When you have an emergency and substantial need for cash, you may think of selling your house as your only option. Maybe you bought a house as an investment, but things didn’t go as planned. Or you may have recently inherited a home that you have no plans of keeping. Regardless of what drives you to sell your property for cash, there are important matters you have to know or be ready for.
Types of Deeds
In all real types of real estate purchases or sales, the deed is the most important document. This specifies who will own the property once the transaction has been concluded. The two most common types of deeds are the warranty deed and the quitclaim deed. A warranty deed guarantees that a house is free of any liens or encumbrances. A quitclaim deed, on the other hand, doesn’t make any such assurances.
With details of your property all prepared, you will be able to sell your home even faster. As expected, any buyer will want to know more about the property they’re interested in. Make sure information is on hand anytime.
Reputation of Buyer
Scammers are everywhere, such as in the real estate industry. In other words, research your would-be buyer’s reputation.
You should also be vigilant and watch for the signs of a scam. For instance, if somebody is keen buying your property without inspecting it first, that’s one red flag. Also steer clear of those who communicate purely with emails, or those who won’t even try to negotiate the 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.
A cash house sale is reasonably for a lower price than the property’s traditional market value. And that is completely understandable, considering the buyer will take your house, regardless of the 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. Therefore, everything evens out in the end, so you will still get a fairly good deal.
Once the deal is done, you’d like to make sure that all copies of the paperwork are available, neatly filed, and stored in a safe place. This is extremely important, especially in terms of dealing with the tax consequences of the transaction. As expected, the IRS will not want you to keep your profits a secret.