You may find yourself in a scenario where you need to sell your home because of an urgent and substantial need for cash. Maybe you purchased your house as an investment, but everything turned out far from your expectations. Or you may have inherited a home you don’t really want and you want to dispose of it quickly. Whatever is your motivation behind selling your property for cash, there are important matters you should know or be prepared for.
Types of Deeds
In any real estate transaction, the deed is the central document. This states the name of new property owner after the sale is concluded. The two most common types of deeds are the warranty deed and the quitclaim deed. A warranty deed is executed to assure the buyer that a house is free of any liens or encumbrances. A quitclaim deed is the opposite – it doesn’t make any guarantees.
Details On Hand
When your property details are already prepared early on, the selling process will even be much faster. As you would expect, a buyer will always want to know some basic details regarding the property they’re eyeing. Make it a point to have information ready anytime.
Reputation of Buyer
Scammers are everywhere, such as in the real estate industry. In other words, research your would-be buyer’s reputation.
You should also be quick to recognize the signs of a scam. For example, if someone sounds eager to buy the property without seeing it first, that’s suspicious. Also be careful of those who only communicate through email, or those who don’t negotiate the asking price. Don’t worry, there are more legit house-for-cash buyers than not, and as long as you do your homework, you’ll be safe. You can likely choose between established real estate investors and individual buyers.
When you sell your home for cash, you should expect a lower offer compared to the property’s mainstream price. And that is completely understandable, considering the buyer will take your house, regardless of the condition it’s in. That means you don’t have to spend for repairs or renovation, and even the costs of the transaction, such as inspection, appraisal, closing, etc. are usually shouldered by the investor. Thus, with everything evening out, you can still end up with a profitable deal.
As soon as the deal is done, you have to ensure that you have copies of all the relevant paperwork, organized neatly and stored in a safe spot. This can be crucial, especially when you have to deal with taxation issues arising from the transaction. As you probably know, the IRS will want to be in the loop regarding any profit you made with the sale.