How Long Does a Cash Home Sale Take?
It’s no secret that the average home sale can take 3-6 months. In a seller’s market like we’ve had in recent years, that average may be a little quicker. It depends on the neighborhood, price point, house condition and a number of other factors. Even the quickest open market sales will take a couple months to complete because of the lengthy escrow process and buyer financing.
But what about a cash home sale? How long will those take?
It may depend on a variety of factors, but in general a cash home sale will be a much, much quicker and simpler process. Because the buyer is paying with cash instead of a mortgage loan that needs to be underwritten and approved, the process is much less complicated and there is no need for an extended 30-, 45- or 60-day escrow. The cash just needs to be transferred to the seller and the deed goes to the buyer. It’s as simple as that in many cases.
Who is the Buyer?
Who the buyer is may impact how long a cash home sale takes. A regular home buyer paying cash will still usually have some contingencies. They may require certain repairs to be made. There may be an appraisal and home inspections that need to be completed before the sale can be finalized. There may be other demands, requests or contingencies that need to be considered—all of which can tack some time onto the closing process. Every cash deal may be a little different. At the same time, it is still usually much quicker than a traditional home sale that requires home preparation, marketing, offer reviews/negotiations, financing and a full escrow period.
Cash Sale to Real Estate Investor
Then, there is the other kind of cash deal where you sell your house to a real estate investor. Good investors are backed by cash or other solid financing that allows them to buy properties with little-to-no complications. And, in most cases, cash buyers are purchasing houses in as-is condition. They intend to turn the property for profit, whether they are rehabbing it and renting it out or completely renovating it to resell on the open market (i.e., “house flipping”). Either way, they are buying with cash and willing to take risks on houses that need some work.
A cash deal (or other seller financing plan) with a real estate investor will typically be a very fast process. Sellers can get out of their houses as quickly as they want and the buyer can take over to start their renovation as soon as possible. At PropertyLark, we’ve been known to close cash deals on properties in as few as seven (7) working days. This includes everything from the initial cash offer to final closing and any money that is owed to you being wired to your account. Not all transactions go this quickly, but in general we are talking about weeks (rather than months) to complete the sale of your home.
What if I Need More Time?
What if you don’t want to move that quickly, though? Not all investors will offer you this much flexibility, but PropertyLark allows you to set your own closing date. As long as it’s a reasonable time period, you just let us know when you would like to move out and we’ll arrange the contract to close on that desired date. Whether you want to get out as soon as possible or you need a couple weeks/months before you are ready to vacate the property, we will with you to set a closing date and then make sure the deal is done within that time period.
A cash home sale makes sense for many homeowners who may be in a financial distress situation or in another common scenario that requires a quick move and less-complex financial transaction. Examples might be a job relocation, unwanted inherited property or a divorce where the proceeds from the sale are to be split between the two parties. These are all situations we see a lot at PropertyLark. Some sellers just don’t want to deal with the hassles of a traditional real estate sale. They don’t want to work with a Realtor® and they don’t want a bunch of strangers parading through their house. They just want a clean and simple deal with as few complications as possible.
Make the Right Home Selling Decision
It’s also worthwhile to run the numbers. You can get a free, no-obligation fair cash offer on your house from PropertyLark. You’ll know exactly what we are offering to pay. Then, you can compare that with what you think you might be able to get on the open market. Be sure to factor in the other costs you would need to pay for a traditional sale, such as repairs, real estate agent/brokerage fees and closing costs). You also have to consider ongoing homeownership expenses for the months you will still own the property, including taxes, mortgage payments, utilities, insurance, HOA dues, etc.
Ultimately, it’s up to you what you want to do. It’s a good idea to explore your options and make a smart home selling decision. Cash sales make a lot of sense for some homeowners, but not all.
If you would like to get a fair cash offer from PropertyLark or explore other home selling and financing options, fill out the contact form to the right or on any page of our website. Let us show you how a cash deal may be your best solution.