Home prices are dropping for the first time in seven years in Denver and the surrounding area. With this drop, more buyers can purchase their new home for cash.
As a seller, a cash buyer can be beneficial if you need to sell your home quickly. The buying a house with cash process works slightly different than a typical sale that involves a lender.
Keep reading to learn how easy it is to sell your home for cash!
What Is a Cash Offer?
An all-cash offer doesn’t mean that someone is going to hand you a bag full of bills. It is actually illegal to buy land for literal cash.
A cash offer is someone offering to buy your home without the financing help of a bank. Typically there are two types of cash buyers, private individuals, and real estate investors.
Buying a House with Cash Process
The first step to completing an all-cash deal is to sign a contract with the potential buyer. This is how you accept their offer of purchase. This agreement is called a Purchase and Sale Agreement.
The next step you need to take is to verify that your buyer actually has the money and is able to give it to you. Most savvy sellers ask for an earnest money deposit. This is typically 1% to 2% of the total sale price.
To obtain proof of their funds, ask for a bank or investment statement.
Title and Escrow Companies
The state you live in will dictate whether you or the buyer will select the title and escrow companies. The title company researches the property and makes sure that the property lines are correct.
They will look into the history of the title to ensure that you, the seller, are the rightful owner. They will also look for any potential problems with the title, like outstanding liens.
Once they are sure that the property and title are good, they will issue title insurance. On the closing day, they will make sure that the ownership of the property officially changes hands.
The escrow company facilitates the transfer of funds and manages all of the closing documents. This neutral third party will hold the funds from the buyer while ensuring you the seller complete all required documents.
When both parties have satisfied their duties, the funds get released to the seller, and the title gets released to the buyer.
Many buyers, and especially cash buyers, will want a contingency in the contract stating that their purchase is dependent on the passing of a home inspection.
This home inspection looks at the condition of the home. If anything doesn’t pass, the buyer may negotiate to have the home repaired or the sale price reduced.
When there is no lender approval process required, you can close on the home a lot faster. Sometimes you can close in as little as two weeks.
Sell Your Home Today
The buying a house with cash process is a relatively simple one. If you are facing a situation where you need to sell your home quickly, then a cash buyer is a smart option.
We have been buying homes for cash in Colorado for years and have the knowledge and experience to make the sale of your home go smoothly.
Sell your home today by reaching out to us. We buy properties in any condition and make cash offers.