot.
- Retirees who want to buy a home using their retirement savings or investment funds.
- Mortgage holders who want to use the money made from selling their home to purchase another one.
- People who try to earn money using the fix and flip method. Those are usually real estate investors who purchase homes, upgrade them and then sell or hold them as investment properties.
Selling your house for cash in KC offers a lot of benefits for both you and any potential buyer. And while some are more significant than others, all the following benefits are perks that are exclusive to cash offers.
The most noticeable difference between cash and traditional home deals is the closing time. When it comes to conventional home deals, both parties are used to a long and frustrating closing process. More specifically, trying to fulfill all the requirements for a mortgage can delay the transaction and waste your precious time. Not only that, but in the case of a loan endorsement, you might have to wait for up to 60 days before you can close the deal.
Why is this so frustrating? Because many unforeseen events can occur while you wait. For example, if the buyer is suddenly facing financial difficulties, the home loan lender may decline to offer an advance, which could destroy the whole deal. As a matter of fact, financial troubles are one of the most common reasons for failed deals.
In contrast, cash deals aren’t dependent on contract guarantees, meaning that they are faster. So there is less risk for buyers as they will receive the money almost immediately.
Since the bank isn’t involved in cash home deals, you have more liberty to negotiate with buyers. And while some cash buyers will request a house evaluation to ensure that they are getting a fair deal, nobody can force you to ask for a similar amount of money. In fact, as long as the buyers can afford it, you can increase the price point as much as you want.
Additionally, some buyers are looking to close the deal as fast as possible, especially if they want to flip the property. Therefore, they are less likely to negotiate and will usually accept the price you are asking for.
If you have ever bought or sold a home with a real estate agent, you know all about their commission fees. And even though the amount of money varies from person to person, the seller usually has to cover the commission. So, a cash deal is much more convenient as you don’t have to pay any additional fees. Make sure you also choose a reputable house buying company in Kansas City if you are looking for a safe and comfortable transaction
During a conventional home deal, your house will get inspected in order to secure a loan. And, if there are any issues discovered, you will either have to pay for repairs or lower the asking price accordingly. Perhaps you just inherited a house or let it go beyond what you’re willing to repair or put into the property to fix it up.
Fortunately, cash deals are not tied to your home’s conditions. In other words, you don’t have to make any repairs or deep cleaning before selling your house. Nothing else matters as long as the buyer agrees with the state of your home and your asking price.
As we noted previously, selling your home can be both an interesting and frustrating experience. However, things become even more complicated if you are looking to buy another place and move as soon as you sell your current home. And, with so many things on your mind, the stress of dealing with multiple inspections and evaluations is the last thing you want to experience.
Luckily, cash home deals are less nerve-wracking and more convenient. Not only you won’t have to deal with inspections, but you might also be able to avoid extra work such as cleaning or repairs. So, if you are already busy with moving out, cash deals are your savior.
Overall, selling your home for quick cash is extremely beneficial. And since they are less risky and much faster than traditional transactions, it is a great way to sell your home without the hassle or headache.
Next time you want to make a deal, you should think about accepting a cash offer on your house. And if you don’t know where to start, make sure to check out our website. We buy houses in Kansas City, so you can relax and forget about dealing with real estate agents.