Cash Offers For Your House: How Do They Work?

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It’s no wonder people look for alternative methods of selling their home, given how stressful selling a property can be. In fact, selling a house without a real estate agent has increased in popularity in the past few years. One of the most appealing options is selling to cash buying companies, which promise to make the whole process easier and faster.

There are many benefits to selling to a cash home buyer in Washington. Home buying companies offer a quick, guaranteed sale. They make a cash offer on your house as-is (no need to fix or repair anything) and if you accept, you’re promised a completed house sale, and the cash in your bank account, within a week. But, how are home buying companies able to offer legit cash? How does the process work?

What Is a Cash Offer?

A cash offer refers to an all-cash offer made by a purchaser to the seller of the property. When you hear this term, you may imagine the seller arriving at your property with a briefcase full of cash, but this is not what it means. An all-cash offer means the purchaser does not need a mortgage or any other type of financing to complete the transaction. 

A cash buyer enjoys an advantage over other buyers who need a mortgage because they can close the transaction fast without an uncertain underwriting process. For a mortgage buyer, it is uncertain that the lender will approve the loan. That factor makes the seller more attracted to a cash offer that comes with no strings attached and fully guaranteed.

How The Process Differs With Cash Offers

Closing

The closing process on a cash offer is much more simple. The buyer signs the settlement statement, title, and deed, hand over a check, and receive the keys. Paperwork is significantly reduced since there is no financing. The closing costs are also lower since there aren’t any lender fees attached.

Appraisal

Appraisals are typically mandated by the lender, so without one, a buyer doesn’t have to worry about them. However, if the buyer is looking to guarantee returns, they may still want an appraisal.

Contingencies

There are almost no contingencies with cash sales. Buyers don’t need the financing contingencies and there may not need for a sale contingency either. An inspection contingency may be requested.

Title and Escrow

A title and escrow company will still be needed to handle the transaction.

Prove Financial Capability

With a mortgage loan, buyers usually come to the table pre-approved, meaning the lender has already determined they have the financial capacity to handle the projected mortgage payment. On a cash sale, the buyer needs to prove their financial capability. 

How Does The Process Work?

Most property buying companies follow a similar process when buying a house. You contact them, they ask a few questions that will help them figure out what your house is worth (location, condition, what similar homes have recently sold nearby, your property’s development potential, etc. Then, they’ll make you an offer and if you accept it, close the deal within days.

This new method of selling is possible because house buying companies are proceedable buyers, meaning that they already have the necessary funds in place for an immediate sale. They sell houses, restore them, and then resell them for a higher price, getting profit. These companies are 100% legal.

Advancement in technology has supported the rise in companies that can buy your house. They are able to exist purely online and with property data, they can efficiently and effectively provide a seller a quick offer for their home. This has resulted in a more streamlined house selling process and a less stressful experience.

Some cash property buyers are able to do this completely remotely using mapping software and publicly available property information. Others, ask you for a virtual tour of your property to determine its worth. This method that these companies prefer has represented an advantage since it helps maintain social distancing. 

Sell Your House For Cash

There are many benefits to selling a house for cash. It’s an easy, fast, and guaranteed sale. No hidden fees and costs and you can sell your house as-is. If you’re looking for a cash home buyer in Washington, I Will Buy House may be for you. We buy houses in Seattle and have been helping local homeowners since 2015.

When you sell your house to us you eliminate the hassles, uncertainties, and costs of selling with a real estate agent. The majority of the selling process happens online, so we can maintain the social distancing required these days. We buy houses in Seattle in any condition. We’ll make you a fair offer and will be honest and transparent throughout the entire process.

CONTACT US

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