The conventional real estate closing process is complex and time-consuming. It is not a matter of the seller handing the house over to the buyer in exchange for cash. As well as these two parties, there is the seller and buyer’s real estate agent, a bank or other lender, an escrow company, a title company, and attorneys. If you want to sell your house fast, there is a better way.
There are investors who advertise, “We buy houses in Sacramento.” When you accept their cash offer, there are far fewer parties involved. Also, there is less paperwork, it takes far less time to close, and the risk of the sale falling through at the last minute is far less.
What Is an “All Cash” Offer?
Although “all cash” is the term most often used, it is a misnomer. It is against the law to close a real estate transaction in the US using actual cash. When a party, an individual or investment group, buys a house outright, without the involvement of a financial intermediate, the funds are transferred electronically or by check.
Real Estate Closing Timelines
The average time for a financed house purchase to close is four weeks. The closing time for an all-cash purchase is far shorter, as little as 7 to 10 days is standard. Once again, because there are fewer parties involved, it is little more than insurance and the clearing of any outstanding liens and miscellaneous paperwork.
Selling a House for Cash
The process of selling a house for cash is very straightforward. Once you and the buyer have agreed on a selling price, the first step is to complete and sign a simple “purchase and sale” agreement that specifies the price and closing date. At this stage, the seller’s involvement is more or less over. The buyer assumes all costs and fees. This fact alone saves the seller considerable money as he or she is freed from paying realtor commissions and closing costs.
