When people think about cashing in on their home’s equity, they usually consider listing it on an open market with a real estate agent and waiting anxiously while potential buyers come knocking at their door (hopefully).
Maybe the reason for selling your home is to relocate for a job because you’re tired of dealing with expensive home repairs or are trying to avoid mortgage-paying trouble/foreclosure. Whatever the reason may be, no one wants to sit around waiting for their house to sell.
Unfortunately, the whole process can be long, arduous, and full of surprises.
Luckily, in North Carolina, cash home buyers purchase homes quickly without all the hassle. In this blog post, we’ll discuss what you need to know about getting a cash offer on your house, as well as some key points about NC’s cash home buyer.
What is a Cash Homebuyer?
A cash home buyer is an individual or company that buys houses for cash. Some are local real estate investors who live in your area; others are large home buying companies that purchase houses online in multiple markets using specific buying criteria.
An advantage of selling your house to a cash home buyer is that you don’t have to deal with the inconvenience of making repairs. Most homebuyers buy houses in as-is condition. Of course, the price they offer won’t be as high if your place needs serious work done, but they can make you a fair offer that doesn’t include realtor fees.
Why Sell To A Cash Home Buy
Ultimately, cash home buyers are a great option for those who want to sell their house quickly and without any hassle. In North Carolina, there are many benefits of going with a cash buyer, including no realtor fees, no repair costs, and a fast-closing process. However, it is important for you to understand how long it will take from start to finish when selling your house this way. We’ll break down the process in detail below so that you know what to expect!
How Long Do Cash Home Purchases Usually Take?
There are many benefits to going with a cash purchase. For one, most homebuyers can make you an offer for your home within a few days, some within 24-hours. Also, the closing process tends to take much less time than it does when selling through a real estate agent. For example, most companies that buy houses in North Carolina can close within 7-14 days. In addition, there is usually no need for inspections or appraisals, and the seller can receive their money in a matter of days after signing the contract, as opposed to waiting weeks or even months.
So how does that compare to the traditional home sale process? Well, let’s break it down.
- It takes on average 1-3 months to prepare a house to sell (repairs, decluttering, and staging)
- It takes on average 48-days to get an offer on a North Carolina home after listing with an agent on the MLS.
- It takes on average 30-45-days for a buyer to close on a house.
So total, you’re looking at 108-183 days to sell a house in North Carolina.
Other factors that can impact your selling timeline include:
- State of the NC real estate market (competitive market or seller’s market)
- Condition of your home (Recent renovations or not)
- Sale Price
- Buyer’s financial situation ( If they can afford the down payment, mortgage payments, or property taxes)
- Selling strategy (inexperienced agent or selling by owner)
- Time of year
Selling to a “We buy houses Concord” homebuyer can take far less time and skip several of these length steps along the way like home sale prep, listing with a realtor, and dealing with buyer finance issues. Even time of year won’t affect selling to a cash home buyer.
Cash Home Buyer Laws in North Carolina
In order to protect the consumer, there are a few laws in place that cash home buyers must adhere to when purchasing a property in North Carolina.
One such law is the “right of rescission.” This allows the seller three business days after signing the contract to cancel the sale for any reason. The cash home buyer must give the seller written notice of their intent to rescind within that time frame, and they must return any money or property given to them as part of the purchase agreement.
Another law that is in place is that sellers must disclose all material facts about the property they are purchasing. Seller disclosures in North Carolina may include any defects, repairs that need to be made, liens, or anything that may affect the value of the property.
North Carolina requires the buyer and seller to hire attorneys to serve as intermediaries and supervise the closing process /escrow (preparing title reports, removing buyer contingencies, and so on).
The Cash Offer On House Process in NC
If you’re interested in getting an all-cash offer on your house, it’s important to understand the selling process and steps involved. Below we’ll breakdown the process into several steps that the seller should expect in the homebuying process:
Step One: Are you ready to sell? First, you’ll need to decide whether or not you’re prepared to sell your NC home and how much it’s worth. If you’re unsure about the value of your home, consider getting a home appraisal. This will give you an idea of how much you should sell your house for.
Step Two: Research homebuyers in your area. Not all homebuyers are the same or offer the same things. You may find some cash home buyers in Belmont that you like better than others, so compare them all to see who you prefer. Once you narrow down your list, make sure to look at their website, read their Google reviews and find out if they are a BBB accredited business; little things like this can say a lot about a company. If you’re hoping to sell your house quickly, without doing any repairs, and would like to avoid paying agent commissions, make sure the homebuyer offers those important services.
Step Three: Request a cash offer. You’ll be able to submit your home information on their website or give them a call. They usually ask to schedule a time to view your home in person or set up a good time for you to do a video walk-thru. This helps the homebuyer get a better idea of the condition of your property and what repairs will need to be addressed after closing.
Typically within 24-hours, they will send you an initial proposal that outlines their terms and conditions for buying your house.
Finally, you’ll be able to choose the closing date. Just make sure every detail is outlined in this initial contract (purchase price, earnest money, how much they are paying in closing costs, no realtor fees, when the purchase is set to close, and that they are buying the house as-is).
This is when it would be helpful to have a real estate attorney lined up to look over everything and to represent you for the closing.
Step Four: Sell your house! After accepting the cash offer, you can start packing and looking for your next home! Again, your attorney should handle the closing process, which may require you to gather documents and sign paperwork. But on the date of your choosing, the closing will usually take place at a local title company. You’ll sign all final documents, hand over the keys, and receive your payment from the cash home buyer.
Contracts and other Pre-Sale Documentation
When a cash offer is made on your house, some key documents need to be in place before the sale can go through. The most crucial document is the purchase contract. This document lays out all of the terms and conditions of the sale, including the asking price, closing date, possession date, and may have some contingencies (appraisal contingency, financing contingency).
Other pre-sale documentation to have on hand include:
- Original sales contact
- Mortgage statement (payoff amount)
- Homeowners insurance records
- Homeowners Association (HOA) documents
- Home repair and maintenance records
- Receipts for capital improvements
- Manuals and warranties
- Past utility bills
The sale may include a home inspection contingency clause. This is usually written in the purchase contract in a traditional home sale to protect you and the buyer if there are any hidden structural issues with the house that must be fixed before closing on it.
However, since you’re selling the house in as-is condition, you’ll want to look for verbiage that says the buyer will be purchasing the home as-is, with no repairs to be made by the current homeowner. In most cases, cash homebuyers bypass a home inspection before closing.
When a cash home buyer makes an offer on your house, they will have to provide you with a purchase agreement and explain the payment process. The payment process is pretty similar to a traditional home sale transaction. However, a homebuyer won’t have to go through the pre-approval process, apply for a mortgage loan, or wait on the underwriting process.
Typically homebuyers don’t use bank financing or a home loan to purchase real estate, they have the funds to purchase your home with cash instead. To verify that, you can always ask for proof of funds and an earnest money deposit held at the escrow company.
However, you’ll want to use caution because there are home buying scams. Keep in mind that the seller shouldn’t have to pay for anything when selling their home to a homebuyer. The money should always flow from the buyer to the seller. So make sure to verify everything with the banks involved during the transaction, especially with wire transfers. After the transaction, it wouldn’t hurt to track your bank statements and credit score for identity theft.
Closing Documentation and Transfers
Real estate attorneys usually handle the closing process with a cash sale. So you’ll want to use an attorney specializing in real estate transactions. They should manage all of the legalities for you, including any final paperwork that needs to be signed at closing. Also, make sure to ask them about what documents they will need from you, so everything goes as smoothly as possible.
When the closing is complete, the title company will prepare a deed of conveyance which transfers ownership of the property from you to the cash home buyer. The title company will also notify all interested parties about the sale, including your mortgage lender and homeowners insurance company. You should receive all final funds within 24-hours after closing. Funds will either come in the form of a cashier’s check or wire transfer.
So, there you have it! The process of getting a cash offer on your house in North Carolina. It’s important to remember that each state has its own set of laws regarding real estate transactions. So be sure to do your research and consult with an attorney if you have any questions.
If you would like to sell your house for cash in the North Carolina or South Carolina area, feel free to reach out to Tiffany Property Investments today! We are a BBB accredited business with an A+ rating and have been in business since 2015.
This article is for informational purposes only. Be advised to seek legal advice when it comes to selling real estate in North Carolina.