The home-buying process is long, arduous, and can be a hassle. Selling your home to cash buyers comes with issues unique to that situation that you might not realize. Each area and state has specific guidelines for cash buyers that you may not be aware of, which will further complicate your real estate selling process if overlooked.
Cash offers on homes do not mean someone will hand you a check for $300,000. It also does not mean you will have to lug trash bags of bills to the bank. Instead, a cash offer means the buyer will likely put down a higher good-faith deposit to show they do not need to borrow much from mortgage lenders.
A cash offer sale is less likely to fall through because the buyer has to put down much more in a good faith deposit, thus increasing the risk of a fall-through. Most of the time, cash buyers consider the purchase price of the home a deal they want in on, which is why they make their offer in cash. Therefore, you can rest assured the sale will likely go through seamlessly.
Through this fully explanatory guide, you will learn about various laws regarding cash home buyers in NYC, the selling process of cash offers, and ways to complete a home sale to a cash buyer. Continue reading for all the information you need to start your real estate journey today!
How Long Do Cash Home Purchases Usually Take?
Cash home purchases are often quicker than non-all cash purchases. This real estate transaction usually creates faster closing, but the timeline can vary due to the housing market.
Cash offers are more desirable in hot real estate markets with more buyers than sellers.
As mentioned, a cash offer is much more reliable and stable than an offer with only a small good-faith deposit.
They are also much quicker to close on the home because you do not have to go through bank approval processes and appraisals. Instead, the home seller works with the buyer and a realtor to complete all home inspections and appraisals.
When you eliminate the presence of banks, mortgage lenders, or mortgage loans in your home-buying process, you shorten the amount of time it will take to close the deal.
Here is how the average cash offer process on a house goes. First, the home buyer will make an offer, which the seller accepts, which usually happens in one day.
Then, over the next few days, the seller verifies that the buyer has money. This transaction often happens when the seller requests proof of funds and earnest money. Usually, the bank or lender will verify their capital, but with an all-cash deal, it is up to the seller to do so.
After verification of the proof of funds, the buyer will present earnest money to the seller, review the home’s title, and go into escrow. Overall, this is a multi-day process but likely will not take more than 2-3 days.
Once the title inspection comes back, you are ready to begin inspections and the home appraisal! Third-party inspectors perform them, so you may have to schedule them a few days out. The actual inspections and appraisals only take a few hours to complete, but for bigger homes and older homes, it can take a few days.
In a cash offer, appraisals are unnecessary, but experts say you should still perform them unless you are 100% certain you are getting a steal of a deal. After the appraisal step, there will be a final walkthrough, then the closing process, all of which should happen in about a day and a half. After this, the process is complete!
Overall, a cash offer home buyer can expect to own the house in about two weeks from the time the seller accepts the offer. If you are very efficient, you might be able to cut this down to about ten days, but you should expect it to be about 14 days.
Cash Home Buyer Laws in Queens
When dealing with the NY housing market, you must obtain a real estate agent and an attorney if you want to sell your home. Real estate agents work as advisors to sellers and buyers to ensure both parties are getting the most beneficial deal for themselves.
The attorney creates a contract of sale and sometimes includes a rider with additional terms you should negotiate with the buyers.
For buyers, you only need to obtain a real estate agent to help you find homes in your price range, understand comparable pricing, and help you determine the price at which you should make the offer.
One thing to note about the home-buying process in New York is that there is no law in place to stop either party from walking away from the sale at any point in the process.
Once a formal contract is signed between the seller and buyer, the seller is legally bound to the sale. However, until this point, they are not legally bound in the State of New York.
After a seller accepts the money from the buyer, the real estate agent and an attorney will draw up a contract quickly. The seller can legally walk away from the sale during this waiting period. According to the laws in the state, they can even though a verbal agreement has been made.
The Cash Offer On House Process in Queens
You might be wondering about the details of a cash offer process in Queens. Here, we will go through the documentation, contracts, and inspections you must do. One thing to note about selling and buying homes in New York state is that your real estate agent must have an agency disclosure form.
Contracts and other Pre-Sale Documentation
Once the buyer presents a cash offer and the seller accepts it, real estate agents and attorneys of each party work together to draw up a contract for them to sign.
In addition to this contract, there are a few key pre-sale documents to note. Documents may include HOA disclosures if the home has ever been in foreclosure or other disclosures like the home’s age and valuation. One important document is a municipal lien search.
A municipal lien search is similar to a title search and may be done in conjunction with a title search in some states.
The municipal lien search includes information on unresolved code violations, building permit issues, and unpermitted structures on the property. These events can cause issues for future homeowners, which is why a municipal lien is so important.
For certain homes, you might need a lead-paint disclosure. Check with your real estate agent to see if this applies to your situation.
A home inspection is crucial to the home-buying process. These inspections include a visual examination of the house’s physical structure, from roof to foundation. A home inspection is necessary to minimize unsuspected difficulties and unsafe conditions.
The inspection usually takes about 2-4 hours, and you must schedule it a few days in advance. At the end of the inspection, the home inspector will send the clients an inspection report covering their findings.
The payment process is quite simple when a buyer makes a cash offer. First, the seller’s real estate agent presents them with a cash offer from buyers. This offer will include at least 20% down in most cases, but in some cases, it can be much more.
Once the offer is accepted, the buyers give the sellers their down payment, often in the form of a check or wire transfer. Then, closing documents are signed, and the sale is complete!
The buyers will then make the rest of their payment to the seller or work with a bank to complete the cash sale.
Closing Documentation and Transfers
The last step of selling your home to a cash buyer is for the sellers to transfer the title to the new owners and take care of any closing costs. On your closing date, closing documentation should be provided, including the initial escrow statement, the proof of homeowners insurance, and the certificate of occupancy.
Your real estate agent and attorney should supply you with these documents and any others pertinent to the town, city, county, or state you buy in.
How to Sell Your House to a Cash Home Buyer in Queens
For sellers, the best way to find cash home buyers is to find a realtor to help you look for them. With an agent, you can take a back seat in looking for a cash buyer and let the agent do the searching.
Once they find a cash buyer, they will bring them to you so you can determine if you want to accept their offer. After you accept the offer, the buyer will give you the agreed-upon amount, then your agent and attorney will draw up the contract.
Once you and the buyer sign the contract, your agent will set up all inspections and disclosures you must tell the buyer about the house. This process takes the longest, but once it is complete, you are at the finish line in terms of selling the home!
If you want to buy or sell a house fast in Queens, we hope this quick guide has been helpful! We buy houses New York homeowners are trying to sell. Be sure to obtain a prolific and legitimate real estate agent to help you along the process, and you will be in your new home in no time!