You may find yourself with a big and immediate need for cash, and the only way to meet it is to sell your home. Maybe you bought a house as an investment, but things didn’t go as planned. Or you may have inherited a home you don’t really want and you want to dispose of it quickly. No matter why you have decided to sell your property for cash, you need know a few crucial things and make some minor preparations.
Types of Deeds
In all real types of real estate purchases or sales, the deed is the most important document. This is where it will be indicated who is the new owner of the property after the sale. Two of the most widely used types of deeds are known as warranty and quitclaim. A warranty deed guarantees that a house is free of any liens or encumbrances. A quitclaim deed is the opposite – it doesn’t make any guarantees.
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. Hence, you should always be ready with information.
Scammers are everywhere, such as in the real estate industry. In short, know the background of your potential buyer.
You should also be vigilant and watch for the signs of a scam. For example, if someone wants to purchase your property without having seen it personally that’s fishy. 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. Usually, you can choose between established and reputable investors, and individual buyers.
When selling a house for cash, it’s reasonable to expect the offer to be lower than the property’s mainstream value. This is totally understandable however, considering that the investor will buy your home in the exact 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 is very important, especially when handling tax consequences of the sale. As expected, the IRS will not want you to keep your profits a secret.