Selling your house fast for cash is typically a quick, painless way to get rid of the unwanted property that is causing you trouble. However, even during this process, you may encounter a few obstacles that can delay the sale.
Selling your house fast usually involves a cash transaction with a direct buyer. This process can be over in a week or two, however some obstacles can happen, which will slow the process. Most of these obstacles can be avoided if you as a seller are actively working on handling them. Below are some common problems that may occur when selling your house fast, and how you can prevent them. In order to recognize them, however, first you have to be knowledgeable about the house closing process.
How Long Does It Take to Close a Sale when Selling Your House Fast for Cash?
The waiting period before agreeing on the transaction and closing the sale may vary. On most occasions, a sale can be closed in 7-10 days, if everything is set and done. However, this assumes that the situation is ideal – in other words, that there is just one individual on the title, the payouts are already prepared and there are no additional liens on the property. Several problems can occur, delaying this process and making it longer – which is still much faster than you would be able to close during a traditional sale.
Here are some issues that will force you to reschedule the closing date.
1. Being Dishonest with Your Buyer
Although direct buyers will most likely buy a house as-is, this doesn’t mean that you should be dishonest with them. If you have another person on the title, additional liens, debt on property taxes or something majorly wrong with your property, you must be upfront about it. The sale will include a title company, which will easily find these issues. Taking care of them will delay the closing process, and perhaps even ruin the entire sale. Not only that, but if you knew about these problems and you choose to not disclose them, you will likely face legal problems. Being honest is a must when you’re selling your house fast, and most of these obstacles can easily be taken care of in advance.
2. Low Appraisal
A direct buyer will typically give you a non-obligation offer for your home. Sometimes, however, a home appraisal may additionally be done. If the home’s appraisal value ends up being less than the offer, the buyer may demand a reduction in price. This rarely happens, but if you weren’t disclosing some issues, an appraisal company may find them and reduce the price. This is another reason why you should always disclose everything up front if you’re planning on selling your house fast.
Of course, you aren’t obliged to accept the new, lowered price, however doing so will commonly make the sale fall apart. Not just that, but, depending on the contract and the state you’re in, a buyer may be entitled to have a portion of the money refunded if the appraisal price is much lower.
3. Additional Liens
If you’re working on selling your house fast, additional liens may slow this process down. Each lien requires a payoff that has to be made to the title company in order for the sale to close. This may result in slowing down the sales, especially if there are special requirements in how the payments have to be made. Some lien holders, such as HOAs, may charge additional fees if you want to make payments fast. This may make the sale process a bit longer than expected.
4. A Title Has a Deceased Person on It
When there is a deceased person on the deed or the title, this will prolong the process as you will require additional documentation and verifications. The exact paperwork depends on the state and whether or not the property went through a probate. If not all of heirs are verified and if they all don’t agree on the sale, this will additionally slow the process down. Another thing that may delay the closing date are factors such as did the deceased person owed something on the house, was there a standard or a reverse mortgage, and similar. All of these problems can be solved, but if you don’t do that prior to the sale, an extra time will be required.
5. Uncooperative Divorce Partner
Selling your house during divorce isn’t an issue by itself. In fact, it’s one of the most common reasons why you may be selling your house fast. However, if two former spouses are arguing and fighting each other during the sales process, this may prolong the process quite a bit. Dealing with the house sale while also dealing with spouse’s demands is nerve wrecking and it can make the process longer than it should have been. The sale will be done quickest if both former partners are able to set aside their differences and work as a team, at least for a little while.
If you are facing bankruptcy, this is an obstacle for making a quick sale in some states. You may require a court to allow you to proceed with the sale, as your house is a part of the bankruptcy case. Be sure to check with your lawyer about the legalities of selling your house during an active bankruptcy.
7. Buyer Having Financing Issues
Sometimes, a buyer may be the one unintentionally delaying the closing process. If the buyer has any problems with the financing, this may slow everything down. Most cash buyers use hard-money lenders, as they can approve the loan much faster. However, even they sometimes can be a bit slow, especially if their relationship with the buyer isn’t the best. This is why if you want to sell your house fast, it’s important to find a reliable direct buyer in Wisconsin, such as Sparks Property Investors LLC.
Selling your house fast to a direct buyer is typically a safe, quick and stress-free process, however you have to be sure there are no said issues with the paperwork or your property. Even if you ran into some of these obstacles, don’t worry, as you can easily fix all of them. Just remember to try to deal with most problems before the sale of the home starts, as this will ensure everything goes smoothly.