Finding a buyer interested in purchasing your home is a significant milestone in the home selling process. The next major step is to finalize the sale details and close. Not all buyers take the same amount of time to complete that process, however. The way a buyer intends to pay for a home and their level of home buying experience impact how quickly they’re able to close.
Traditional buyers are home buyers who need a mortgage to pay for a home. Lenders don’t just give buyers money out of the goodness of their hearts. They do it to make money. That means that they’ll want to make sure the home they’re financing is worth financing and that the borrower is worth lending money to. Inspections, appraisals, loan approvals, and the other steps involved in closing all add up to traditional buyers taking a minimum of 30-45 days to close on a home if things go smoothly.
Cash buyers are home buyers who already have the funds to pay for a home. They don’t need help from a lender. Because of this, there’s no need to wait for a lender to approve a loan application. Cash buyers may still want inspections and appraisals done, but they won’t need to wait for the lender to approve the results. The cash buyer can do that themselves. This allows cash buyers to close more quickly, often in one to two weeks.
Professional Home Buying Companies
Professional home buying companies are a subtype of cash buyers. They pay for homes with cash they already have with the intent to use the homes to make a profit. If you need a buyer who can close fast, professional home buying companies are an excellent option. They can often close in as little as seven days or on your schedule. They only need to see the home once to make an offer and don’t usually care much about having an appraisal done. These companies make it a point to move through the process as quickly as possible.
If you want to have a better idea of how long you should expect it to take to complete the home selling process, you need to know what kind of buyer you’re working with. Typically, traditional buyers who need a mortgage to afford a home will take the longest, while professional home buying companies (a subset of cash buyers) are often the fastest. Keep that in mind when you’re deciding who to sell your home to so you can choose the buyer who is in the best position to meet your needs as the seller.
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