What does it mean to sell house for cash? What do these bandit signs that say “cash for house” mean? Is it legal? How is it different from selling through a realtor? Why not just sell through a relator, why sell a house for cash to somebody?
This article will answer every signel one of these questions.
So, what does it mean to sell house for cash?
Kind of exactly what it says – seller gets paid in cash. Well, it doesn’t mean a big bag of money full of cash. Seller can chose how they want to get the money – wire transfer cash or else. But what usually mean by “cash” is that the deal has NO contingency on the bank/loan approval.
What is the catch?
The catch is that 99% of the time you will get lower value for your house. Why? Because most of the time, people who would want to sell house for cash, want to sell house quickly. There are plenty of reasons why one would want to make a quick sale. Let’s consider a few scenarios. For example – divorce, one party wants to get rid of the house quickly without doing any repairs, or going through staging process and waiting and they just want out NOW. Another case, somebody inherited the house and they just don’t want to deal with reiars needed for sale, and would rather make a quick sale and get the money.
From the buyer perspective, why would buyer offer lower than market price? Because intention with these “house for cash” sales is that it’s a quick sale, that closes quickly, so buyer not always able to do full inspection and might expect expensive repairs such as HVAC or water heater, or roof repairs that might not be disclosed by the buyer.
Buyers are usually real estate investors who would repair the house for resale or keep it and rent it out.
Sell house with real estate agent VS house for cash
This is a matter of conviniece. If you have time and money to get the house ready for sale with real estate agent, then that’s the most popular route to go. However, if you are on once of those tricky situations where you need to get rid of the house quickly, then “house for cash” could be a way to go.
Is “house for cash” legal and safe way to sell the house?
Legal – yes. Just like any real estate transaction it will go through a real estate attorney and be recorded with a county. As a seller, you can always use your own(or find one that you trust) attorney that you will use in the transaction. You might also have a preference in which title company to use, and again, have every right to do so. Always exercise caution and common sense. You can try googling the person you are talking to about the sale and read reviews.
To sum it up, if there are no red flags, selling house for cash is legal way to sell a house, even though it’s a “traditional” approach as, for example, going through a real estate agent and then finding a buyer who applies for mortgage and then your sale depends on seller’s mortgage approval. Selling house for cash, skips all these steps, making a quick sale.
Can I sell a house in dilapidated condition for cash?
The short answer – YES.
The long answer is that condition of the house will influence the offer you will get from a buyer.
Can I sell a house for cash with a lien on it?
Yes, but expect the price the buyer will give you to reflect that lien.