The real estate closing process is always tricky, whether you're a first-time seller or have done it a million times. The buyer, the buyer's real estate agent, lenders, escrow firm, a title company, and occasionally a real estate attorney are all engaged.
Fortunately, accepting a cash offer simplifies the selling process because fewer parties are involved, there is less paperwork, the schedule can be accelerated, and the chance of the deal falling through is minimized.
What does it mean to sell your house for cash?
The phrase "sell your house for cash" indicates that the buyer will pay cash for the property instead of taking out a loan. Accepting a cash offer streamlines the process of selling your home. It is not required to go through arduous financial procedures. This is often designated for properties that need repairs. Sellers who are behind on their mortgage payments or have other financial issues are also eligible.
What do I need to prepare to sell my house for cash?
So you've decided to sell your house. Congrats! Gather these documents before advertising your home to maximize profits and avoid agony throughout the selling process.
Original Sales Contract
At one point in time, you bought the house that you’re now selling! And there should be a record of it. You do not, however, require this paperwork to sell your home. It's a good idea to have it on hand regardless because many purchasers will ask to view it.
Mortgage statement (pay-off amount)
If you're planning to sell your house before paying off your current mortgage, call your lender or servicer and ask for a statement detailing your payback amount. The payback amount is the entire amount you'll have to pay to meet the conditions of your mortgage loan, including any interest due until the day you ultimately want to pay it off.
Receipts for capital improvements
If you keep track of the changes you made throughout your ownership of the house, figuring in capital improvements will be much easier come tax time, so keep those receipts. Remember that capital improvements do not include any items that are required for the maintenance and repair of your house — only those that have added to or improved the value of your property.
Mandatory disclosures
Every state in the United States has disclosure laws that govern the process of informing potential purchasers about known faults with a home for sale. You'll need to write a disclosure form if you sell a home. Though the laws in each state vary, they all follow a similar pattern. If a seller or seller's agent is aware of a condition in a home that may jeopardize the health or safety of a resident, they must inform the buyer. Some states demand more paperwork than others, so check your state's requirements.
Personal identification information
You'll need a driver's license or state-issued identification card with a photo of yourself to establish your identity. You may also require a piece of official mail addressed to you. A power bill or a bank statement can be used. Some states may have different regulations, so regardless of where you finalize your property sale, be prepared to identify yourself.
Final purchase and sale agreement: The final purchase and sale agreement is a complete document that includes the amount of earnest money, the sale price, the closing terms, contained disclosures, tax information, and more. A real estate deal will fail if the final buy and sell agreement conditions are not agreed upon by all parties involved.
HUD-1 settlement statement
The HUD-1 is a complete accounting of all money involved in the transaction, as federal law requires. It covers everything you've bargained for: the sales price, payback amounts, prorated tax and utility bills, and more.
How to avoid all the paperwork?
Even when dealing in cash, a pile of paperwork is almost inevitable at closing. But imagine not having to go through paying agent fees, arrange showings, worry about repairs, inspections, or staging a home for sale. Ash Creek Properties offers you precisely that, a hassle-less option with an all-cash offer for your home, as-is. Close and move out on the date of your choosing. Contact us today!