5 Core Questions to Ask A Cash Home Buyer

If you’re looking to sell your home quickly, finding a cash home buyer can speed up the sales process. That’s because it allows you to skip the tedious process of listing your home, advertising the sale, and handling walk-throughs for those interested.

A cash buyer makes the process of selling your home fast and simple; there’s minimal hassle and you can start looking for a new home and begin the moving process very quickly.

However, it’s important to find the right cash home buyer—and that means asking them several questions to make sure they’re serious about the purchase.

1. Can you show me proof that you have cash on hand?

Every seller’s worst nightmare is to think they’ve sold their home, only to have the buyer back out last minute. If a cash home buyer says they have the money on hand to purchase your home the first thing you should ask them for is proof.

This may mean asking for a recent bank statement or a hard money letter. If they don’t have either of these things and instead say their “partner” will provide funds, that partner needs to be in on all and any discussions—otherwise, show them the door.

2. Have they purchased any other properties recently?

Whether the cash home buyer is looking to resell your home or turn it into a rental property, asking if they’ve purchased other properties recently can give you an idea of how serious they are about purchasing your home.

Someone who has recently purchased several other properties in the same area is more likely to have cash on hand and will be ready to purchase quickly, with the least amount of hassle.

3. Are you willing to sign an “as-is” contract?

Sometimes the buyer with best offer price isn’t the cash buyer you ultimately want to choose. In fact, some cash buyers intentionally over offer, so that you accept their bid, but then once they have a chance to have the home inspected they try to renegotiate.

If you can, convince the buyer to sign an “as-is” contract, which means they’ll cover the costs of any needed repairs.

4. Did you read the reports?

If the cash home buyer isn’t willing to sign an “as-is” contract, this question is crucial.

If there are repairs you know your home needs and you’ve reduced the cost of the home appropriately, the buyer needs to know—and needs to acknowledge that on paper.

Make sure to include any repairs that you know need to be done in your contract; they should be spelled out explicitly and it should be clear that you’ve already taken those things into consideration with the price you and this buyer have agreed to.

5. I’d really like to get a few other offers—how long is your offer good for?

Like you, cash home buyers generally want to move quickly; however, you shouldn’t let them stop you from reviewing your options. If you’re unsure about a particular buyer or if you truly think they are low-balling you, make sure to get other offers.

Just remember to factor in all of their answers to the questions above.

Don’t make a decision based on just price. After all, a high offer that falls through or that the buyer attempts to renegotiate halfway through the sales process can slow down the sales process considerably—and can eliminate any potential financial advantage.

Are you considering working with a cash home buyer? Share your concerns below or contact us with any questions you may have.