How long does a house sale take with a cash buyer?
The other day, while sitting in a restaurant, the waiter took my order and was about to leave. Before he got too far away, I asked, “how long do you think it will take?” I was in a small hurry trying to make it to my next appointment. This experience got me thinking about the number one question I get asked as a cash house buyer. There is a 100% chance that I get asked this question from every homeowner who is looking to sell their home fast. “How long does a house sale take with a cash buyer?”
The answer to this question varies in each situation, which is exactly what I tell each homeowner. In this article, we’ll dive into the “Why” people often prefer to sell their homes to a cash house buyer and answer the proposed question of “how long does it take?”
How long is the process to sell your home to a cash house buyer?
Selling your house to a cash house buyer does not take long. In fact, the process can be done in 10 days or less. How long it takes depends on your timeline for selling your house. There are other factors that can speed up or slow down the sales process.
We’ll get into those here shortly, but first we need to set a couple things straight. Selling your home to a cash house buyer (aka private home buyer) saves you money in the end. How? You will never pay closing costs, high fees or commissions. PLUS, you do not need to spend any money on completing home renovations to get your house ready to list it on an MLS.
The main reason homeowners usually look into selling their homes to a cash house buyer is they need to sell their homes fast. Here’s a question to think about, “How long does it take to close the sale of your house with a cash house buyer vs. a traditional loan?
The traditional home selling process vs. selling to a cash house buyer
If you are entertaining the thought of selling your home using a real estate agent and listing it on the MLS, you will be waiting to close for months. According to this article written by Mortgage InGenuity, it can take more than 45 days to close on your home.
“The process is laborious, and it can also be nerve-wracking, especially if you do not know what to expect at what stage. The process is long, and it involves multiple steps that have to be followed before closing a deal.”
Purchasing a new home is a big decision and, not to mention, a large financial transaction. Whenever this much money is put on the line, there will always be a longer period of due diligence that everyone involved will want to complete.
Cash house buyers bypass everything that goes into securing a mortgage loan for a buyer. This includes home appraisals, home inspections, walkthroughs and income verification. They are only interested in offering you, the seller, a quick and easy solution to selling your home fast. But, before a private or cash home buyer can legally and officially close on your house, there are a couple of items that need to be completed. A professional home buyer, like us, will be there every step of the way to help you complete these tasks. Remember, most cash house buyers typically close on homes in under 10 business days.
From A-Z: A Cash House Sale
Typically, the process to sell a home to a cash house buyer remains the same, however each situation brings about its own unique challenges. The fact remains, a cash sale normally can be done in as little as 10 business days and you, as the seller, will be able to skip a few of the arduous and time consuming steps in the traditional closing process.
Below, I am going to show you a rough timeline of how long it normally takes to close on your house when selling to a cash house buyer.
Step 1—The buyer does a walkthrough and extends an offer : 1 Day
After reaching out to a private home buying company, like The Lewis Brothers Properties, a walkthrough is scheduled. After completing the walkthrough, an offer will be extended to the seller within 24 hours. After looking over the offer and negotiating terms with the buyer, the seller then accepts the offer.
Step 2—Seller asks for proof of funds: 1-2 Days
When a seller is trying to secure a mortgage loan from a lender, the bank will always verify that the buyer has the correct amount for a down payment on the home. When selling your home to a cash house buyer, there are no lenders or banks. You, the seller, will have to request what is known as “proof of funds.” Honest and professional private home buyers may choose to include this information in their offer letter. As a seller, you should always require proof of funds simply to verify that the cash house buyer you are working with is legitimate.
Step 3—Securing the title and escrow services on your home: 1 Day
An escrow company acts as a third party in the sale of your home. They are in charge of holding onto all the money and that all established items of this real estate deal are completed throughout the process of your house sale.
Step 4—Title search and history: 2-3 Days
The title search reviews your home's title history to ensure that there are no outstanding issues on the home like liens or an inheritor listing on the title waiting for the home. Cash house buyers need to know that before they buy your home, it is void of any issues regarding the title. This process typically takes 2-3 days, barring any alarms.
Step 5—Delivery of earnest money for the title: 1 Day
Earnest money is the money that the cash house buyer will put towards the purchase of your home. It helps ensure that the cash house buyer is willing to stick to the agreed upon terms of the sale.
Step 6—One final walkthrough with the cash house buyer: 1 Day
Typically, a day or two before you're scheduled to close on your house, the cash house buyer will do one final walkthrough. Why? The buyer will want to make sure that all the agreed upon items in the contract have been completed and the house is fully ready to be purchased. Basically, the cash house buyer will want to ensure that your home is in the same condition it was when this whole process started.
Step 7—It’s closing time: 1-2 Hours
Cue the amazing lyrics from Semisonic’s “Closing Time.” Once all the items in the contract have been completed, you’re ready to close on your house. In the sale of your home to a cash house buyer, there are not mountains of paperwork to be signed. The process is simple. Normally, when we close on a home, it only takes one hour.
H4: In closing, let's do some math
When you look at the entire process and add up the days, you are looking at a 10 day process to sell your home to a cash house buyer. There is not a faster way to sell your home in Ontario. If you need to sell your home fast, we buy houses in the Durham Region, Simcoe County or the York Region, we are the top local private home buying company.
As you’ve read, our buying process is simple and stress-free. If you are looking to sell your home in the next 30-60 days, we’d love to talk to you. Give us a call today at 905-260-9779 or, if you’d prefer we call you, click here and get the simple process started. Selling your home does not need to take 45+ days. If you’re in a situation where your home needs major renovations, you need to sell it fast or are facing a tough financial situation because of your home, we’re the company that will help you. Reach out today.
