One of the main draws of a cash sale is they are much faster than a traditional sale. Just how fast can these sales be? Understanding more about cash sales will help you estimate how long your sale may take.
Why Cash Sales Are Faster
In a traditional home sale, the buyer needs to apply for and get approved for a mortgage loan. This can take weeks or even months to do. Additionally, having a mortgage involved also means you are required to have your home appraised and inspected. In a cash sale, the buyer has all the funds for the sale upfront without being backed by a mortgage. This alone takes weeks off a sale. Once you and the buyer settle on the price, you can immediately begin the sale process. There are a few simple steps to follow, excluding an appraisal and inspection, before you reach closing. A cash sale can also shorten your timeline because many cash buyers purchase homes as is. This means you don’t need to put time into renovating your home before selling.
What to Expect
A cash sale is more streamlined than a traditional sale. One of your first steps will be verifying that your buyer has funds via bank statements and/or good faith money. Next, you’ll need to hire title and escrow companies. The title company will perform a search on the title of your home and then transfer the title to the buyer after the search clears. The escrow company will hold the money for the sale and collect documents throughout the process. Their responsibility is to facilitate the sale for you and the buyer. While inspections are not mandatory in a cash sale, your buyer may still request one to be done. After all of this, you will reach closing day where you and the buyer will sign all the official documents and pay closing costs.
A Typical Timeline
On day one, you and the buyer will settle on a price and you’ll verify the funds. You should also hire the title and escrow companies on day one. The title search can take about three days to complete. If you have an inspection or appraisal done, it will take about a week to schedule and just a few hours to complete. Closing will take a few hours. If all goes smoothly, the entire process can take as little as a week to complete, but typically it will take two or more weeks.
Cash sales are over much faster than traditional sales. If you find a buyer quickly, you don’t need to have your home sit on the market for months. Working with a home buying company allows you to directly find a buyer and get the process started.
Matt Buys Indiana Houses offers you a fast and easy home selling experience. Click here to learn more and get your cash offer.