The Cash Home-Buying Process

Selling your home to a cash buyer will eliminate a lot of the paperwork and legal requirements that you would endure with a sale that is financed. If you are motivated to sell your home quickly, learn how working with a cash buyer can be beneficial to you.

An Appraisal

A buyer who seeks financing through a lender will need to obtain an appraisal. A mortgage company requires an appraisal at the onset of the home-buying process. An appraisal determines the true value of a residence and the land it is situated on. If the value of the property differs from the asking price for the home, the listing agent may advise the seller to lower the price that they are asking for the property.

An appraisal isn't necessary when a cash purchase is being sought. However, a cash home buyer has the right to seek an appraisal. A real estate agent who works on behalf of a cash buyer will set up an appointment for an appraisal. They will complete all of the paperwork associated with the valuation of the property.

The Preapproval

A home buyer who applies for a mortgage may initially be preapproved for the amount of financing that they are seeking. The preapproval amount could change for a variety of reasons. If an applicant's financial situation worsens, for instance, the amount of money that the applicant is eligible for could be reduced.

A modification in the amount that a mortgage applicant is eligible for could slow down the home-buying process or halt it altogether. A cash purchase does not require any type of financing. There is no lengthy paperwork that needs to be filled out. 

Financial Proof And The Offer

Cash buyers should be equipped to show financial proof during the home-buying process. A cash buyer may leave their money in a bank account until they have made a deal with a seller. They may seek a financial statement from their banking institution. The financial statement is a legal document that will outline how much cash is at a buyer's disposal. During a meeting with a seller, a cash buyer may provide the seller with the financial statement.

A cash buyer may make an offer on a listed property. The offer may be less than what a seller is asking. Even though the offer may be reduced, a seller may decide that it is in their best interest to sell their home to the cash buyer. This is due to the potential to sell the property quickly.

Contact a local cash home buyer to learn more.