If you choose to sell your house directly to a cash buyer, use the following process to ensure you protect your interests.
Research websites, the Better Business Bureau®, and Google reviews to find a local reputable cash buyer who can buy your house fast as is. Make sure they aren’t a wholesaler or national lead generator who will act as a middleman with no intention of adding value to the property. Sell your house directly to a local investor who can give you the best price.
Have a conversation with the person and company about their plans for the house.
Have the seller come and evaluate the property to make an offer. Don’t be afraid to talk to them about their intentions and recent projects they’re working on or completed. This will help you determine if they are a legitimate cash buyer.
Ask the buyer about their numbers, including the construction budget and their projected sales price. Then apply those numbers to the generic formula: Sales Price x 70% – Construction Budget = Max Offer to see if it’s a fair offer.
The cash buyer should present a contract offer. Make sure it doesn’t require a long inspection period. It should be a cash offer with no financing contingency. The buyer should pay your closing costs. And, lastly, if they’ve presented themselves as the end buyer, ask them to write in a phrase stating, “Assignment of the contract is not permitted.” This will force them to disclose any intentions of wholesaling the contract to an end buyer. Be sure you are clear regarding any responsibilities you have to clean up the property in any way and if the contract includes any personal property at the house.
Insist on using an actual real estate attorney to close the transaction, as opposed to a less expensive title company. If any probate or deed issues arise during the title search, an attorney can usually solve those problems for you. If you don’t use an attorney to close, you may have to hire an attorney to work through any probate or deed issues on your behalf in order to sell the property.
Schedule the closing at your convenience. You do not need to bring the original deed or any paperwork. Make sure the settlement statement is correct. If you’ve acquired the property through probate or inheritance, be sure and contact the closing attorney as early in the process as possible. Oftentimes, probate attorneys neglect to file certain paperwork which causes delays in selling an inherited property.
Consult a CPA for advice on minimizing your tax liability on the sale. A good CPA might be able to find ways to save you quite a bit of tax savings.
Choosing to sell your house fast to a cash buyer in as is condition has benefits and disadvantages. You will likely give up some equity in return for speed, simplicity, and minimal contingencies. It’s not always the best option, but it is the best option for many sellers. Use the information above to make the best decision for your particular situation. If you do decide to sell your house fast for cash, invest some time in finding a credible buyer.
Looking for a credible home cash buyer? Get in touch with our team at St. Louis Realty Advisors. We buy houses in any condition and are ready to extend a fair cash offer to purchase your property. To get started give us a call at 314-270-1601.