Are you looking to sell your Wisconsin real estate properties to cash buyers? Would you prefer to sell your house in its as-is condition and sell the place as quickly as possible? A cash sale can make that happen. For instance, cash buyers don’t need a mortgage pre-approval and can directly buy the property within a few weeks.
However, you will first need to learn about the cash offer on house process. Generally, you can benefit from lower closing costs and avoid a real estate agent commission fee through a cash sale. Many home cash buyers don’t require a home inspection, but some do. Nonetheless, there are specific steps you’ll need to follow before gaining these advantages.
Below, we detail the house-selling process through a cash deal. Ready to learn more? Let’s get started!
The Process of Selling a House for Cash
When you’re selling your home through a cash purchase, you will have to follow eight specific steps. The eight steps for selling a house for cash include:
- Figuring out the home value of your property
- Finding a cash buyer or iBuyer with enough cash
- Obtain proof of funds and assess bids from cash purchase buyers
- Compare the cash offers to the home appraisal value
- Sign the home sale contract
- Complete a home inspection
- Ensure a clear escrow and title to the house
- Review and sign paperwork on closing day
Realtors can help you determine the home value of your property by performing a comparative market analysis. That analysis will provide you with information about how much similar residences are listed and sold for.
After putting a property on the housing market, home sellers will also need to look for cash buyers, such as iBuyers or “We Buy Houses” companies. iBuyers are online businesses that purchase homes using algorithms and programs to determine the value of a property before making an offer.
You can also find advertisements for cash-buying companies that “buy ugly houses.” Lastly, you can contact a real estate agent to see if they know any buyers who can pay cash for a house.
You will need to evaluate each offer from first-time home buyers and cash buyers. Determine proof of funds and liquidity from each potential buyer. You may want to check the credit score of any new home buyer.
The offers you receive from cash buyers are often a lower price than your home’s fair market value. Often, you end up giving a discount due to the cash offer and the quick sale. However, if you’re in the midst of a strong seller’s market, you should likely receive multiple bids in a bidding war. That way, you can compare the offers to your home’s value and pick the best offer.
Work with a real estate attorney and a realtor to develop the terms of the sale, like the timeline of the closing and sale price. Now, you will need to sign the contract. You should also budget for closing costs like property taxes, HOA fees, and the rest of your mortgage payment. You will need to pay off your mortgage loan on closing day.
Even if several cash buyers don’t require a home inspection, you may still end up with a home buyer who wants the place inspected. Essentially, buyers do not want a property with major problems to repair. The inspector looks at the home’s foundation, plumbing, electricity, and other potential issues.
While some cash buyers include an inspection contingency in the contract, many do buy a place in its as-is condition and waive the home inspection. That way, you won’t need to make any repairs and even avoid the hassle of staging the home.
Before closing day, make sure you have a clear title to the house and clear escrow. That way, you can legally transfer the property to the cash buyer. The last step includes reviewing paperwork at closing and finalizing the home sale documents. Once you’ve signed all the paperwork at the end of the closing process, you will receive your payment for the sale.
Research Cash Home Buyers
It’s essential to do your research on the best cash home buyers in the business, including iBuyers, We Buy Houses companies, and other cash home-buying companies. Conduct a valuation on your house to make sure the cash buyer is making a fair offer on your property. You can do so by getting an appraisal and a home inspection completed.
A few of the best We Buy Houses companies include:
- We Buy Ugly Houses
- HomeVestors
- We Buy Houses
- Marketpro Homebuyers
- I Buy Houses
- Sundae Real Estate
Along with those six businesses, the best iBuyers to consider for your real estate transaction include:
- Offerpad
- Opendoor
- RedfinNow
- Knock
- Orchard
- Flyhomes
Agree on House Viewing
You will need to agree on a specific date for the cash buyer to complete the house viewing. First, you will have to contact the cash home buyer and set up an appointment. The home cash buyer will then visit your house and view the property. Often, the cash buyer will make an offer during that first visit when viewing the house.
That’s a much faster process to a cash offer than if you were selling to a standard family working with a mortgage lender. The national average in 2018 for a home that remained on the market was 68 days. With a cash buyer, however, you can complete the sale in only two weeks.
List Any Repairs/Maintenance Needed
Before you put your house on the market, check with a real estate agent on what needs fixing or renovations in your home. You may want to conduct a home inspection before you list your home on the real estate market. That way, you will know what type of repairs to complete.
The most common fixes that a house needs are plumbing issues, dated electrical problems, a leaky roof, and heating, air conditioning, or ventilation issues. You may also need to fix your house’s foundation flaws and address any missing safety features.
List these necessary repairs as part of your house preparation before selling checklist. Start looking for a contractor. Hire the right handyman and provide them with your list of repairs.
Make Cosmetic House Repairs if Necessary
Have a handyman fix any problems like roof problems, electrical or plumbing issues, and heating/AC flaws. Furthermore, you may want to renovate a few key rooms in the house. The kitchen is usually the heart of the home. Families enjoy cooking and eating their meals in the kitchen.
As such, you should seriously consider modernizing the kitchen. You may need to replace aging kitchen countertops, refinish hardwood floors, and buy new kitchen appliances.
You will also need to remodel the bathroom if it looks dated. Make sure to replace chipped tiles in the shower or tub. Deep clean the bathroom to remove mildew and replace the caulk. Fix plumbing issues like clogged drains, leaky faucets, and running toilets.
The average cost of a home remodeling project is usually at least $4,580. You will also need to renew your home’s exterior, such as painting over the peeled paint or fixing the leaky roof. You should also conduct landscaping work in the front yard to improve the curb appeal of the house.
Agree On a Price You’re Comfortable With
To get a good offer on your home, you will need to price your property at the right value. A fair cash offer only happens if you focus on your home’s fair market value when listing it on the real estate market.
You will need to meet with a real estate advisor who can help you price your home based on the value of properties in your neighborhood, the buyer demand in the real estate market, and the condition of your residence.
Once you’ve settled on a cash buyer, you should agree to a home sale price that you’re comfortable with. Make sure the sale price is fair and relatively profitable.
Agree On a Date You’re Happy To Sell
Once the cash buyer visits your property, he or she is likely to make an offer on the house immediately. If you accept the offer, you will need to sign a purchase and sales agreement. Work with a real estate attorney to ensure your purchase and sale contract aligns with your requests and meets the necessary legalities.
The next step is to agree on the date that you can sell your property. That date is known as the closing date. You’ll find that closing can happen in as little as 14 days.
Conclusion
Our guide on a cash offer on house process should have provided you with all the steps necessary to complete your real estate transaction. First, you will need to research cash buyers, agree to a house viewing, and complete necessary house repairs and renovations. Then, accept a cash offer that you’re happy with and complete the home sale on the closing date.
However, the cheapest ways to sell a house include selling your place to a cash buyer in its as-is condition. If you’re looking to sell a house fast in Fox Point, seek cash home buyers in Wisconsin. You should know we buy houses Milwaukee residents love, so call us today.
