The Top 5 Reasons to Sell Your Southern California House For Cash
This is a great question. I'm often asked, "What is the difference between selling my Southern California house for cash and selling to buyers getting a loan?" As someone who also sells houses, I can give you 5 great reasons (I can give you about 10 more, too, but I will just give you the top 5).
Selling your house for cash to an investor like me is a quick and short process. There just isn't a lot of paperwork and a bank to slow the escrow down. You sign your paperwork, I sign mine, I transfer the money to escrow, escrow closes, and you get your money. When a bank is involved, the paperwork doesn't come all at once, it comes in parts, often over a month or two. And that's if the buyers are working with a good bank.
Aren't all houses sold "AS-IS"? No, during the inspection period, a buyer can ask for lots of repairs or a few repairs that cost a lot of money. If you've been through an inspection or read an inspection report, you know that inspectors point out every single little flaw with a house. That is their job. Well, if you were the buyer, wouldn't you want your house to have the repairs completed before you bought the house? And, a bank may require that certain repairs be made before making the loan. AS-IS means no repairs need to be made by you, the seller. Nice, huh?
No Real Estate Commissions or Fees
As an investor, I don't ask for any commissions. This is a straight sale from seller to buyer, no middle man. Typically, the listing agent gets 3% and the buyer's agent gets 3%, and that comes out of the seller's pocket. 6% is a lot of money! And, unlike other investors, I pay all of the escrow fees. To me, it creates transparency in the transaction. You won't find any hidden fees with me.
Contingencies in a typical real estate sale are many. On a California Association of Realtors' Purchase Agreement there are at least 3 contingencies: the inspection contingency, the appraisal contingency and the loan contingency. That is a lot of hurdles. The sale can be lost in any of those 3 areas. You can fall out of escrow on any one of those at any time. It's heartbreaking to fall out of escrow after 60 days because of the loan contingency. I know, it's happened to me!
No Loan Approvals
As I mentioned above, I have fallen out of escrow more times that I'd like to mention because of the buyer's loan being denied. And it doesn't typically happen in the first few weeks, it happens very late in the escrow. And the loan officer won't let you know how bad it is, until it's already lost. Why? The loan officer is fighting hard to make the loan go through. That's how he gets paid. It's truly one of the most frustrating and upsetting parts of trying to sell a house in Southern California.