There are many different cash buyers out there: house flippers, home buying companies, private investors, individual buyers, etc. Depending on the buyer, the closing process will look different. In general, however, cash sales tend to have much quicker closing processes compared to traditional home sales. Keep reading to find out why.
In a traditional house sale, the seller often has to filter through multiple offers on the home. There are lengthy negotiations that may require repairs or a certain move-out timeline. Furthermore, transactions are never guaranteed: The buyer may walk out on the deal at any given time during the closing process, or they may not get their loan approved. On the other hand, cash sales tend to come with much more certainty. Investors are much less willing to back out and most will have the capital necessary to purchase the home in full without issues.
A cash sale is called a “cash sale” because the house is paid for in its entirety. In other words, the buyer doesn’t have to take out a loan to pay for the home. Without the need for a loan, there is no need to get approval for a mortgage from a lender. Without this step, the closing process goes much faster in a cash sale compared to a traditional sale given that the approval process for a loan can take a long time.
Given that a cash sale tends to involve a much simpler process overall, the amount of paperwork you will need to review and sign is relatively minimal compared to a traditional sale. Furthermore, the seller rarely has to pay for closing costs. Unless legal complications or other issues arise, it shouldn’t take longer than an hour or two to finalize all the paperwork. Within a short amount of time, you should be able to walk away with your much desired cash.
So, how long does the whole process usually take—from start to finish? Again, while it depends on the type of cash buyer you are working with, the whole process should rarely take longer than a month or two. In fact, if you are working with a home buying company, you may be able to close on the sale in as little as seven days!
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