Lots of jargon is used in real estate and sometimes it can get overwhelming trying to understand what exactly all of these terms mean. Some terms may sound very basic, but what do they really mean? What exactly does “sell as-is” mean and what does it mean when someone says they’ll buy your house with cash? Doesn’t every buyer have to show up with cash at closing in order to purchase a house?
To sell “as-is” means that a buyer is willing to accept the house in its current condition. Buyers have the right to conduct a home inspection after which they can ask the seller to repair or replace certain items, or renegotiate the purchase price based on findings during inspection. Buyers do have another option and that is to waive the inspection and accept the house in its current condition. Many investor buyers choose to accept a house in as-is condition if they are planning on remodeling and will be doing extensive repair work anyways. Sellers can benefit from working with a buyer that is willing to accept the house in as-is condition in order to assure that they will not have to spend money, time, or energy on repairs or have to renegotiate the purchase price. Buyers can also choose to terminate a contract if the findings during inspection represent more than the buyer is prepared to deal with. In that case, the seller would have to move onto another buyer who is willing to negotiate the inspection items and still move forward with the purchase of the house. Buyers who are willing to purchase the house in “as-is” condition represent peace of mind for the seller, knowing that the contract will not be terminated during inspection.
Some folks think that buying a house with cash means that the buyer actually comes to closing with a briefcase full of cash, but this is not the case. Purchasing a house with cash means that the buyer is not utilizing financing to purchase the property. The buyer actually has cash in the bank sufficient to be able to close on the house. The seller will receive their proceeds at closing no matter how the buyer chooses to purchase the house, whether cash or financed, but there are potential complications that exist when a buyer is utilizing financing. The potential benefit to the seller in working with a buyer that is purchasing with cash is that the buyer cannot be denied financing, resulting in an inability to close.
When selling a house in Denver, Colorado, it is important to understand the terms of the real estate contract regarding whether the buyer is utilizing cash or financing to purchase, and whether or not the buyer is choosing to perform a home inspection. Contact Property Fox if you’re downsizing or just plain done with owning your house and looking for a way to sell in as-is condition to a buyer purchasing with cash.