Your Home Sold Guaranteed Realty - Coldwell Real Estate Services

How Does Selling Your House for Cash Work?

How Does Selling Your House for Cash Work?

How does selling your house for cash work? Selling your house for cash is different from traditional real estate transactions involving mortgage financing. Cash sales are faster, more streamlined, and require less paperwork.

In this post, our Ocala realtors at Your Home Sold Guaranteed Realty - Coldwell Real Estate Services will provide a step-by-step guide on how to sell your house for cash.

Key Takeaways:

  • The first step of selling your house for cash is to research and connect with reputable cash buyers or real estate investment companies in your area.
  • You should expect the offer to be less than you’d otherwise get with a financed offer– it could be anywhere from 10% to 20% lower than the initial asking price. 
  • If you’re selling to an investment company or iBuyer, do some research to see if the company is reputable. If you’re selling to an individual buyer or investor, ask for a proof of funds letter.

How Does Selling Your House for Cash Work? – 7 Steps

Find a Cash Buyer

The first step of selling your house for cash is to research and connect with reputable cash buyers or real estate investment companies in your area. Cash buyers can be individual buyers or investors, investment companies, or iBuyers.  

Ultimately, selling to an individual buyer, investor, or investment company is the best way to get the highest cash offer possible. They’ll evaluate your property’s condition, location, unique features and characteristics, and market value to determine a fair purchase price.

iBuyers, on the other hand, use an algorithm-based method to make their offers, which can be as low as 70% to 80% of the home’s fair market value.

Evaluate the Initial Offer

Next, the buyer will make an offer to purchase your home for cash. You should expect the offer to be less than you’d otherwise get with a financed offer– it could be anywhere from 10% to 20% lower than the initial asking price. In exchange for this discount, you’ll get the other benefits that come with cash offers, like speed and convenience. 

Another benefit to cash offers is that they don’t come with lender-required contingencies related to financing or appraisal. However, the buyer may still choose to add their own contingencies.

Research the Buyer

If you’re selling to an investment company or iBuyer, do some research to see if the company is reputable. Reviews or testimonials from previous clients can give you an idea of how the company works. If you’re selling to an individual buyer or investor, ask for a proof of funds letter to make sure they have the necessary funds to purchase the property. 

Start Negotiations

Review the buyer’s initial offer and determine if the price and terms align with your sales goals. If they don’t, you can negotiate with the buyer for a more favorable deal. However, keep in mind that if you’re selling to an iBuyer, you won’t be able to negotiate at all.

Once you agree on the terms, price, and closing timeline, you’ll need to accept the cash offer in writing by signing a purchase agreement. After that, you’ll move into the closing process.

Wait for the Buyer to Conduct Due Diligence

Most cash buyers will conduct due diligence to make sure the property is in good condition and doesn’t have any legal liabilities. This includes a title search, paying for a home inspection, and hiring a professional appraiser. Without a lender’s involvement, these steps can be completed much faster compared to a financed sale.

Prepare for Closing

As the buyer does their due diligence, you’ll have to gather necessary paperwork like the property deed, title documents, disclosure forms, and any other documents relevant to the home. You’ll also have to coordinate with the cash buyer to schedule a final closing date that works for both parties.

Transfer Ownership

On the final closing date you agreed upon with the buyer, you’ll both meet along with your realtors and real estate attorneys. During this meeting, you’ll finish signing any remaining paperwork, transfer the funds, and hand over the keys. 

At this point, the ownership of the property is legally transferred to the cash buyer. You’ll receive the agreed-upon cash payment through a cashier’s check or a wire transfer.

Scott Coldwell and Our Ocala Real Estate Team Makes it Easy to Sell for Cash

How Does Selling Your House for Cash Work?
Scott Coldwell

If you want to sell your home for cash in Ocala, Florida or other parts of North Central Florida, you’ll need an experienced realtor who’s handled cash transactions before. At Your Home Sold Guaranteed Realty - Coldwell Real Estate Services, Scott Coldwell and our team can sell your home fast and for top dollar. 

With 20+ years of experience in the industry, we are deeply familiar with the local housing market in Ocala and know how to market and price your home for a successful sale. Plus, with our seller guarantees such as our Guaranteed Sale Program, you can ensure a risk-free home-selling experience.

Contact us today at 352-290-3512, send a message to [javascript protected email address], or use the form on this page to learn more about working with our team. Selling your home doesn’t have to be stressful when you work with the best realtor in Ocala and all of North Central Florida!

To Discuss Your Home Sale or Purchase, Call or Text Today and Start Packing!

Scott Coldwell $ 223 SW Broadway St, Ocala, FL 34471 352-290-3512
Scott Coldwell, Broker/Owner
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