It’s very possible that you could close on a house with cash in a matter of days. However, between 1 and 2 weeks is more normal.
As you’d might expect, the exact timeline mainly depends on the affairs of you, your house and your buyer.
The sooner you get everything in order, the quicker the sale will be, but let’s break down the process some more so you can see where you can speed things up.
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How Long Does It Take To Close on a House With Cash?
A cash transaction can close in as little as 1 to 2 weeks and is much faster than selling through the more traditional method of a lawyer and a real estate agent. It is a popular choice among buyers who are looking for a swift and seamless transaction.
However, note that the exact timeline can vary based on individual circumstances, such as:
- Property inspections
- Title searches
- Whether you’re selling your house to an investor or not.
Note: If you’re in Southern Cali and just want a fair cash offer for your home, hit the button below!
While the above factors might influence how long to close on a house with cash, exactly, is also influenced by the following steps in the process:
1. Negotiation (Time Varies)
Both the buyer and the seller engage in negotiations to agree on terms such as the sale price, closing date, earnest money, and payment of closing costs.
These discussions can vary in duration based on the parties involved. For example, seasoned investors will know exactly how much they’re willing to pay for a house, whereas someone more green will take more time negotiating.
Additional reading: How much will an investor pay for my house
2. Verifying Proof of Funds (1 Business Day)
The seller ensures the cash buyer possesses the necessary funds through bank statements or a letter from a private lender.
Validating these funds is crucial to the process and usually takes up to 1 business day since the banks need to be open.
3. Signing the Contract (3-7 Business Days)
In Southern California, the process of signing the contract involves the use of the standard California Residential Purchase Agreement (RPA), whether you’re selling your own home in California or working with a real estate agent. You can get this form from the California Association of Realtors.
Both parties sign this agreement, which provides legal protection and outlines the terms of the sale.
The duration of this step usually takes up to 3 to 7 business days based on negotiations and the mutual agreement reached between the buyer and seller, reflecting the specific conditions and requirements of the Southern California real estate market.
4. Opening of Title (Time Varies)
A title company steps in as a neutral third party, ensuring the property aligns with the sales contract, has no encumbrances, and the seller has the legal right to transfer ownership.
The speed of this step is determined by the efficiency of the title company.
5. Delivery of Earnest Money to Title (3 Days After the Offer Is Accepted)
The buyer provides earnest money as a commitment to the contract, which is typically 1% of the sales price.
If the buyer fails to fulfill their obligations, the earnest money may be forfeited to the seller as damages.
6. Inspection Period (5-14 Days, Varies)
In Southern California, homebuyers typically navigate through the inspection period as it allows them to assess the property thoroughly. During this time, an objective third-party inspector assesses the property comprehensively.
If significant issues, such as untreated termite damage arise, buyers can renegotiate or walk away.
This period, usually 5-14 days, allows for due diligence — should buyers face inspection scheduling challenges, sellers often extend the window.
7. Appraisals (1 to 2 Weeks, Varies)
An appraisal, conducted by a licensed appraiser, determines the property’s market value.
Owner-occupant buyers often opt for this step, while experienced investors may skip it since it is not a requirement for cash purchases.
8. Closing (1-2 Weeks)
The closing phase is where the buyer transfers funds to the title company for payment to the seller.
Both parties bear their closing costs and complete the necessary paperwork, finalizing the property’s ownership transfer.
Cash transactions are fast, enabling buyers to close within a week of making an offer, provided they waive the appraisal and inspection or promptly schedule these assessments.
Additional reading: Who pays closing costs in a cash sale?
What Happens at Closing When Paying Cash?
At closing when paying cash, the buyer and seller finalize the property sale by exchanging necessary documents and funds. The buyer transfers the agreed-upon cash amount to the title company, which ensures the seamless transfer of ownership. Both parties sign the required paperwork, covering typical closing costs, and confirming the transaction.
Additional reading: Are closing costs tax deductible?
What Can Delay the Cash Closing Process?
While cash transactions are often known for their efficiency, several factors can potentially slow down the closing process:
- Title issues: Questions and issues around unresolved liens or legal disputes can heavily impact the closing process — see our guide on how much does it cost to remove a lien on property for more information on this.
- Inspection complications: If an inspection uncovers unexpected issues, negotiations may be prolonged as buyers and sellers agree on necessary repairs or adjustments to the sale price.
- Outstanding debts: Any outstanding debts or unresolved financial obligations related to the property must be settled before the transaction can close, causing delays if not promptly addressed.
- Missing or incomplete documentation: Proof of funds or necessary disclosures, for example, can stall the closing process until the required information is provided and verified.
- Seller’s circumstances: For example, if the seller faces unexpected challenges, such as difficulties in vacating the property on time.
- Escrow challenges: Discrepancies in funds or difficulties coordinating between parties are the most common delay factors here.
Additional reading: Can a house be sold with a lien on it?
The Advantages of an All-Cash Quick Close
In the competitive real estate market, an all-cash quick close offers numerous benefits, making it an attractive option for both buyers and sellers:
- Faster transactions: Cash deals eliminate the time-consuming mortgage approval process, allowing for a significantly quicker transaction from offer to closing.
- Increased seller confidence: Sellers often prefer cash buyers due to the certainty of funds. An all-cash offer provides a sense of security, reducing the risk of the deal falling through.
- Negotiating power: Cash buyers often have stronger negotiating power, as their offers are not contingent on financing approval. This leverage can result in better terms, lower purchase prices, or additional concessions from the seller.
- Savings on closing costs: Cash buyers can save on various closing costs associated with mortgage origination, appraisal fees, and lender-required inspections.
- Flexibility with property condition: Cash buyers can often overlook minor property issues since they do not require lender-mandated inspections.
How Fast Can You Close on a House With Cash at Socal Home Buyers?
If you’re in Southern California and want to avoid the lengthy processes associated with traditional sales or dealing with home buying companies you aren’t familiar with, simply do the following steps:
- Give us a call at 951-331-3844—or fill out the short form below—to request your fair cash offer.
- Await our prompt response to discuss your property in greater detail and schedule a one-time inspection that allows us to offer the highest amount possible.
- At the time of the inspection, our in-house inspector will quote you a fair cash offer, and if you’re on board, you can consider your home sold!
- Choose your closing date, and leave the rest to us. You can choose payment via check or wire transfer. It simply doesn’t get any easier.
How Quick Can an All-Cash Deal Close? Final Points
Sellers often prefer buyers with cash when they want to minimize uncertainties during the move. To make your offer appealing, clearly convey your ability to close quickly and accommodate the seller’s schedule.
For those new to home buying or facing market changes, an expert in real estate is what you need. At SoCal Home Buyers, we specialize in offering a fair market cash offer and removing the stress of selling through the traditional route.
How Long Does It Take To Close on Land With Cash?
Closing on land with cash typically takes 1 to 2 weeks, depending on various factors such as property inspections, title searches, and negotiations. Cash transactions often streamline the process, enabling buyers and sellers to finalize the deal swiftly and efficiently, provided there are no significant complications or outstanding issues.