Since the process of real estate selling in cash is much easier than the traditional home selling, the documents you would need and the closing cost you will face are pretty flexible as well. Then, who will pay the closing costs?
Mostly, the buyers will pay the closing cost some way or another, and it depends on the purchase agreement. Even if you are not a first-time seller, you will have to go through a lot of issues and that would exhaust you. There are a lot of parties involved, including the buyer, the buyer’s agents, lender bank, escrow company, title company, and sometimes state attorney.
But the case is different in your cash home selling, luckily. You would skip much of the issues you might have to face in the traditional home selling. But you can sell your house without repairs and fewer parties are involved in your cash home sale. There is a quite a bit less paperwork, a much shorter time frame, lower risk of the deal falling apart will be satisfying to you. We can make your deal more efficient and valuable. Just click here to learn more: Blue Eyes Properties, LLC
The concern of your closing cost:
Since your buyer will not have to deal with any lender and fewer parties are involved in a cash home sale, your buyer would skip a lot of potential fees related to the process, like credit, origination and processing fees, and paying mortgage points upfront. The list below will give you a good idea about the potential closing cost you would be dealing with whether your buyer will pay, or you would share the cost according to the purchase agreement.
Earnest Money deposit:
This is the money held in escrow by your potential buyer to show the seriousness in negotiation. How much money your buyer will keep held depends on many factors like your state, your market, and the contract you have agreed to. This earnest money is typically 1-3% of the purchase price.
Since lenders require an appraisal, and no lender is involved in this process, your buyer would be able to deal with the issue alone and thus skip the appraisal fees which would have cost $300-400 approximately.
Much like an appraisal, a property inspection won’t be required of your buyer. However, it’s up to the buyer to get one on their own. An inspection will find problems with the house, giving the buyer room to negotiate or even walk away if the renovations required are too involved. The cost will be approximately $200-800.
If you’re selling a large plot of land (especially undeveloped land) your buyer might feel the need to verify the property lines. This won’t be required of your buyer, but those in special circumstances, it might be worth it. Keep in mind, it’s pricey, though. It may cost $600-900.
Title search fee:
Whether or not your buyer chooses to get insurance, most states still require them to do a title search before the transfer of a property. This establishes the line of ownership and payment going back decades, ensuring that your buyer is actually able to purchase the house. The approximate cost will be $100-250.
This is the common duty of an escrow company to work as a neutral third party in the transfer and payment of money during the home buying process. But they wouldn’t work for free. You have to keep in mind that, buyers and you will have to split this fee 50/50. The exact fees depend on the company and the property.
To close your sale properly, you’ll need to the notary to witness the signing of documents. The cost depends on where you want to sign and close the sale: it could be around $100
Some states require a buyer’s and a seller’s attorney to oversee the sales contract and closing. The cost can vary dramatically, depending on how the attorney you hire bills this kind of service. You will, however, be able to negotiate and shop around for this service. The cost may be approximately $400-1500.
Now, who will pay the cost in your cash sale?
Now is the negotiation about who is going to pay what.
How you agreed on the purchase agreement will determine your participation in the closing cost payment. In this cash payment process, there is no lender involved to refuse to finance at the last moment it means the buyers have a low credit score and lose their job and still follow through the purchase just fine. Most of the fees we have discussed would fall to the buyer in one way or another. But many of them may be paid by you if the agreement says so.
The documents you may need ready:
Now, you are almost there to close your sale. Get the documents ready to make your cash home sale fast. If you fail to arrange your necessary documents at the right time, it will cause an unexpected delay that you wouldn’t like. We make the process much easier and make it faster with the best offer to your property. To know more, just click through this link: Blue Eyes Properties, LLC
As always, if you need any assistance, buying or selling your next home, contact us at Blue Eyes Properties, LLC, (941)216-5657 and we’ll help you any way we can. You can also email us at firstname.lastname@example.org
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