How Quickly Can a Cash Buyer Close?
Selling your house to a cash buyer is about as close to instant gratification as you can get.
You’ve probably heard the home-selling process is faster with a cash buyer. But why is it so much quicker?
There are many reasons why a cash buyer can close the deal on your home faster than the traditional real estate market.
We’re going to walk you through the steps it takes from contact to closing when it comes to working with a cash buyer.
What’s the Cash Buyer Timeline from Contact to Closing?
When you sell your home to a cash buyer, you are eliminating the entire lending process. There are no appraisals, home inspections, or last-minute underwriting issues. Because you’re not waiting on bank approval, the process is simple and fast.
Here’s a timeline of what happens from the moment you contact a cash buyer to the minute your house is sold and the deal is closed.
The initial consultation is a phone call between you and the cash buyer so they can get a description of the house. They will want to know the home’s condition, your financial situation, and your closing expectations. The call usually lasts about 5-10 minutes.
During the evaluation stage, the cash buyer will walk through your property. They’ll take some basic room measurements, as well as look in the basement, crawlspace, and attic. This step takes about 20-30 minutes.
The cash buyer will then fill out a notecard and go back to the office to work on a construction estimate. They will determine a fair amount to offer you for the house.
Next, you’ll get back on the phone for another 5-10 minutes with the cash buyer, who will explain your options and make an offer. There will not be any closing costs. You can leave the property as-is. And the deal can be done at your convenience.
Once you agree on a price, the cash buyer will draw up a contract for you to sign in person or electronically. Then, they’ll tell you what the next steps are before closing.
Note: To make sure the cash buyer has the money, most sellers will ask for earnest money upfront. That’s typically 1-2% of the sale price. Sellers may also want to look at bank or investment statements for proof of funds.
When the contract is signed, you will get a copy of it. The cash buyer will also send it to a company to conduct a title search and get in touch with you to schedule the closing. The call should take about five minutes.
Note: If issues come up concerning liens or title and estate issues, this would add more time to the process.
Closing can typically take place within a week. The goal is to provide the seller with peace of mind and a fair offer that removes all the hassles of selling. The cash buyer takes care of all the details.
When you add up the time from start to finish, it should take seven to ten days to sell your house to a cash buyer if everything goes according to plan. Compare that to 30 days—minimum—for a financed purchase! A house can spend several months, even years on the market.
What Do I Bring to Closing?
You’ll need to bring the same things to closing with a cash buyer that you would in a traditional home sale, such as:
- Government-issued ID
- Deed (if the home is paid for)
- Keys, garage door openers, and codes for keyless entry and alarm systems
- Certified or cashier’s check that pays any costs not covered by the proceeds
You should be notified by your escrow company ahead of time whether you owe additional funds.
Will I Really Get Cash for My House?
No. It’s not like someone comes in with a briefcase full of bills and hands it to you in exchange for the keys. This isn’t Deal or No Deal.
The term “cash offer” means the home is being bought outright with no financing. A closing usually involves a cashier’s check or transferring funds electronically.
How Fast Are Cash Buyers?
Now you know just how fast cash buyers can be and how long each step takes in the home-selling process.
From consultation to closing, the whole deal can be done in as little as seven to ten days. The elimination of financing, appraising, inspections, and other steps of the traditional real estate market make the timeline shorter.
Other advantages of working with a cash buyer include:
- Lower risk of the deal falling through
- Fewer parties involved
- Less paperwork
If you need to sell your home fast, New Again Houses can make you a fast and fair offer right away. Contact us today to get started!