How Does a Cash Home Sale Work?

Key, Home, House, Estate, Business, Mortgage, Real

Have you been pondering selling your Sacramento home for cash? Your friends tell you it’s too good to be true — but you’ve heard it can be faster than a traditional sale. What’s the truth?

A cash home sale can be a lifesaver if you’re about to enter foreclosure, inherited a property you don’t know what to do with, don’t want to complete expensive repairs, or are in another challenging spot. And the process is usually a whole lot faster.

Don’t believe us? Let’s walk through the main steps of a cash home sale in the Sacramento area.

1. Accept the Offer and Sign a Contract

If you sell your home on the open market, you need to find a Realtor, complete home repairs, stage the property, hold open houses, and…. well, you get the idea. The prep work is a mile long. If you’re selling for cash, many buyers will accept the home as-is. That means you can skip to accepting an offer.

Once you and the cash buyer agree upon a reasonable price, you can sign a Purchase and Sale Agreement contract.

2. Hire Title and Escrow Companies

The next step is to verify proof of funds, which you can do on your own or hand over to the escrow company. The escrow company’s job is to handle the transfer of money from the buyer to you. Even though it’s called a “cash” offer, your buyer still has to wire the funds or give the escrow firm a cashier’s check. It’s actually illegal to buy a home using actual cash.

You’ll also need a title company. This group makes sure your home is free of liens (or that the lien gets addressed in the sale), and double checks the property lines on the home being sold. They also issue title insurance and confirm that the property changes hands on closing day.

3. Sign Documents and Hand Over the Keys

Since you probably won’t have an inspection or other contingencies to deal with during a cash home sale, once escrow can confirm the funds — you’re pretty much ready to close. From there it’s just a matter of making sure the money gets transferred to your account and the closing papers get signed. You’ll need some things to close, including a government ID and a copy of the deed.

Of course, at this stage you’ll also have to have another living situation figured out. Be aware that a cash home sale can often close within two weeks. Before you accept a cash bid, make sure you have an idea about where you’ll go. Or, you may want to work out a deal with the buyer where you can rent out the home for one month while you arrange new housing. You’ll have the home from your sale in hand and be better prepared to arrange a new living arrangement.

Cash home sales can be a great alternative to traditional home sales. If you prioritize the speed and ease of the sale to getting the highest bid — it could be for you. Without the hassle of inspections and reviewing multiple offers, you can get rid of a problem property in no time flat.

Interested in having a reputable Sacramento company check out your home for a possible all-cash sale? Contact California Family Homebuyers today to learn more about selling your property in as little as 7 days.

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