What documents do I need to sell my house privately?
There is an old expression that we want you to think about. “A bird in the hand is worth two in the bush.” This expression fits perfectly when it comes to selling your house to a cash house buyer (aka private home buyer.) If you need to sell your house and getting cash in your pocket quickly is your main objective (this is your bird in the hand), selling your home to a private home buyer is your best option. The question then becomes, “What legal documents do I need to sell my house privately?”
Before we talk about the legal documents that you’ll need to have prepared in order to sell your home privately, there are a few steps that need to be completed. The legal documents portion of the process only happens if the initial steps are agreed upon and laid out.
What are simple steps of selling your house for cash to a private home buyer?
There are basically five steps that need to be completed to sell your home privately. Those steps include:
Completing local research on your home (Seller)
One Walkthrough of your home after contacting a private home buyer (Buyer)
Accepting an offer that is given typically in 24 hours (Seller & Buyer)
Completing the Contract (Seller & Buyer)
Legal and Closing documents (Seller & Buyer)
In the paragraphs below, we outline each of these steps. The most important section below focuses on the legal documents that both parties need to complete before closing.
Completing local research on your home
Typically a seller will research comparable house sale prices in their market. A “comp” shows the seller what similar homes sold for in the last 6 months. The other research that is paramount, if you are looking to sell your home privately, is to research local private home buying companies, like the Lewis Brothers Properties. Knowing important information about the private home buyer will give you the confidence to pick up the phone and reach out. If you live in Simcoe County, the Durham or York region, simply search cash house buyers in your city and look for Lewis Brothers Properties on the first page.
One walkthrough of your home after contacting a private home buyer
After contacting a private home buying company, the seller will normally provide a little information about the home either on an online form or over the phone. The buyer will then set up an initial walkthrough. The buyer will then come to the house and complete an assessment. During the home assessment, the buyer will determine the current condition of the home and ask the seller some basic questions about the home’s history. Professional private home buyers will be able to give the seller an offer within 24 hours after the initial home assessment.
Accepting an offer that is given typically in 24 hours
Selling your home privately, or for cash, is not like the traditional buying process. There are no bidding wars or multiple offers to consider. This speeds up the process for selling your home. A cash house buyer will make you an all-cash offer within one business day after their walkthrough. At this point, it is up to the seller to accept or reject the private home buyers offer. When working with us, any offer we extend is a no obligation offer. Our experience in the real estate industry gives us the expertise to give sellers a fair market offer for their home in its current condition. If the seller accepts the offer, the process of getting all necessary legal documents complied and completed begins.
Completing the contract
After choosing a closing date, getting the home under contract is critical. This simply means that you have agreed to sell your home to the private home buyer. If the seller needs proof that the cash house buyer has the means (cash) to buy their house, they can ask immediately. Once proof has been established, the seller signs the Purchase and Sale Agreement.
Legal and closing documents
A professional private home buyer will outline all the necessary items that need to be completed on the day of closing. Here is a list of legal documents that the seller will expect to complete at closing when you sell your home privately:
Final Closing Documents. These are exactly what they seem to be. These documents are a list of items that the escrow company needs and the amount of cash that will be given to the seller.
Statement of Personal Information. This is a simple document that verifies the seller is who they say they are, legally speaking!
Traditional Liens Document. This is a document that states the seller has disclosed to the buyer that there are not any current or outstanding liens on the home being sold.
Mortgage Loan Payoff Document. Talk about an important document. It reveals how much the seller owes (hopefully not much) on their mortgage. This will have already been disclosed to the buyer, but this legal document is important for both parties to sign and complete.
Certificate of Title. This document simply states that the seller is legally saying that they have the right to sell their house, in this case, to a private home buyer.
Title Deed Document. It is the most important document for the private buyer. It shows that the seller has transferred ownership of the home to the private or cash house buyer.
In Conclusion
If you’re looking to sell your home quickly and need the process to be simple and stress-free, selling to a private home buyer is a great option. The legal documents that are needed are not complicated and the buyer will be there to guide you through the process. It is intended to be simple.
If you want to learn more about the easy process of selling your home privately, click here. If you live in Simcoe County, the Durham Region or the York Region and you need to sell your home quickly, give us a call today. 905-260-9779. Our team is ready to answer any questions you may have.
