If you want to sell your home fast and hassle-free, accepting a cash offer is the way to go.
While a cash buyer is usually easier and quicker to deal with, it’s essential to ask the right questions, so you’re educated as a seller.
Let’s look at some of the top questions to ask cash buyers who make an offer on your home.
What is an iBuyer?
Firstly, you should understand the concept of iBuying, which is a common cash offer buying scenario. An iBuyer is a more recent development in the real estate business, for selling and buying homes.
They use technology to locate, estimate, and make an offer on a home. They take over the sometimes complicated process of selling your home by buying your home for cash, as-is, and then finding a buyer later on.
This can be a stress-free and quick way to sell your home.
Once you’ve agreed to work with the iBuyer, here are the top questions to ask them, to make sure you understand what you’re getting yourself into.
Who is the end buyer?
The investor that closes and funds the sale is referred to as the end buyer.
Some companies use or are the middle man to purchase homes for buyers. As the seller, you want to do your due diligence by knowing who your buyer is.
If you’re working with a middle man, it may be helpful to speak to the end buyer to avoid any issues down the road. The more info you have, the better.
Can you provide immediate proof of funds?
Cash buyers do not go through the same scrutiny as buyers using a lender.
Therefore you want to ensure the buyer you’re dealing with is a legitimate, experienced cash buyer and has the funds to pay for your property.
Many “cash for houses” buyers, however, don’t actually have the cash to buy homes.
Instead, they’’ offer you a contract that grants them an interest in the property. Once they have that contract, they can then go on to try and sell your house to an investor.
Avoid this hiccup by asking for immediate proof of funds. Any bank or financial institution should be able to provide a certified bank statement or similar showing that the buyer has the funds immediately available to purchase your property.
What are the terms of this offer?
The first question you should ask a cash buyer is the terms of their offer.
This includes things like how much they’re willing to pay for your home and what kind of timeline they’re working with for the buying process.
Make sure to get this information in writing so that there are no misunderstandings later on and to ensure that you’re getting a fair offer.
Depending on who is buying your home, some conditions may be required.
Some cash buyers need appraisals. It’s essential to understand what, if any, contingencies the buyer has in their offer.
Cash offers are usually meant to be quick and simple so look out for long contracts with too many contingent clauses.
Do you need a home inspection?
With a traditional buyer, a home inspection is nearly always required by the lender.
If repairs are needed, a negotiation ensues to either fix the home or lower the selling price or closing costs to compensate for repairs.
Cash offers usually include selling the home as-is. This can be a big benefit to a seller whose home needs many repairs as the sale won’t be dependent on any repairs being completed.
Do I need to make any repairs?
Even if the buyer doesn’t have a home inspection performed, you want to make sure they aren’t requiring any repairs before the sale.
An as-is sale means no work needs to be done to improve the property.
Keep in mind that if your home needs major repairs, such as a new roof, or has structural damage, it will affect the buyer’s opening cash offer.
How long is your closing period?
Be sure to ask about the closing process with your buyer. An experienced buyer or legitimate company should make it as easy as possible for you to close.
You should really have to just show up and sign your documents and the deal is done. A typical home closes in about 30 days or longer.
With a cash offer, you should aim for a closing date much sooner than that.
Can I talk to your previous clients about their experience?
If dealing with an iBuyer or other company, be sure to ask or look around for how other customers’ experience with the company went.
You can use Google, Facebook, or the Better Business Bureau to determine if the company has a good reputation and satisfied customers.
Read reviews, and if you can find previous customers reach out to them to hear about their experience. Save yourself a headache down the road by asking this upfront.
Get a cash offer for your home from Simple Home Offer
Going with a cash offer is the best way to sell your home simply and fast.
Save yourself from any unexpected headaches by asking the above questions before you accept a cash offer from a buyer.
Contact Simple Home Offer for more info and to help you through the entire process.
Photo by Olya Kobruseva