Understanding A Cash Offer For Your Home
Simply put, a cash offer is an offer to purchase your home with funds that are not dependent on the buyer receiving external financing. In other words, a cash offer is a purchase offer that is not subject to approval by a bank or other financial institution.
Working with a cash buyer can be a great way to sell your home faster than you ever thought possible, and the process of selling a house for cash has very few moving parts. There’s no unnecessary paperwork to fill out, no loan officer to hold up the sales process, and no real estate broker to try and take a cut from your sale proceeds.
Generally speaking, people love the following things about selling their home for cash:
- The ability to get your money fast
- No listing fees or agent’s fees
- Direct interaction with the buyer
- No need to do any home repairs before you sell
- Minimal paperwork
The 4 Steps To Successfully Close An All-Cash Sale
Step #1: Finding The Right Cash Buyer
The majority of cash buyers in Irving, Texas, belong to one of the following categories:
- Private investors
- Real estate companies that specialize in buying homes without external financing
- Wealthy homeowners that have the title to a neighboring property and would like to buy an adjacent lot
The advantage of dealing with professional investors and specialty companies is that they are more likely to have their operations in order. Your home probably won’t be the first cash deal that your purchaser has completed, so you can expect things to run smoothly.
Some professional cash buyers will often purchase your home with the intention of flipping it as is within a short period of time, but others are willing to make some necessary upgrades and then relist it for a higher price.
In some cases, a cash buyer might be interested in your home purely for the value of the lot. If you have a home that needs a lot of repairs, then you’ll want to target this type of buyer in your search.
There is certainly no shortage of rehab and flipping companies in Texas, but you need to know exactly where to look if you want to find a buyer that will give you a fair deal. Searching public ownership records can be a good source of leads.
If you find a company that owns several properties near you, then it might be a good idea to reach out to them to see if they would be interested in putting in a cash offer for your home.
Some cash buyers will even put small “bandit signs” in the front yard of their properties to let prospective sellers know that they are looking. These signs will often say things like “We Pay Cash For Your Home” and have the buyer’s phone number and contact information at the bottom.
If you see one of these signs around your neighborhood, then you’ve probably got a good prospect on your hands.
Instead of relying on public records or looking for physical signs in your area, you can also do a Google search for a term like “Irving TX real estate cash buyer”.
Bonus Tip: Take note of companies that are advertising on the results page for this search term.
If a real estate company or an investor is spending time and money to run an advertising campaign on Google and make sure their website shows up when you search for cash buyers in Irving, then there’s a good chance that they’ll be willing to at least take a look at your property.
If you would rather hire somebody to find a cash buyer for you, then working with a wholesaler may be a viable option. Wholesalers are companies that charge a small fee for playing matchmaker between you and a cash buyer.
Fortunately, this fee is usually taken out of the selling price after the deal closes. Since most wholesalers only get paid if they succeed in finding you a buyer, their incentives are typically aligned with yours.
Whether you are using a wholesaler or sourcing a buyer yourself, don’t be shy about doing some due diligence and investigating each of your leads in more detail. Look for testimonials or references from sellers that have done business with your buyer in the past.
Step #2: Reviewing Your Offer
In some ways, getting a cash offer is actually the easy part. Once you have found a prospective buyer that you’re willing to do business with and have received an offer, you’re going to need to do a thorough review of the numbers.
It’s easy to find a list of recent selling prices in your area, but your personal situation is often going to determine what kind of offer you can take.
- If you’re facing a foreclosure or you need the money fast for any other reason, then getting that cash in your pocket is probably more important than fetching top dollar for your home. Also, the buyer’s plans for your home will play a big role in determining their offer price.
- If your buyer plans to rehab your house, then you can expect them to build the cost of those repairs into the amount that they offer. If you’re dealing with a company that just wants the land and is going to tear the house down regardless, then your home’s condition will be much less of a factor.
Every buyer has their own process of pricing out their offer, so don’t be surprised if you end up selling your home for significantly more or less than the average in your neighborhood.
Step #3: Signing The Sales Agreement
After reviewing your offer, the next step in the process of selling a house for cash involves signing a purchase agreement to clarify the terms of the sale. Most serious cash buyers will have a standard purchase agreement that they like to use, but you’re well within your rights to write one up yourself.
A typical sales agreement includes:
- The timeline of the sale and a clear description of all deadlines
- The selling price
- Any deposit requirements or additional financial arrangements
Some cash buyers will want you to have an attorney review the sales agreement before you sign it, so it’s helpful to have a good lawyer on standby.
Since a bank won’t be involved in the sale, you and the buyer will have complete control over the terms of the agreement.
If the purchase is subject to any contingencies, then make sure to spell all of them out in the contract. It’s better to be too cautious than too trusting, and an experienced purchaser will understand that you want to cover all of your bases.
Before you sign the sales agreement, you’ll also want to notify any related third parties that may end up being involved in the deal. If your neighborhood has a homeowner’s association (HOA), for example, then the HOA may need to approve your buyer before the deal can close.
Be proactive in taking care of these details before you move forward.
Step #4: Closing The Sale
The process of selling a house for cash moves significantly faster than completing a loan-backed sale, so you can expect to close shortly after the sales agreement is signed. Two weeks from the time you sign the purchase contract is a good benchmark, but some cash deals can close within ten days.
You won’t be dealing with a financial institution at any point in the process, so there won’t be very many forms to fill out.
Also, it doesn’t hurt to have an attorney review everything one final time before you put the finishing touches on all of the closing documents.
Final Thoughts On Selling Your Home For Cash In Irving
Compared to typical homebuyers, cash buyers bring their own financing and are ready to close the deal fast. The most arduous part of the process is typically finding a buyer in your area, but Cash Home Offer USA is here to help.
If you currently own a home in Irving, Texas, we can provide you with a same-day offer and a price you’re going to love.
To make matters even easier for you, we cover all of the closing costs and let you pick your own closing date. To receive an offer within the next 24 hours, just enter your address and primary contact information into our online form right now.
If you’d rather pick up the phone and give us a call, then dial 888-724-9603.
We look forward to hearing from you today.