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Although there are no required disclosures because the property is being sold as-is, there is an inspection period. The process will go faster, and the seller will get a better picture of the final sale price if they are straightforward about the necessary repairs. Nerhood explains:
“You’re still going to go through inspection because the buyer wants to know what they’re getting into. I get inspections on big-ticket items like the sewer and the foundation. If you’re selling as-is, you don’t have to worry about repairs. But say, for example, I’ve offered you $500,000 and find out the home needs $7,000 in sewer line repairs, then I have to adjust my purchase price to $493,000.”
What should a homeowner look for in a Los Angeles cash buyer?
The need to make a quick cash sale can make a homeowner feel vulnerable. Whether you’re working with a local or online cash-buying company, a seller should perform due diligence when working with a cash home buyer. Look at their track records and reviews.
“We’re in an age of information, so use it to your advantage. Be sure you’re working with a company that deals with sellers honestly and fairly,” Ortega says.
In addition, a seller should carefully review the contract to determine if a buyer is legit.
There are a couple of red flags to look for:
- Earnest money: This should be at least 1% to 3% of the purchase price and non-refundable after the inspection period. Some investors provide at least a $30,000 earnest deposit, although it varies from one company to another. A $100 earnest deposit shows that the buyer isn’t committed to the purchase.
- Inspection period: This should be a fraction of your closing time. For example, if your closing period is 30 days, a 10-day inspection period is fair. An inspection period that ends right before or on the closing date is a sign that a buyer may back out or negotiate a lower price at the last minute.
What is the timeline for a cash sale in Los Angeles?
Typically, your home can sell for cash in as few as seven to 14 days. Keep in mind that this isn’t always the case. If, for example, the county has tagged your home or there are liens against it, the timeline might be extended. Ortega shares a story:
“We recently worked with a seller who had moved out of state and hadn’t seen the home in more than five years. In the meantime, the county had put red tape all over the house. There was an abatement and the owner was instructed to tear it down. We were willing to work with the county on his behalf — take it off of his plate and make it as easy as possible. I bring this up because the escrow period can look very different for different people.”
Will a Los Angeles real estate agent oversee a cash sale?
It’s not unusual for cash buyers to work with real estate agents. Ornelas explains that homeowners may hire an agent for the added security of having a professional oversee the sale, vet the buyer, verify the funds, and get the best cash offer.
Sometimes, an agent will recommend a cash sale when a home has been sitting on the market too long. In some cases, Ortega says, if a home isn’t selling or if the homeowner isn’t happy with the agent, the real estate agent may let the homeowner out of the listing agreement without penalty.
“When you sell your home for cash, you’re sacrificing your equity for speed and convenience. If you want the best price on your home and you have time to wait, you need to go with a traditional sale. Keep in mind that if you’re listing your home as-is, you’re typically only going to get investors interested in a cash purchase. If a house needs a lot of work, it won’t qualify for financing. A real estate agent could potentially help you sell for a higher cash price to a fixer, but you’ll be paying up to 6% commission, so the net price might not be more for you,” Nerhood explains.
Selling your house for cash in Los Angeles
When you need to sell your home quickly in Los Angeles, it can feel overwhelming. This can be especially true if you’re in a financial bind or have a firm moving date. Fortunately, there are buyers and investors willing to pay cash for your Los Angeles home. And with a platform like Simple Sale, you’ll also see price estimates of what you might receive if you sell through a top local real estate agent.
Whether you’re selling a pristine midcentury home in Pasadena or a cottage in Venice Beach that needs a major overhaul, request a cash offer from a trusted cash buyer in Los Angeles whenever you’re ready to move.
Editor’s note: This blog post is for educational purposes only, not legal or tax advice. HomeLight always encourages you to reach out to your own advisor.
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