How fast can a cash house buyer close? This is one question every seller wants to know. This article will answer that question for our company and give guidance on things to watch out for with any cash house buyer and/or wholesaler. Read on to learn more.
One of the most frequent questions we get asked from potential home sellers in Cleveland is “how fast can you close?” In fact, we get asked this question by EVERY single seller, even those who don’t have a specific deadline to meet. So chances are if you’re thinking about selling your house to a cash house buyer then one of your main questions is also “How Fast Can a Cash House Buyer Close?”
In this article we give the answer to this question for our company, Sesa Properties so potential sellers working with us know what to expect. We also give generalized guidance on closing time for different types of cash house buying companies and wholesalers. After this article you should have a pretty good idea of what to expect with us and other companies.
Q: How Fast Can Sesa Properties Close on My Property in Cleveland?
A: Our standard closing time on our contracts is 3-4 weeks from the time a contract is signed. If absolutely necessary and possible we can close in as fast as 14 days. If we know this is not possible we will tell you that upfront. We don’t promise things that we know are not possible. That’s bad business and just creates frustration and headaches for you.
This is one question where us (or any buyer) being completely honest and upfront with you is critical. You deserve an honest answer as the timing of the sale is a critical factor in your decision. So getting a completely honest answer to this question greatly reduces disappointment and frustration for you down the road.
We do try our hardest to accommodate you and make it convenient for you. BUT at the same time we are realistic and honest when agreeing on a closing date with you. It is critical that you make sure we, or any buyer you talk to are the right solution for your needs.
Meeting any deadlines that you have (ie. foreclosure deadlines, tax auction dates, moving plans etc.) is critical. It could mean the difference between selling your house and making some money or losing it for nothing. Time is a critical factor. In turn, if we can’t meet your timing requirement, we will tell you that upfront instead of wasting your time, causing you headaches and potentially putting you in a worse situation.
Is Sesa Properties the fast closing company in Cleveland? Simply put, no. However, we will give you a realistic closing period vs. promising you the moon, underdelivering and putting you in a really bad spot when the closing date you were promised comes and goes (and comes and goes, etc.). This sets expectations up front and helps you determine if we are the right solution for you.
COVID-19 Note: If you are reading this during the COVID-19 pandemic please do note that things have slowed down a bit for the closing process in Cleveland and from what we have heard… the entire industry. Title companies are understaffed and some employees are remote which has caused some delays in the closing process. In addition city offices are semi or fully closed with some employees working remote, which also slows the title transfer process. We continue to push the closing process and the title companies as fast as we can within their limits.
Things to Watch Out For/Be Aware Of When Getting a Closing Time From Any Cash House Buyer or Wholesaler
Please don’t take the following information as a broad generalization against an entire industry. There are many solid, honest companies out there looking to acquire your house or the contract to your house (in the case of a wholesaler). This is not meant to be a generalization about all cash house buying companies and/or wholesalers. But there are some things that you should be aware of when these parties give you a closing time.
As we mentioned above closing time is an important factor. It could mean the difference between you making money and losing your house for nothing. In turn, you need to make sure you understand what is realistic. You need to know if a company is just telling you what you want to hear or if they can actually close on the property when they promise to. So you should be aware of the reality of how fast a cash house buying company and/or wholesaler can close.
Many cash buying and/or wholesaling companies (again, not every one of them) that will tell you they can close in a few days or even a few weeks…even when they fully know that is not possible.
Type of Parties Trying to Put Your House Under Contract and Considerations For Each
First, its helpful to understand what types of companies are trying to get your house under contract for cash and how that affects the realistic closing time. The type of company can greatly determine how fast they can actually close.
The terms “we buy houses company”, “cash house buying company” and “cash buyer” get throw around a lot. But these can mean different things. Its also good to know that sometimes these parties are actually wholesalers just looking to get your house under contract and then assign the contract to an actual cash buyer. There is nothing wrong with this if you know what their intention is.
To keep it simple we can group the companies into three groups. The first group is wholesalers. The second group is cash buying companies that buy houses that meet their investment criteria. The third type is a hybrid company that buys some of the properties and assigns the contracts of other properties if necessary.
Just a quick note on this in case you were wondering…Sesa Properties fits into the third category. We go into every deal with the intention to buy it, but sometimes things don’t fall into place or the deal isn’t the best fit for us as a company. When this happens, no problem because we have a network of cash buyers that we can find one to assign the contract to if needed. Regardless, if we put a property under contract we will close on it.
- Wholesalers are firms whose strategy is to put your house under an assignable contract and then find a cash buyer to assign the contract to. These firms typically don’t either have the ability or the intention to actually buy your house. Their intention is to assign your contract for a profit. For wholesalers, especially smaller wholesaling firms closing in a few days or even a week is nearly impossible unless they have a cash buyer lined up with cash in the bank ready to close asap. The reason is that they need to market your contract and assign it to a buyer. You can imagine that if the price is too high or the property is not desirable then find a buyer for it becomes a slow, if not impossible situation. In turn, wholesalers are not realistically able to “assign your contract” in less than 14 (absolute quickest) -30 days (probably still a stretch), never-mind complete the closing process in that time. In turn, this is the slowest group to close.
- Cash house buying companies are typically flippers or investment firms looking to buy houses at a discount to either flip or hold as a rental investment longer term. These firms typically buy the property. The time they can close in will depend on several factors, such as if they have cash in the bank or need to get funding for the property. If they are using private or institutional money to fund the deal this will take more time and complicate the deal. Even cash buyers with cash in the bank ready to buy need more than a few days to close because the closing process takes some time because of title research, paperwork, signatures, etc. Cash buyers with cash that can close in 7-10 days are great, but do note that they will use this as leverage and most likely offer you a lower price.
- A hybrid cash buying/wholesaling company have the ability to buy properties but sometimes assign the contract. Whether the firm buys or assigns the contract may be dependent on many factors, such as the characteristics of the property itself, whether the property meets their required criteria after doing due diligence, funding, etc. What they intend to do with the property will most likely determine how long the closing process will take. Reference cases 1 and 2 above.
Final Thoughts – Conclusion
Because closing time is such an important factor in your decision you should have a true, honest answer for how fast a buyer can successfully close. You now know how long we typically close in and have a pretty good idea of how fast other types of buyers can realistically close.
One final thought to take away…make sure you ask the person making an offer not only how fast they can close but also if they are buying it or assigning it, and if they are using cash from their bank account or need to get funding. The answers to these questions (if they are honest), alongside the information in this article should help you gauge if their closing time is realistic.
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