When You’re Thinking of Selling Your House to An Investor or Cash Buyer Make Sure The Contract Has these 3 Clauses in it!
When you formally get an offer on your property from an investor that want to buy it, the paperwork should be very clear and concise. I personally believe the less paperwork the better, so long as that paperwork and contract is precise and covers all the pertinent areas. Too often people get bogged down by the lengthy contracts and boiler-point language. As long as you’re protected as the seller is case of default then all the extra jargon is trash and superfluities.
Items the Contract Must Have When Selling Your House to an Investor or Cash Buyer…
Aside from the obvious things like the address and purchase price of the property on which you’re trying to sell, here are some items you should make sure are included in the real estate purchase contract you receive:
- Finance Terms
While average home buyers often finance (mortgage) the house they are buying, most investors will pay cash. So see if the contract says ” Cash Offer”. While is may not seem like a big deal to most, the difference between a cash offer and one being financed by a bank is one that could make or break a deal. At the very least it could add as much as 45 days to the closing process. When you’re selling your house to an investor you’re doing so because of the convenience they offer. And often times you want to sell quickly, so the additional month or so that may be added onto the negotiations because you’re waiting for bank financing negates that convenience factor you were originally seeking.
- Buyer Assist
If you want the buyer to pay part or all of your closing costs, make sure that is in the contract! The offer should state the amount of closing costs the buyer will pay. Here at Swing Real Estate, LLC, the majority of times we pay all of the closing costs for the seller and that allows them to walk away with more money in their pockets.
- Closing Date
How much time do you need to move out or remove the items you want in the property? Common time frames are 30 days, 45 days and 60 days for normal home buyers. But for investors the common time frame is 5-20 days. Investors work quickly and since they do not need to wait on bank financing they are able to close fast. Issues that can affect this time frame might include the seller’s need to find a new home, the amount of time you have to relocate if you are moving from a job, and so on. We at Swing Real Estate, will work around your time frame and schedule. We will work with you to find a good closing date for you, so we can limit any inconvenience in the process.
Even though these forms are common and standardized and a good investor should have all of these terms in the agreement, it is still wise to educate yourself on the process and they key components to your contract to sell your property.