A Must Read Before You Sell Your Florida House For Cash!
Fast cash home buyers companies in the real estate market have the most untarnished reputation, but of course you are not that crazy to consider selling your house for cash. The number of companies that provide quick cash offers for houses is rising and improves the experience of the sellers with advanced technology, also the idea that you don’t have to wait anymore for months in order to list and close on your house deals. There are circumstances that will motivate you in selling your house such as a low bank account, divorce and job move.
“You just need to contact or reach out to them, agree to the offer and then you will not have to worry anymore” says Doug Van Soest, an owner of a house flipping company. He also describes it as the typical way things go, he also said that “Another thing, you will save more money because you will not have to worry about the repairs, commissions and closing costs anymore.”
If it’s not clear to you and you think it’s just too good to be true about what selling a house for cash is really like, we’re gonna help you understand some most common points and questions with regards to selling. Some of the questions are:
- Selling your house for cash, what does it really mean?
- Are Florida cash home buyer companies legit?
- Cash for your house? Who will purchase it?
- Why do they sell their home for cash?
Selling your house for cash, what does it really mean?
Trading your old vehicle to the dealership and selling your house for cash has similar benefits. If you sell it on your own you might gain a little more money out of it, but it will likely take longer than you think and it will require extra work on your end. You need to handle all the paperwork, you need to organize potential house buyers, you need to fix minor repairs and you need to advertise it on Craigslists and other selling platforms.
When you sell your house for cash the translation for it in real estate terms goes like this:
You will request an offer. You will skip all of the hassle such as staging and showing process and go straight in requesting a cash offer. At this very point you will sell the Florida house “as-is”, it means that you don’t have plans in making repairs or changing anything with regards to the house or maybe if you are open to some repairs.
House will be evaluated. The buyers will gather some details about the house, possibly will send a representative or inspector that will do the on-site visit to the property and will evaluate what the buyer is willing to pay for the house.
Review of the contract. Well, you as the seller and the homeowner will review the offer which includes the terms and price of the house. Then you will decide whether to accept or not.
Always ask for proof of funds. You should always have the documentation that a company or a person who they say they are and has the funds and is able to complete this kind of transaction.
Completing the inspection. If the deal will proceed, the buyer may still do some steps like additional inspections and appraisal. It will all depend on who you work with and how they operate. Even though you are selling the house as-is, an inspection will still be required.
Fast Closing. Without any involvement of a lender, there will be no loan processing period or lender-ordered appraisal. The average closing as of June 2021 where the buyer used the mortgage took 51 days, based on the report from Ice Mortgage Technologies.
Cleared Title. The buyer will need to require a title search in order to make sure that the property is clear and free of any claims or any judgements against the property such as boundary encroachments, unpaid taxes or mechanic’s liens.
You will get paid. The buyer will probably wire the fund to your selected bank account, this process will likely take a matter of weeks or even just a day.
In reality, selling a house for cash in Florida doesn’t mean that a person will show up in front of your doorstep and bring a briefcase full of cash. You will still have to go through the official steps in order to complete the sale and hiccups like a title defect can still arise. But if the buyer doesn’t want to wait for the lender to underwrite or process their loan, you can still coordinate for a much faster sale.
Are cash home buyer companies legit?
In other words, of course the answer is yes! There are many companies that are legitimate out there and buy houses for cash. They are good on their word and will provide you with a great experience in selling your house. Nevertheless, we are always recommending that you do your due diligence on any buyer before you provide any sensitive details, signing a contract or sending any amount of money.
Check their rating on BBB
If you decide on what type of cash home buyer in Florida you want to work with, you need to make sure that it’s accredited by Better Business Bureau (BBB). Check their reviews and also check their response to some complainants.
Ask for the EMD and proof of funds
Shaun Simpson, a leading real estate agent who helped many clients handle cash sales, advises for official proof of funds from the buyer’s bank and confirming that they are able to provide adequate earnest money, the deposit that represents a buyer’s commitment to a sale. “If you’re buying a $500,000 house that’s supposed to close in a week, you should have no problem putting a 2-3% deposit into earnest money,” he says.
If needed, consult to an agent
A reputable real estate agent will most probably have an inside track on who is the local cash buyer on the market and can also help you avoid getting lowballed.
“There are a lot of investors that are reaching out directly to homeowners to try and buy their Florida property with cash,” notes Brian Breeckner, a top-selling real estate agent who, like Simpson. “To make sure a buyer is legitimate, or that they’re making a good offer based on the value of your home, you can always speak to an experienced local real estate agent and get their opinion.”
What about “We Buy Houses” companies?
Of course you’ve already seen ads from “We buy any house for cash” companies, so are they really legit? If you connect with any one of the company’s bonafide 1,150 franchises in 47 states and 170 markets across the country, the answer is yes. This type of company specializes in flipping shabby houses and has bought more than 100,000 houses. They are established in this kind of scenario, in cash buying.
Nevertheless, do some research first before working with any investors operating under this brand for their yellow billboards and shaggy-haired caveman style. For more details on a particular company, you should ask for help maybe from their past clients or referral from local people.
Cash for your house? Who will purchase it?
Home buying companies or cash home buyers in Florida are entities or individuals that can buy your house right away, without the need for lender financing. In general speaking, selling your house to a cash home buyer will basically allow you to skip home preparation, showing and staging of the house. They can arrange a flexible closing date and coordinate with the purchase of your next house. But of course not all cash home buyers have the same exact business model. To keep it very simple, we’ve grouped these buyers into a few broader categories you’re likely to encounter today.
“An iBuyer is a company that works directly with consumers providing an instant cash offer to purchase the home outright. iBuyers — Opendoor Technologies, for instance — purchase the home as-is without requesting any repairs, upgrades, warranties, closing costs or concessions, or real estate agent commissions. iBuying allows homeowners to sell their home without a broker or real estate agent, saving them money and time while avoiding the challenges and costs that can be incurred with the traditional real estate transactions.” (Source: millionacres.com/real-estate-market/real-estate-innovation/what-ibuyer-ibuying-explained/)
Buy and hold investors
They are the one who purchase houses and convert them into rental houses or properties. Occasionally, these buyers sell houses once the value is enough and sometimes they hold on to it until they get the right timing.
Possibly, media personalities like Joanna and Chip Gaines or your remodeling inspiration comes to your mind when you see the word “house flippers”. Regardless if it’s a large operation or small business, house flippers buy houses. Sometimes they buy houses that have a very poor condition at a lower price, with the intention to renovate them and resell them for more money.
Why do they sell their Florida home for cash?
It’s because of the peace of mind, convenience, speed and financial motivation. The said things are the very reason why the sellers are growing in numbers and reaching out to cash buyers.
If you really want peace of mind and your top priority is to end your frustrations then selling your house for cash in Florida can be the best choice for you.
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