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Inspections: One week to book; 2 to 4 hours to complete
Cash buyers can waive an inspection in their purchase agreement, but it’s a very good idea to still have the property inspected “for informational purposes only.” This language in a purchase agreement reassures the seller that you’ll still go through with the purchase even if the home inspector finds issues.
An inspection can identify a serious hidden problem that could impact the home’s value. You also want to know what you’re getting into in terms of repairs, upgrades, and permits. It can take up to a week to book a standard inspection, and most inspectors will spend two to four hours in the home. Specialized inspections, such as a sewer scope or radon testing, might take more time.
Appraisal: 15 minutes to 5 days
An appraisal isn’t necessary in a cash deal, but Simpkins says that “unless it’s obvious that they’re getting a steal, I think they should still do an appraisal.” He points out that most cash buyers are buying, at the very most, once a year, and have less experience in the marketplace. Even though he closes five to eight homes a month, he’d still get an appraisal if he was doing a cash deal.
It’s a good idea to ask for an appraisal and include it in your purchase agreement to make sure that the home is worth the full purchase price. If you were working with a lender, the appraisal fee would be part of your closing costs; otherwise, it will typically cost anywhere between $300 and $500 for an appraisal.
An appraisal can take as little as 15 minutes (for a desktop appraisal) up to two weeks, including the time taken to write up the report. This time frame depends on many factors, such as the level of local market activity and how easy it is for the appraiser to find recent comparable home sales.
If the home appraises lower than the purchase price, it’ll be up to the cash buyer whether to move forward with the deal as-is or renegotiate. Ford says, “The biggest delay we’ve had is getting the appraiser out there; they’re going two or three weeks before they can get to an appointment,” which could add some time to closing.
Final walkthrough: 1 day
The day before you’re scheduled to close, you and your real estate agent will do a final walkthrough. Your agent takes you through the home to make sure that the previous owners have completely moved out and that it’s move-in ready. If the sellers agree to perform any repairs after the home inspection, you should check to see that they’ve been done.
Essentially, you’re ensuring that the house is in the same (or better!) condition that it was when you agreed to buy it.
Closing: 1.5 to 2 hours
When all these tasks have been completed, it’s time to close. Without the mortgage paperwork to sign, this should be pretty simple — less than an hour, and you’re finished. But Pohl has seen some closings in which the buyer was paying cash drag on for more than three hours because of improper purchase agreements.
In one case, she says the parties “were walking in and out; they didn’t have a Realtor and didn’t have a properly executed purchase agreement. In the end, the buyer paid for the seller’s fees so we could get it closed.” Even though you can skip some steps in a cash deal, you still need experienced professionals to help with paperwork.
Adding it all up
When you add everything together, here’s the absolute fastest you could close on an all-cash deal: about two weeks.
If you’re ultra-efficient, you could shave some time off: Ford notes that he’s had cash offers close in as fast as seven to ten days. Keep in mind that many of these steps, such as an appraisal and your home inspection, can happen at the same time.
