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The Cash Sale Process: The Good News

A cash offer is made on a home which is for sale. Sometimes it is for the asking price or a lower offer that is below the estimated or appraised value of the house. Once the buyer and seller agree on a price, the title and deed paperwork must be filed in order to transfer ownership, the seller gets a lump sum of cash, and the buyer now owns the house in as-is condition.

The advantage for the seller here is that the transaction means money in hand and they don’t need to spend time or money investing in fixing up a place, working on its general appearance or meeting buyer stipulations. Most cash sold homes are done so for fixer-upper properties in the hopes of flipping them after increasing the value through renovation and repair. A quick sale without needing the seller to take care of anything is commonly desired.

Lots of times, home sales never reach the closing table because the buyer is unable to secure the financing necessary to meet the agreed upon price. For this reason, cash sales definitely have an advantage for sellers even if it means taking less than the asking price because they generally have no obligation to the buyer before or after the sale.

The Cash Sales Process: The Bad News

The first and most obvious problem with a cash sale in comparison to a conventional sale is that you are more likely to be offered and settle for a lower than expected purchase price. In a lot of cases the buyer is looking to flip the home for a higher value after remodeling, so they are want-and need- to achieve the lowest possible price in order to turn a larger profit. Cash sales do mean faster money with no looking back, but they can sometimes also mean not getting your asking price or even your home’s appraised value.

Another concern is that without proof of funds there is no guarantee that the buyer can actually hold up their end of the agreement. You definitely want to request proof of funds in the form of a printed bank statement dated for the same day or a letter from the bank stating funds are present. However, the even that is not guaranteed until the money is wired into your account or the buyer hands you the cashier’s check at closing. That makes cash buys a target for scammers, so it is vital that you do everything in your power to verify legitimate proof of funds before any property paperwork is signed or any agreements are put into writing.

Overall, a cash buy for your home can mean a faster turn-around time and being out of your old home and getting on with your life sooner, but it also carries a bit more risk than a conventional home sale. Always do your homework before entertaining a cash offer, and always engage a realtor to ensure that the transaction is handled safely and legally.

Are you and Indianapolis resident looking for the best cash offer on your home? Have you had your house on the market for a while and decided a cash sale is your best option? Contact BenBuysIndyHouses.com by visiting our site to see how they can make your cash sale safe, secure, and easy.

This is a guest post written and provided by Ben Grise, Owner of Grise Home and Property Group. To find out more about Ben and how he will buy your home fast and in any condition please visit

Ben Grise, Owner

www.benbuysindyhouses.com

 

 

 

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