How Does a Cash Offer Work in a Home Sale?

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When most homeowners sell a house, they typically go the traditional route. They hire a real estate agent, list the house on the market, find a buyer, negotiate a price, and close the sale. While this type of house sale may work in a normal situation, it’s not always feasible or the best option.

For instance, if you are in a situation where you need to sell your house fast, you may not have the time to repair your house and plan for a long, drawn-out home sale that could take months. So, the question is, how do you sell your house fast, and what is the best method? Can a cash offer help you sell your house quickly?

What Is a Home Cash Offer?

Few buyers are even aware that they can get cash for their house without listing it on the market. This type of transaction is known as a cash offer. How does a cash offer work? It’s simple.

Contact a Company That Buys Houses

You can contact a company, investor, or buyer that purchases houses directly from home sellers. The buyer visits your property to do a quick walkthrough of the house. The walkthrough typically takes only a few minutes, and you are not obligated to sell your house.

The House-Buying Company Makes a Cash Offer

If the buyer likes what they see, they will make a cash offer on the house. The offer will be a percentage of the current market value of your house. In most cases, a buyer will make an offer within a day or two of seeing the property, so you don’t have to wait.

Close the Sale and Get Paid

If you agree to the cash offer, set up a time to close the sale with the buyer. You and the buyer will sign the paperwork, and the buyer will give you a check. The buyer typically agrees to pay up to 100 percent of the closing costs.

How Is a Cash Offer Different from a Traditional Home Sale?

There are several ways in which a cash offer is different from a traditional home sale.

  • You work directly with a buyer – no real estate agent.
  • You sell the property as-is regardless of its condition.
  • The closing period is shorter – typically seven to 21 days.
  • You can sell your house regardless of your personal or financial situation.
  • You work with a pre-qualified, professional buyer that pays cash.

When you sell your house on the market, it can take months to find a buyer interested in the property. Even if you find a buyer, you still have to wait for them to get qualified for a home loan. When you work with a cash home buyer, you sell your house to someone who is already pre-qualified and knows the process.

Is a Cash Home Safe and Legal?

Like any other industry, the real estate market has good apples and bad apples. Generally speaking, a cash sale is safe and legal. However, you do want to make sure you are working with an experienced and honest buyer that has a solid reputation in your community.

So, before you sell your house to a buyer, make sure you do your homework. Look at their references and customer reviews. Check out their website and even look for them on sites like the Better Business Bureau (BBB).

Also, some states do require that a real estate agent or attorney be involved in a real estate transaction. However, these rules do not necessarily apply in all situations. Check your state’s laws before you sell your house.

What Are the Benefits of a Cash Home Sale?

There are several advantages to selling your house as-is for cash.

  • No realtor commissions
  • Little to no closing costs
  • No repairs or upgrades
  • Sell and close when you want
  • Walk away with no strings attached

Plus, you can sell your house regardless of your current situation. Companies that buy houses will work with sellers in all types of circumstances: bankruptcy, foreclosure, divorce, new job, relocation, downsizing, probate, damaged house, etc.

Get a Fast Cash Offer from Ernest Buys Homes

If you need to sell your house, then check out the benefits of a cash home sale. Call Ernest Buys Homes today at 865-292-2499 and get a fast cash offer.

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