Selling your house for cash can be a quick process. You may get your money in days or weeks if everything proceeds smoothly. This article will help you discover the period it takes to get your money and things that can delay the transaction.
STEPS TO SELLING A HOME FOR CASH
Here are the steps involved when selling your home for cash:
The buyer and the seller negotiate the deal's terms until they agree on them. They discuss issues like price, closing date, payment of closing costs, inspection terms, etc.
2. VERIFYING PROOF OF FUNDS
A seller ensures the cash buyer has access to funds. Bank statements or a letter from a private lender (pre-approval) can show the cash buyer has the required money. Contact the organization that issued the pre-approval letter to authenticate it.
3. SIGNING THE CONTRACT
The parties sign the relevant contracts after agreeing on their terms.
4. OPENING OF TITLE
A neutral third party (a title company) can act as a middleman during the sale. They ensure the parties follow the sales contract's terms, verify the seller has the right to sell the home, and settle any liens on the house at closing.
5. DELIVERY OF EARNEST MONEY TO TITLE
The cash buyer puts up around 1% of the sales price as a non-refundable deposit that proves their intention to complete the purchase. You'll keep this money if the buyer backs out of the sale.
6. PROPERTY INSPECTION AND APPRAISAL
This period lasts 5–14 days. However, you can ask the relevant parties to expedite it to get the money quickly.
The parties involved close the deal if they are content with the terms. They sign the documents, and the seller gets their money.
HOW LONG DOES IT TAKE TO GET CASH FOR A HOUSE?
So, how long does it take to get cash for a house?
Most cash sales close in 4–14 business days. These transactions proceed without a hitch, as all the relevant documents and processes have no issues. The transaction can take longer if there are issues, such as:
* One party is dishonest about liens, accessible funds, taxes, etc.
* There is a substantial difference between the property's appraisal value and sales price
* A deceased person's name is on the house's title
* Failure to disclose all the liens from the onset to the buyer
* A party whose name is on the title is going through a nasty divorce
* The seller is going through an active bankruptcy — needs court permission to close the sale
ENSURING CLEAR TITLE
The cash sale has to go through the underwriting and insurance process. The title process takes days or months, depending on the number of issues found by the title insurance underwriters. Some firms can conduct title research much quicker when necessary.
Selling your home for cash can take days or weeks, depending on various things. Working with an excellent real estate agent can ensure you get your money quickly. Some agencies can also buy your house for quick cash.
Learn more here.
Learn about selling an ugly house here.