If you’re contemplating getting cash for house in Sarasota, you might wonder if this process is legal and why homeowners work with cash buyers in the first place. The good news is that selling a house for cash is perfectly legal, as long as you own that home!
Sellers are not obligated to work with buyers who need mortgages, and cash sales offer many benefits over traditional buying and selling options. Before you decide the best choice for your home, consider some frequently asked questions about cash for houses. As always, discuss your options with a real estate agent, lawyer as needed or visit this website, so you make the right decision for yourself and your family!
Is getting cash for house legal?
Home sellers are not legally obligated to only accept offers from mortgage loan buyers, and buying a house for cash is perfectly legal. The only legal consideration is if you have the title to the house free and clear, meaning there are no second owners of the property or liens that need settling before you can sell. While a cash buyer will usually perform a title search, a seller should always note such liens when selling.
Also, a seller should never try to hide or misrepresent anything about the home’s condition! While buyers will also typically schedule an inspection, sellers should never fabricate information about needed repairs, dangers such as mold or asbestos, and the like. As long as you, as the seller, are truthful and honest about the home’s ownership and condition, you can sell a house for cash versus working with a mortgage buyer.
Why sell a house for cash?
Selling a house for cash has many advantages over working with buyers who need a traditional mortgage. In some cases, you might not even be able to sell your house to someone needing a mortgage loan!
Buyers use a house as collateral so a lender can foreclose and resell it if the buyer fails to repay their loan. A home in very poor condition has little chance of reselling, so lenders might not provide a mortgage for homes in disrepair. Since cash buyers don’t need to worry about collateral for a loan, you can sell a house for cash even if it’s in disrepair or not up to local building codes.
Buyers paying with cash also don’t need to worry about getting loan approval! In turn, there are typically few if any delays when you sell your house to a cash buyer. You can then get your money quickly and use it to pay down debt, or invest and have that money work for you.
Selling a house for cash and getting that money quickly also means being able to walk away from a property that has become a “money drain.” For example, you might have inherited a home you don’t want to occupy. Selling it for cash, fast, means being able to avoid property taxes, HOA fees, and utility costs just as quickly!
Are there still closing costs when you sell a house for cash?
Virtually every home sale comes with closing costs! These costs typically include a title search and title insurance for the buyer, taxes, surveys and inspections, and fees for agents or lawyers.
Most buyers who pay cash for homes will absorb those costs and lower their offers accordingly. Cash for home sales might also mean no real estate agents and their fees, so your closing costs are often lower with cash sales than traditional buyers.
Do cash homebuyers really buy a house in any condition?
Most cash home buyers know that sellers cannot work with mortgage buyers if their house needs major repairs and isn’t up to local codes. In turn, they often expect to tour homes in poor condition. Many such buyers also want to buy “distressed” properties so they can offer a lower price to sellers, then fix up that house and resell it for a profit.
This isn’t to say that you’re guaranteed to find a cash buyer for your house, or that a buyer is somehow legally obligated to buy your home simply because you prefer or need a cash buyer! If a home is so damaged that the buyer feels it would be too costly to repair, he or she might not make an offer no matter your asking price.
If you still have questions about getting cash for a house in Sarasota, you can talk to a real estate agent or attorney near you. There is also no reason why you can’t call up a cash buyer and ask him or her your questions about the process. They can explain your options, the types of homes they want to buy, and if a cash sale is right for you.