The real estate prices in many places have been on the rise, and the prices of houses in places such as Los Angeles have jumped 6.6% in 2021. Due to greater demand, you are more likely to get more offers for an all-cash home purchase. You may have many questions about selling your home so we decided to research this using Los Angeles as a prime example. We asked a few with experience in this field, how do I sell my house in Los Angeles? Read on for some crucial information on how the sales process works.
Note: Laws and regulations may vary widely depending on where on the planet your property is located. The real estate market is also very different in areas around the globe. We recommend you talk to professionals in your area before proceeding, and when in doubt, get legal counsel or work with a REALTOR.
What Is an All-Cash Offer?
Many people misunderstand the all-cash offer in a house sale. Buying a house with all-cash means the buyer does not take any financing for the real estate purchase. The seller may receive 20% of the amount in cash and the remaining amount by cashier’s check. The buyer can also transfer the amount electronically.
Steps in Selling a House for Cash
Hire a Real Estate Agent
Finding a buyer for the all-cash deal is not easy. When the thought of how to sell my house in Los Angeles starts troubling you, it’s time to hire a real estate agent, as they make the whole process easier for you. All you have to do is reach them and tell them about your home. You can also show the property that will allow them to evaluate its condition and decide the best price.
According to a recent report, the house sales in Los Angeles County have jumped by 65.8% year over year. Most sellers hire real estate agents to get the best price.
Talk With the Buyers
Once you contact the real estate agency, they will start sending information to interested buyers. The median price of California homes is 2.5 times higher than the median national home price. The reason for higher real estate prices in Los Angeles is the demand consistently exceeds supply.
If the buyer agrees to the price and sale conditions, you need to complete a Purchase and Sale Agreement contract.
Verify Proof of Funds
Since the buyer is not getting any finance, you need to make sure the buyer has the required funds to close the deal successfully. Most house owners will ask for 2-3% of the sale price upfront. To verify the proof of funds, you can ask the buyer to show bank or investment statements. The real estate agent will facilitate the process for you.
Hire Escrow and Title companies
To ensure the sale goes smoothly, you need to hire title and escrow companies. The title company ensures the property boundaries are drawn correctly. It will also ensure the property ownership is transferred to the buyer after the full payment is made.
The escrow company takes the responsibility of managing all documentation processes. In some cases, the real estate company does it by itself or hires an escrow company to do the work. The escrow company will also facilitate the transfer of funds and complete all legal paperwork to complete the sale.
It is always a good idea to work with a real estate agent in all-cash home deals. The reason is federal agencies look at all-cash deals suspiciously as they are common methods used for money laundering.
To sum up, these are some crucial steps in selling your Los Angeles home for cash.