Do you have a house you need to sell quickly?
If you have a home you need to sell quickly, selling your house for cash can be a great option.
Imagine selling your house and having cash in your bank account in a matter of days or weeks instead of months, without the headaches of hiring a listing agent.
Selling to a company that pays cash for a house, means faster closing times and less stress. It also eliminates the need to pay for closing costs, repairs, and real estate commissions.
Read through this guide, and use the Table of Contents below if you’re unsure what selling your house for cash means, or if you’re unsure whether it’s the right option for you.
What Does it Mean When Someone Says Cash Offer?
When someone says they have a cash offer for a house, this does not mean they will literally pay in cash. This simply means, they will not use traditional financing and will transfer the
funds electronically or with a cashier’s check after closing. Once transferred, you will have immediate access to the money.
Accepting a cash offer typically results in faster closing times.
If you want a cash offer for your house, it usually involves eight steps:
1. Request a Cash Offer
Contact a company that buys properties for cash and request an offer. This lets you skip the staging process of selling your home. Be sure to let the potential buyer know whether or not you are selling or home “as is,” meaning you would not be making any repairs.
2. House Evaluation
The potential buyer will contact you, collect some information, and likely send someone to the house to evaluate the property. They will then let you know how much they are willing to pay.
3. Contract Review
As the seller, you will review the offer and any other contract terms. You get to decide whether or not to accept the offer.
4. Get Proof of Funds
If a person or company is giving you a cash offer, you should verify that they are legitimate and have the funds to close the deal. The buyer can request proof of funds from their bank or other financial institution. This is usually easily available within a day or two.
5. Possible Inspection or Appraisal
Depending on who the buyer is, they may get an inspection or appraisal done on the house. This applies even when selling “as is.”
6. Quickly Move to Closing
The typical loan processing and closing period for a home sale was 54 days, as reported in December 2021. With a cash buyer, the sale and closing process can usually be completed
in two weeks or less.
During the closing process, you will need to review and sign some documents. Some common closing documents include:
Hud-1 Settlement Statement: Federal law requires a detailed account of all the money involved in all real estate deals.
This document should include all negations, the final sale price, payoff balance, utility bills, pro-rated taxes, and any other financial details.
Final closing instructions: This is typically signed when you open an escrow account. It will outline everything the escrow company is responsible for and what will happen after closing.
Certificate of Title: This legal document shows that you have the right to sell the property.
Loan Payoff Statement: If there is a mortgage on the property, this document will list how much you owe the lender on the date of closing. This should match the amount the escrow
company will pay for you.
Title Deed: The deed is a piece of paper that transfers ownership of the property to the buyer. You will sign this at the closing and then it will be recorded at the county
Bill of Sale: If there are any specific negations you made during the sale, for example, you are
leaving behind some furniture, you will include this here.
Mechanics Lien: With this document, you swear that no contractors or other laborers have a lien on your property.
Statement of Information: This document says you are who you say you are.
Statement of Closing Costs: This document lays out all closing costs. When you sign you, you agree that you knew about these fees ahead of time.
7. Title Search
Before you can officially sell your property, the buyer will need a title search. This ensures there are no judgements or claims against the property. This includes things like unpaid taxes, liens, and property encroachments. Once the title is verified as clear, the sale can be finalized.
8. Get Your Money
With a clear title, the buyer will transfer the money to you typically within a few days. While the image of stacks of cash can be dreamy, there are still a few official steps you need to go through to sell your home for cash.
Are Cash Offers Legal?
When you hear the phrase “cash offer,” you might imagine a suitcase full of physical cash. Unfortunately, in the United States, it’s illegal to close and pay for a real estate deal with actual cash.
Cash offers really mean buying a house without using traditional financing. The funds are transferred electronically or with a cashier’s check. If someone offers you physical cash,
do not accept it.
7 Companies that Buy Houses for Cash
While there are people who pay cash for houses they plan to live in, most cash buyers are companies.
You have likely seen ads online or even billboards around your neighborhood for companies that offer to buy houses for cash. If you own a house that you need to sell quickly or sell “as is,” selling to one of these companies can be an ideal solution.
Before you accept an offer from a home-buying company, make sure it’s accredited with the Better Business Bureau. You should also read online reviews to see what the experience
Today, there are various types of home-buying companies. These may include investors, iBuyers, and house flippers. Investors and house flippers may come to you with an offer, while iBuyers typically require a seller reaching out to them.
Here are some companies that might be able to buy your house.
Offerpad operates in 22 metro areas in Georgia, Ohio, South Carolina, Alabama, and other states. They offer quick closing and cash offers. However, if repairs are needed, they may reduce the offer significantly because of repair costs. This company charges a 5% service
Opendoor is considered an iBuyer, or instant buyer. These types of companies operate quickly and typically offer reasonable cash offers. However, they only operate in certain areas and have strict requirements for a house to qualify. Opendoor operates in California, Ohio, Tennessee, Texas, and other states. It also offers flexible closing times in about 14 days and charges a 5% service fee.
3. Redfin Now
RedfinNow is another iBuyer. It buys owner-occupied and vacant homes, which allows for
more flexibility in difficult situations. However, this company has service fees as high as 13% and higher closing costs, which could reduce the final cash price.
4. We Buy Ugly Houses
This is a national home-buying brand that has been in business for over 20 years. It’s also known as HomeVestors of America. Because it’s a franchise, the quality of service will vary depending on where your house is. We Buy Ugly Houses typically offers cash prices far below market value. However, you can get an offer in 48 hours or less and close within three weeks.
Sundae is a unique marketplace where you can get multiple cash offers on your property. It’s designed specifically for real estate investors looking to flip distressed properties. Sundae
operates primarily in southern California.
6. We Buy Houses
This company uses carefully vetted real estate investors to buy properties. They can make cash offers in 24-48 hours and can close without extra fees in as little as 7 days. This company has more than 2,700 offices in 49 states.
7. SoCal Home Buyers
SoCal Home Buyers makes it easy to sell your house fast for cash in Southern California. They
specialize in buying houses “as is” and will even buy rental properties. They offer flexible closing schedules in as little as 7 days and offer payments through check or wire transfer.
Why is Selling a House for Cash Better?
Under certain conditions, selling a house for cash is going to be better than going the traditional route with a real estate agent.
Here are five situations when selling for cash could be a better choice:
1. You Need Flexibility & Speed
The traditional way to sell a home can be cumbersome, inflexible, and time consuming. This does not work if you need to sell a house quickly. Perhaps you have just gone through a divorce, you are relocating for a new job, or you are facing default.
Selling for cash means you don’t have to worry about an offer falling through and the closing times are much quicker – you can sometimes have your cash in as little as 7 days.
Without having to deal with a mortgage lender, you get to skip the lengthy underwriting process and all the inspections, appraisals, and approvals. The standard home-buying process can take months, with the average clocking in at over 50 days.
Selling for cash also eliminates the need and cost to stage your home, take photos, post it online, host an open house, and schedule home showings.
Cash buyers are usually willing to work with your schedule. Want to close on a specific date or need more time to move out of your home? Cash buyers can make this happen without any hassle. The actual closing process is also faster since there will be less paperwork and no
2. Your House Needs Work
An “as is” cash sale eliminates the need for house repairs and cosmetic updates. You won’t have to go back and forth with a buyer who is asking you to make numerous improvements to the property before they agree to buy.
Most cash buyers do not require sellers to make any repairs or cosmetic upgrades before buying. When selling for cash, there are typically few, if any, contract contingencies.
However, most companies will base their offers on the condition of the house. If more repairs are needed, this will lower the offer price.
Learn More: How to Sell a House that Needs Major Repairs
3. Don’t Want to Pay Real Estate Fees
Working with a real estate agent can make selling your home easier, but it’s also expensive. Real estate commission fees can be as high as 6% of the sale price of a home. This can put a huge dent into your profits.
If you want to eliminate those fees, sell your home for cash. There are no real estate agents involved and you can save money on commission, bank fees, and home improvements.
4. You Want to Sell a Rental Property
Selling for a cash can be a great option for real estate investors. If you have a rental property you want to sell that’s giving you problems or needs some upgrades, selling it for cash is a quick and easy way to get rid of it. Many home buying companies can even take over properties with tenants.
Selling for cash at a loss may even yield some benefits, especially if rent prices are dropping, there is a construction boom in your area, or you want to avoid some capital gains taxes.
5. You Need to Avoid Foreclosure
If you are having trouble keeping up with your mortgage payments, you could be facing foreclosure. A foreclosure can be a huge hit on your credit. If you want to avoid that situation, selling your home quickly for cash could be the ideal solution.
Selling for cash can help you pay you mortgage and give you the chance to start over. Perhaps your home was too big and more than you can handle? A cash sale can help you downsize to something more manageable and affordable.
Learn More: How to Sell Your Home Before Foreclosure
Stressed about selling your house?
Selling a house in California can be difficult if your home is in no condition to list on the market. If you need speed and a guaranteed sale without the stress, hassle and headache of listing and hiring a Realtor, we can help.
Receive a guaranteed all cash offer within 48 hours and close on your home within 7 days. Request your offer now.
7 Alternatives to Selling Fast for Cash
If the idea of selling your house for cash leaves you feeling unsettled or confused, there are other options. People looking for cash offers typically need to sell their home quickly because of life events, like a divorce or job change, or because they don’t want to deal with a burdensome inherited property.
If these situations don’t apply to you, and you are more flexible with your timeline, you can consider some alternatives to selling for cash:
1. Traditional Real Estate Agent
The most popular way to sell a home is to go through a traditional real estate agent. This typically requires some repairs and staging of your home. This method typically gives you the highest selling price. However, your profit will be cut down by the commission charge from the agent.
2. Discount Real Estate Brokers
If you want to go a more traditional route to sell your house, but you don’t want to spend thousands on real estate agent fees, you should consider discount real estate brokers. These agents offer budget-friendly services that make it easier and more affordable to sell your home.
3. Renting Your Home
If you have had a difficult time selling your home and you don’t want to settle for a lower cash offer, renting your home may be a good option. The cost of rent will cover your mortgage plus the cost of upkeep.
4. Short Sale
A short sale only applies if you owe more on your mortgage than it’s worth. An experienced agent will negotiate with your lender to find a sale price that is lower than they amount you owe. Keep in mind, however, that a short sale can negatively affect your credit and your ability to purchase property. There may also be tax issues and you could get a 1099 from your lender for the loan amount that was forgiven.
5. Flat-Fee MLS Company
A flat-fee MLS company is a company that lets you list your property for sale in the MLS database for a flat fee, no matter how long it takes to sell your home.
6. Employer Guaranteed Purchase Program
If you need to sell your home quickly because of a job relocation, check with your employer to see if they offer a home purchasing program. Some businesses use relocation companies that will buy your house for you.
7. Lower Your Selling Price
By lowering the sale price of your home, you may attract more offers, which could trigger a bidding competition. This can help you sell your home faster.
You need to consider all your options and the financial repercussions of your decision before settling on an offer for your home. Whether you decide to sell fast for cash or choose a more
traditional route, consulting with real estate professionals beforehand can help guide you towards the best decision for your situation.