When you find a buyer for your house, the most typical way he or she would pay for it is through a mortgage loan. While this is the most common way homes are sold, there are also times when people have enough cash to use to pay for an entire purchase. If you are selling your house and find a cash buyer, here are three differences you should know about.
The Requirements
The first difference with these two types of sales is the requirements with each. When a person pays for a house through a loan, this person has a lender that is dictating what needs to be done for the closing to take place. The lender will require an appraisal for the house, for example, and this is designed to protect the lender. The lender will base the loan amount on the appraisal. Lenders also require a lot of other things, including title work, inspections, and surveys, in most cases.
When a person is paying cash for the house, this person has no one handing out a list of requirements that must be met. Therefore, this person could choose to go through all the requirements a lender might have, or the person might decide to skip all of them.
The Speed in Closing
Because there are no requirements for the person who is paying cash, a deal like this will go through a lot faster. When a person gets a loan, it often takes at least one month to close on a house from the time the seller accepts the offer. With a cash buyer, there is a good chance you could end up closing within one week. If you like this idea but feel like that would not give you enough time to get packed and moved, you could always ask the buyer if you could pay to stay there for another week or two.
The Price
Additionally, there is usually a difference when it comes to the price a home will sell at with a cash buyer versus a person using a loan. When you sell with cash, you might sell for a price that is lower than you would if the person had a mortgage. There are several reasons for this, but one of the reasons is due to not needing any inspections or anything like that.
If you are interested in selling your house for cash with either method, talk to a real estate agent to learn more about selling your home.
Share16 November 2018
After I decided to buy a new home, I realized that I probably needed to prioritize the things on my wish list. Since I am not wealthy, I realized that I probably couldn't get everything that I wanted out of a single home--at least, not this time around. Fortunately, I worked with an incredible real estate agent who helped me to figure out which type of property would pay off in the end. Finding a home took a lot of time, but I am really pleased that I found the right one. This blog is all about learning to prioritize your home hunting wish list so that you can have the home and financial situation of your dreams.
