Selling your home can be daunting, especially if this is your first time. However, understanding the market and the type of people who may be interested in purchasing your home can go a long way toward making it a smooth process. Below are just a few potential types of buyers who might be looking at your house as their next purchase.
- All-cash Buyers
Some purchasers may be ready to pay you all cash for your property. These individuals are much more flexible than the average buyer because they do not have to wait for their bank to finish underwriting to obtain money to purchase your home. They may ask for a shorter closing period, but they may also be more flexible with how long you have to vacate the home.
All-cash buyers could be any type of purchaser, from those who want to live in your home to real estate investors.
- Contingent Buyers
These buyers have built in a contingency in your contract. A contingency means that they will only complete the purchase of your home if some other event takes place. The most common contingencies are getting financing and selling a prior home.
Contingent buyers can be tricky because you may have the purchase all ready to go, but if something falls through that is beyond your control, you may need to start the selling process all over again with another buyer. Sometimes you can push out deadlines to accommodate for contingencies, but you will need to be somewhat flexible with these purchasers to make things work smoothly.
- Buyers Using a Mortgage
The vast majority of buyers who are going to be homeowners will use a mortgage to purchase the home. The type of mortgage that a potential buyer is using will dictate a few things about the purchase. For example, if the buyer is using a VA loan, a termite inspection will always be required. Other types of mortgages may have additional requirements as well. Below are few examples of potential mortgages that may be used.
- Conventional
- FHA
- VA
- ARM
- USDA Rural Housing Loan
Each type of mortgage has slightly different requirements. Most of these will affect the buyer directly, but they can affect the overall transaction as well. Specifically, you may need to have additional inspections or certain aspects of the home may need to be repaired before the purchaser can finalize the transaction.
Regardless of what type of buyer is interested in your house, it is important to keep an open line of communication. Knowing that your buyer needs to complete the transaction up front will help you adjust your expectations and timeline as necessary.
If you are preparing to sell your house, it’s always wise to consult an attorney as early in the process as possible. Contact us today to see how we can help you.
