Property values have taken off in many markets to levels that haven’t been seen in over a decade. If you want to take advantage of the financial situation and the market’s growth, now is a great time to explore and sell your property.
First, pay attention to the slight differences that occur when working with a cash buyer. If you’re prepared, then you’ll be able to manage your expectations and clear any potential hurdles for an easier closing. Nonetheless, here are six steps to consider when selling your property to a cash buyer.
Step 1 – Finding and Qualifying Buyers
Finding the right buyer is the first step in selling your house for cash. Thanks to the power of the internet and the growth of social media, it’s a lot easier to advertise your property. The first thing you need to do is post a FSBO (For Sale by Owner) listing online. You can also do a google search for investors in your area and reach out to them to start the selling process. Most cash buyers are very responsive and willing to make an offer if you are interested in one.
Once you find interested cash buyers, expect the offers to come. Cash buyers for your property will come up with a good offer within 24 hrs., especially if they have walked through the property. Getting a few different offers/opinions is always a good idea and helps when it’s time to make a decision. The right offer will include a balance of price, inspection period, closing timeframe and any special terms.
Quick Tips on Vetting Your Potential Buyer…
- Do some research on testimonials and reviews on the internet.
- Check how long they’ve been in this business. If they’ve been investing for a long time, then they are more likely to close a deal.
- Are they local?
Accepting an offer that doesn’t make it to the closing table can waste your time and money. It also prevents you from negotiations with qualified buyers. If you would like to receive an offer on our property, you can Reach Us Here
Step 2 – Comparing Offers
Inspection Process
You can expect an inspection from a buyer right after you accept an offer. The time period usually starts the day after the offer has been signed by both parties. It’s important to be aware of any issues before you get into the transaction. The inspection, which is an important negotiating tool for the buyers, can last from half an hour to numerous hours depending on the inspector. You should almost always expect a list of deficiencies with the property once inspection is complete. A little give and take may be needed, but let the market be your guide on where you can take a hard line and where you can concede.
Earnest Money Deposit
Every contract has a line where the EMD (Earnest Money Deposit) is indicated. EMD is used as a way to gauge the interest of the buyer, a down payment. A cash buyer that’s interested in a property should be able to produce the EMD within 72 hours. For example, the contract is accepted on Tuesday, the EMD should be in escrow by Friday. If they’re unable to, this is a red flag and may be a good time to consider a backup option. In most cases if the buyer breaks the contract in any way without justification then you may be entitled to the EMD.
Closing Time
There are a few options to weigh when closing. When a contract is accepted you can either close on a specific day or close “X” amount days. Closing in your time frame gives you, as the seller, the ability to choose any tentative days within 10-90 days, during which you can close the escrow.
Step 3 – Accept Offers
After step one is completed, it’s time to accept an offer. Sign a hard copy version or use an online contract signing services like dot loop to complete the contract. Once both sides have signed, it’s time for the escrow and title companies to take over the transaction from this point. They are used to research any questions with title and coordinate communication. The transaction timeline begins after you accept an offer so make sure every minute counts.
Step 4 – Monitor Major Deadlines/Sign Paperwork
Because of the associated paperwork, sellers often avoid selling their own. Paperwork can be overwhelming but the process can be eased with a transaction coordinating company or an efficient escrow. Disclosures are required when selling your property – it’s also meant to give the buyer a preview of what they’re purchasing. If you’re not familiar with this, work with a local expert like title or escrow so they can assist with the necessary disclosures needed.
Step 5 – Closing the Deal
Several documents are needed to complete the closing. Enlist the services of a real estate attorney – they can expedite the closing process and offer extra protection. Even the most experienced real estate investors are not versed in every contractual scenario. It is always a good idea to have an experienced real estate attorney on your side.
Now is the perfect time to take advantage of a cash offer and explore the options of selling your property and knowing the process will make for a smooth and comfortable transaction!
