Many home sellers don’t really understand the meaning of a cash offer. It simply means that the buyer has the required cash ready to be paid for your home. But, as simple as it might sound, a cash offer still involves several complexities, which we are going to talk about in this article.
Table of Contents
How to Sell Your House for Sale By Owner?
• Make Necessary Repairs
• Evaluate Your House’s Worth
• Identify the Right Buyer
• Market Your Property
• Should You Work with Real Estate Agents?
• The Home Selling Process
Benefits of Selling a Home for Cash
How Black Equity Sold Her Home Quickly FSBO!
By the end of it, you will know:
- How to sell a house for a cash offer
- And, why is a cash offer a better option
Let’s get started.
How to Sell Your House for Sale By Owner?
Make Necessary Repairs
While this will probably depend on your home’s condition, fixing the basic stuff like electrical issues is one of the first things you should do. You don’t want to attract buyers only to repel them later. But, it’s important to remember that you don’t want to make things complicated for yourself.
What this means is that even if you think something needs an overhaul, a prospective buyer might not be on the same page. For instance, you might think your floor is better off with a carpet. But, your ideal buyer may end up installing hardwood later. So, focus on the stuff that doesn’t fall under personal preference.
Here are a few common repairs to consider while selling a house for cash:
- Fix loose door handles
- Make sure electrical switches work fine
- Make minor repairs
- Fix water damage
- And, more
You might not want to stop there. If anything that can boost your home’s value, it’s the curb appeal. So, spruce up your home’s exterior and interior and make your house irresistible for buyers. Here are some tips:
- Let natural light brighten up your home’s interior in the daytime
- Put fresh flowers on the entrance
- Place a welcome mat at the front door of your property
- Invest in landscaping
- Apply a fresh coat
Get down on improving your home’s aesthetic as it can not only boost your home’s value but also help you sell it faster. By investing a few hundred dollars, you can make your house irresistible for most buyers.
Evaluate Your House’s Worth
Once you are done with the necessary repairs and aesthetics of the house, you want to come up with a realistic sales price.
Cash offers are convenient because they are a faster way to a home sale. They are cost-effective because you don’t have to spend on home repairs and there is normally no agent commission involved. However, you do need to evaluate your home’s value to avoid being lowballed. Fortunately, there are multiple ways to do that.
You can use a credible online appraisal tool to get an estimate of your home’s value. Plus, check your local market for comparable houses and try to come up with a realistic price for your house. You can also take help from a real estate professional. Working with a professional appraiser would be the right way to go if you don’t have any idea about how this market works.
Pricing your house at a fair market value is imperative if you want to attract the right buyers.
Identify the Right Buyer
Identifying the right buyer is crucial when you are selling a house for an all-cash offer. Especially when you are trying to save your time, resources, and energy. Because you can attract as many buyers as you want on open houses. If they are not the right kind, you would be delaying the closing date.
Here are different types of potential buyers for your home:
Deal Hunters: You might want to sidestep these types of buyers if you want to avoid repairs. Deal hunters generally don’t have the investment to renovate or make major repairs. So, if selling as-is is your plan, these ones are a suitable option for you.
House Flippers: Simply put, flippers just want to resell a house with a fair profit margin. They might not want to go through extensive repairs though. But, a few repairs here and there are no problems with them.
Remodelers: Their name is self-explanatory. They buy a house, “Remodel” it and try to make a healthy profit from its sale. So, if your house needs repairs, and you don’t have the time or energy to make them, these ones are for you.
Whatever type of buyer you are targeting, it’s important to keep your home in a good condition. A few small fixes and aesthetic upgrades can go a long way.
Market Your Property
Now that you know your home’s worth and have identified the right buyer, it’s time to market your property. If you want to sell your home in a hot market, you may not have to market it at all. A seller’s market won’t require big marketing spending from you.
But, of course, when there are fewer buyers and more homes to buy, you would need effective marketing strategies.
Write a great listing description: You cannot expect to market a property, let alone sell it, without writing a killer description. Include the right keywords and write compelling copy; don’t forget to include property photos in your listing.
Hire a professional Photographer: Upload some professional photos of your property to give the virtual viewers a sneak peek into its features.
Should You Work with Real Estate Agents?
You can work with a real estate agent, but that would be a slower and more costly route than a cash sale. An all-cash deal puts more money in your pocket, and does that quickly. If you only want legal assistance, a real estate attorney would suffice.
The Home Selling Process
Let’s say you’ve attracted a few great cash offers and have finalized the buyer. Here are the next steps:
Sign the Contract
When you are ready to accept a cash offer, the first step is going under contract. This just means that you sign a sale agreement contract.
Ask for Proof of Funds
Then, you want to make sure that the buyer has the money you were agreed upon. Ask for earnest money, which is generally around 2% of the sale price. Request a proof of funds from the buyer’s agent. This can be bank or investment statements.
Hire a Title Company
A title company can take care of two important things for you:
- Ensure correct property lines
- See if there are any property leins unaddressed
A lein is a legal notice that mentions any outstanding debts on a particular property. This can include a court case, unpaid taxes, child support dues, and more. In short, you can’t sell a house that has outstanding leins. A title company makes sure that everything is clear.
Have a Home Inspection
This is the last step before closing. Your buyer can submit a request for a home inspection with their offer. An inspection contingency is when a buyer offers to pay for the costs associated with an inspection.
Sign Closing Documents
Even when you strike an all-cash deal, there can be ton of paperwork to deal with. So, you may need to review and sign the following:
Final Closing Instructions: Closing instructions are a list of tasks your escrow company is responsible for. You typically sign it when you open an escrow account with them. But, if you didn’t, now would be the time for that.
Certificate of Title: On this certificate, you promise that you are legally allowed to sell the property.
Title Deed: A title deed is a document that legally transfers the property to its new owner.
Mechanics Leins: This is a document that you sign to ensure that you don’t have any outstanding leins on the property.
Bill of Sale: Any additional items that you and the buyer agreed to include in the deal will be included in this document.
Closing Costs Statement: Here, you state that you had the knowledge of all closing costs ahead of time.
Benefits of Selling a Home for Cash
Working with a real estate agent can be beneficial, but it’s time-consuming and less profitable. With a cash buyer, you get to sell your house fast as there are no lenders involved. Plus, you get to save money as well (count agent commission).
However, you may not be completely equipped to handle the selling process effectively. The good thing is, you can outsource the whole process to a cash offer expert. Fortunately, you don’t have to go anywhere else for that.
At ASAP Cash Offer, we buy houses for quick cash. So, with us, your work is virtually minimized to zero. All you have to do is, pick up the phone. Here are a few benefits that you get working with ASAP Cash Offer:
- Quick sale
- No stress of listing and marketing your house
- More money in your pocket
- No showings
So, there is no point waiting any longer; let’s sell your house quickly and cost-effectively.