When you have an emergency and substantial need for cash, you may think of selling your house as your only option. Maybe you took a chance on a house as an investment, but it didn’t turn out to be such a good idea. Or you may have inherited a home you don’t really want and you want to dispose of it quickly. No matter why you have decided to sell your property for cash, you need know a few crucial things and make some minor preparations.
Types of Deeds
In all real types of real estate purchases or sales, the deed is the most important document. This specifies who will own the property once the transaction has been concluded. Warranty and quitclaim are the two most common types of deeds. A warranty deed is executed to assure the buyer that a house is free of any liens or encumbrances. On the other hand, a quitclaim deed makes no such guarantees.
Details On Hand
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 it a point to have information ready anytime.
Reputation of Buyer
Scammers are everywhere, such as in the real estate industry. In short, research the background of your prospective buyer.
Also be sensitive to the indicators of a scam. For example, if someone sounds eager to buy the property without seeing it first, that’s suspicious. Also be careful of those who only communicate through email, or those who don’t negotiate the asking price. 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. You will probably have a choice between individual buyers and reputable real estate investors.
A cash house sale is reasonably for a lower price than the property’s traditional market value. Which is, of course, absolutely understandable, since the buyer will have your house in its exact current condition. 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.). Thus, with everything evening out, you can still end up with a profitable deal.
As soon as the deal is done, you have to ensure that you have copies of all the relevant paperwork, organized neatly and stored in a safe spot. This is extremely important, especially in terms of dealing with the tax consequences of the transaction. As you probably know, the IRS will want to be in the loop regarding any profit you made with the sale.