If you are looking to buy a house you may be financing the purchase in several ways. A mortgage is common especially for first time buyers. However, if you have already been a homeowner, you may be a cash buyer for your new property. This is becoming more common an experience as empty nesters and boomers are retiring and downsizing. Sometimes if you are moving for work there is provision to buy a new home. Or you may have inherited some money which makes this cash purchase possible. Here are some top tips for how to go about buying a house with cash.
What is the process for buying a house with cash?
You have just been told that you have to relocate for your job and you need a place to live. One option is to rent an apartment. However, if you have a big family and you don’t want to get tied into a lease in a small place then think again. Should you need to sell your house in a hurry that could also create a problem.
You may think that it will take months to buy a house and sell your old one. You may want to consider buying a house for cash and selling your old house for cash as well. you should begin the process by learning a bit about the advantages and disadvantages of cash sales.
The Advantages of Cash Sales
When you buy a house for cash, you will not have to worry about dealing with real estate agents and you will never have to worry about paying interest on a loan or having a bank foreclosing on your property. The home will be yours outright.
In addition to being much faster, buying a house for cash does not entail as many closing costs as buying a house in the traditional manner and you can save a significant amount of money.
The Disadvantages of Buying a House for Cash
Some people take out a mortgage on their home for tax reasons. Real-estate is a high-ticket item no matter how humble the abode. If you spend every cent you have on your house, you might end up having to take a loan anyway for emergency eventualities. And if you sell your house for cash, you will not get as much money for it as if you put it on the market the traditional way.
However, if you decide do you want to sell or buy a home for cash, there are a few simple steps of which you should be aware.
if a seller Googles, “we buy houses in Fort Lauderdale,” several websites will come up. These are companies that are devoted to buying homes for cash and flipping them for use as rental properties. If a person is selling a home, they should get estimates from a few of these companies before deciding which company they will sell the home to.
Most of these home buying companies have a simple form asking for the name, address, and phone number of the seller. The buying company then calls the seller with an offer. Such a company may also be able to help you purchase a house for cash.
If the seller decides to take the offer, the cash purchasing company will meet with the seller at their home for verification purposes. In some cases, they may also accept photographs of the home as verification. A person who is buying a house for cash will always want to go to the home first. This will help them to make sure that the people who listed it actually own the property.
This is the stage where both buyer and seller will make sure the transaction can take place. The seller will confirm with the bank that the buyer has the money. If the buyer has the money it will then be placed into an escrow account for a few days. The money stays there until the actual sale is final.
A title search must be performed at this point. The title search will reveal if there are any discrepancies over who owns the property. It will also reveal if there are any liens on it. If there are no liens or discrepancies, the buyer can give the seller of a cashier’s check or make an electronic transfer into their account and the deed will be handed over to the buyer.
Cash sales are great options for people who want to get things done quickly. Whether you are relocating or fancy a new neighborhood, you can avoid the hassle of dealing with realtors and closing costs. Skip right to enjoying life in your new home with a fast cash purchase.