Preparing for Selling Your House for Cash
You may find yourself with a big and immediate need for cash, and the only way to meet it is to sell your home. Maybe you bought a house as an investment, but things didn’t go as planned. Or you may have inherited a home you don’t really want and you want to dispose of it quickly. Whatever is your motivation behind selling your property for cash, there are important matters you should know or be prepared for.
Types of Deeds
In any real estate transaction, the deed is the central document. This states the name of new property owner after the sale is concluded. Warranty and quitclaim are the two most common types of deeds. A warranty deed guarantees that a house is free of any liens or encumbrances. A quitclaim deed, on the other hand, doesn’t make any such assurances.
When you are ready with the details of your property, you make the sale process even quicker. As expected, any buyer will want to know more about the property they’re interested in. Make sure information is on hand anytime.
Scammers are everywhere, such as in the real estate industry. In short, know the background of your potential buyer.
You should also be vigilant and watch for the signs of a scam. For example, if someone sounds eager to buy the property without seeing it first, that’s suspicious. Also watch out for those who won’t even try to haggle on the asking price, or those who only talk to you with emails. Don’t worry, there are more legit house-for-cash buyers than not, and as long as you do your homework, you’ll be safe. Usually, you can choose between established and reputable investors, and individual buyers.
A cash house sale is reasonably for a lower price than the property’s traditional market value. This is totally understandable however, considering that the investor will buy your home in the exact condition it’s in. That means you will not have to spend a penny because these investors will usually shoulder most, if not all, of the costs (for inspection, appraisal, etc.). Hence, everything will even out and you can still get a pretty good deal in the end.
Once the deal is done, you’d like to make sure that all copies of the paperwork are available, neatly filed, and stored in a safe place. This is very important, especially when handling tax consequences of the sale. As you might expect, the IRS will want to know about any cash that you made with the sale.