Thinking of Selling Your House to a Cash Buyer: 7 Questions to Ask First
House prices continue to rise, with 2021 being the highest on record. There is no time like the present to sell your home. But how can you guarantee a fast sale?
An increasingly popular way to turn your keys in is to sell to a cash buyer. You can sell your house fast with this method. Essentially cash buyers are companies that buy houses for cash or someone who can afford to purchase homes without the need for additional funding, such as mortgages.
Does a cash buyer appeal to you? If you want to sell your home fast for cash, you can reap many benefits. Benefits include no house chains, mortgage issues, and a faster process.
However, you can also fall foul to disadvantages if you do not ask the right questions. Disadvantages include receiving a low offer on your home.
Read on to learn the top seven questions to ask a cash buyer before agreeing to an offer.
1. Are You the End Buyer?
Many companies buy houses for cash as the middle man. They are acting on behalf of the end buyer, which is convenient for the buyer but not always convenient for you if you are not aware. You want to guarantee there are no problems with the sale later down the line by checking who is the end buyer.
Always check whether the cash buyer is the end buyer or purchasing for the end buyer. If the company is the middle man, you want to understand their process in-depth or speak to the end buyer directly to clarify any doubts. Many companies that buy houses for cash do so to flip them and make a profit, so this could also be the case if a company reaches out to you.
If you have a private cash buyer, consider enlisting a professional service or agent to help draw up contracts, ensure you cover all legalities, and have a drama-free process.
2. Will the Property Be Purchased as It Is?
Cash buyers continue to increase in the US. Between the months of January and April 2021, one-third of all home purchases were made in cash.
One of the biggest benefits for sellers and buyers is quick sales. However, it is essential to clarify whether the property will be purchased as-is or not. Purchased as-is means you sell your house fast in its current state.
You do not have to worry about repairs or any of its faults; the buyer is happy to purchase the home in its current condition. The positive is that you do not have to worry about spending time or money on mending your home.
However, some cash buyers will not purchase as-is, so always check before proceeding with an offer.
3. What Is Your Cash Buyer Offer?
You want to know the offer before you proceed with any cash buyer. A cash offer can typically be lower, especially if the cash buyer is purchasing as-is. However, you are also receiving the benefits of a quick sale and no need to worry about repairs.
An excellent place to start is to check your home’s value subtract benefits and any commission to compare to the offer. Check out other home’s in the area or use an online tool to calculate your home’s worth. Also, consider how much any work will cost in your home to check it is a fair offer.
But do not stop at just getting a verbal offer. You need to ensure the offer’s legitimacy, so be sure to ask for it in writing. Check there are no hidden fees or other closing costs that you need to consider, such as commission.
Most of the time, cash buyers will cover the closing costs, and you will have to pay a prorated portion of property tax, any leftover mortgage payments, and state tax.
4. What Are the Terms of the Offer?
A cash offer may be appealing, but do not forget to check the terms and conditions before you sell your house fast. You might have to adhere to certain conditions, and these can differ between companies that buy homes for cash.
For example, you might still have to get an inspection, even if your home is being purchased as-is, while offers will waive the inspection. If the inspection is waived, the risk may warrant a lower offer. Some cash buyers may also want a home appraisal.
You want to know the terms before committing to a cash buyer. Some of these terms could be negotiated, depending on the requests. However, be wary of huge contracts with many contingencies, as cash buying is meant to offer a simple and effective process.
The terms and conditions of the offer will also help you determine the legitimacy of the offer and prepare for closing. You want clear terms on closing times, contract formats, and payment plans. For example, if the cash buyer is not using a standard contract, you might want professional help to review it.
Also, you want to know how you will be paid and if the cash buyer will deposit any earnest money in advance. If they do not provide an earnest deposit, it’s essential to know how they indicate their commitment to the sale and how quickly this can happen.
5. Do You Regularly Buy Homes for Cash?
It is essential to ask about a cash buyer’s experience, especially if you use a company that buy homes for cash. You want a company that has the experience and knows how to care for the homes it deals with. While every company starts somewhere, be wary of companies with no experience, as you could be their test-run.
A reputable cash buyer company will be happy to disclose their experience and share their knowledge of buying homes in your area. Many companies that buy houses for cash have partners in local areas to efficiently close the sale with the proper knowledge and expertise.
You can also ask about their process for evaluating homes to understand their offer further. An experienced cash buyer will be able to buy your home with sensitivity and compassion, understanding that there are many different reasons why you want to sell your house fast.
If you opt for a company that buys homes for cash, you can also check their licenses when you ask about their experience. You want to work with a legitimate company to avoid issues later on.
6. Do You Have Customer Reviews to Share?
A cash buyer may look great on paper, but do their reviews match? It can give you peace of mind to check customer reviews, so do not hesitate to ask this question. A legitimate company should list reviews or provide a link to independent reviews.
Along with reading customer reviews, you can check independent reviews online to check everything matches up. Another helpful website to check is The Better Business Bureau (BBB). This website shows whether the BBB accredits a company or not, and it lists reviews.
Be wary of a company with many negative reviews, even if they have a good excuse for why! Also, be aware of companies that do not have any reviews. If you go with a private buyer, ask for some references to check their legitimacy.
If you want the best experience possible, it is best to opt for a reputable company. You will avoid surprise costs and unpleasant experiences.
7. What Is the Closing Process?
Be sure to check the closing process before you use a company. Do they offer a sight-unseen offer? What paperwork do you have to prepare or sign?
A reputable company that buys homes for cash should make the process as simple as possible for you. Generally, you should be able just to show up and sign once you have checked the documentation.
Also, be sure to check the offer process. Do they offer same-day offers, or do they need several days? You want to know a time frame to have realistic expectations of how the closing process will work.
The average closing house sale takes around 30 days, and many issues can arise, such as sales falling through with traditional home selling. So even if the company needs several days, be patient! You can use the time to pack and prepare for your next move.
You can also ask if there is any follow-up after closing and how you can contact the cash buyer if any issues arise.
Buy My House For Cash
A cash buyer can be the key to selling your house fast or lock you into a difficult situation. The good news is that these questions will help you find a cash buyer that suits your needs.
Are you looking to sell your house fast with a reputable company? Stewardship Properties is here to help. We have purchased over $116,875,000 worth of properties.
Simply submit your address, review the sight-unseen offer, then pick your closing date. It is that simple! You will then receive your closing proceeds, which do not include any commission or fees.
Are you interested in learning more? Contact us today to learn more about our process.