How The Closing Process Works With A Cash Buyer

How The Closing Process Works With A Cash Buyer

The Closing Process

If you are planning to sell your house, you might be curious about how the closing process works with a cash buyer. Honestly, it’s not very different from the usual home buying process, but there are a few key points to know before you proceed with the sale.  

Usually, the closing process takes a fair amount of time to get everything in order, so most realtors will outline a 12-step process. Still, you don’t necessarily have to worry about completing each step because an escrow and title company will handle everything on your behalf.

Still, it’s understandable if you need more details, so here’s a quick breakdown of how the closing process works when you sell your house to a cash buyer

The closing process: 12- step escrow closing process with a realtor

Generally speaking, you need to go through 12 closing process steps to seal a deal, such as:

  • Find an escrow
  • Title and Insurance
  • Legal counseling
  • Negotiations
  • Home inspections
  • Pest inspections
  • Offer renegotiation
  • Determine the mortgage interest rate
  • Decide on any contingencies
  • Earnest money and deposits
  • Walkthrough the home
  • Sign the paperwork

Now, let’s talk about each step and how they may or may not be different from a cash buyer.

Sell Your House FastHow The Closing Process Works With A Cash Buyer

Find an escrow

An escrow is a neutral third party that coordinates all of the financial aspects for cash buyer and sellers.

The idea is that an escrow won’t have a conflict of interest in the deal, so they can make sure that the agreement is fair and no one feels cheated.

The escrow only releases funds once all of the documents, signatures, and loans are in place. This way, you can rest easy knowing that you’ve dotted all of the I’s and crossed all of the T’s.

Title and insurance

The next step in the closing process is clearing the property’s title, so there’s no question about who owns the home. Verifying the property’s ownership history through public records determines whether or not the information on file is accurate and up-to-date.

But there’s also title insurance involved, which protects you from financial losses if a property doesn’t have a clean title.

Legal counseling

Provided that the title is free and clear of any liens or judgments – and the seller has the legal right to sell the property – a lawyer can help you determine whether or not you should proceed.

No matter what, if you have any concerns whatsoever that you are being cheated on any property sale, it’s absolutely best practice to bring legal counseling on board.


The negotiation phase is usually where most cash buyer and sellers begin, even though it actually takes place in the middle of the sales process. During this step, cash buyer and sellers exchange offers and counteroffers, eventually agreeing on a sale price.

Home inspections

A home inspection gives buyers the peace of mind that the property they’re buying is worth the price.

Any home can look beautiful on the outside, but it can still have significant maintenance problems, such as poor plumbing for electrical wiring. Often, defects discovered during home inspection delay the deal if the seller won’t fix them. This is one of the many things you need to worry about when you sell your house.

Pest inspections

Pest inspections are part and parcel with home inspections, and in some parts of the country, the local housing authority will require them before they sign-off on a purchasing agreement.

Offer renegotiation

After you gather all the inspection information, you can renegotiate the offer or choose to walk away from the deal altogether.

Think of the renegotiation phase as an off-ramp of sorts if things aren’t going well and you just don’t feel right about the sale. Remember that it’s never a good idea to sell your house or buy a property under duress.

Determine the mortgage interest rate

Here’s where the process is different from cash buyer! You don’t have to consider mortgage loans and interest rates, which will speed up the deal if the cash buyer already has the funds ready and waiting for approval. Sell your house directly to cash buyer!

Decide on any contingencies

Contingencies are another part of the closing process that’s unique during cash deals. Usually, a cash buyer will insist upon contingencies just in case something was missed along the way, or someone made a mistake.

Earnest money and deposits

Also, earnest money and deposits don’t play a big role in a cash sale because the escrow company will handle all the fine print. In some cases, a cash deal can proceed with one lump sum payment but not always.

Walkthrough the home and sign the paperwork

The final walkthrough is to last step for the buyer to see your house and make sure that everything is still as it was once they made an offer for your property.  If everything looks good, then they will go into the escrow office to sign all the paperwork and finalize the deal – the culmination of all of the hard work you’ve put in over the last few months. From their, their bank will wire the funds so escrow can close! 

Receive your check

The final step you have been waiting for! Finally, now that escrow has closed, they will send you a check in the mail so that you can receive your funds – or in most cases, also be able to wire the funds into your account directly! Hallelujah, you are done! 

That’s the gist of the long, 12 step closing process when you are working with a realtor. As you can see, its no short process that can be done in a week. But the good news is, it doesn’t have to be that way! When you sell your house to a cash buyer, they can significantly cut that time down.

For instance, most of the houses that Mrs. Property Solutions buys, closes in 2 weeks – not 45 days like with a realtor. Let’s take a look at the differences in how it could look when you sell your house to us… 

Closing fast, sell your house with a cash buyer 

If you want to chop off more than half of the items on that list, then sell your house to a cash buyer like Mrs. Property Solutions! This is really the way to go! Everything is still done by the book, with escrow there to mediate the transaction but since we, the cash buyer, do not use a bank for financing, most of the items on the checklist just are not necessary. Let’s take a look at what that process entails:

  • Open escrow
  • Gather any necessary documents
  • Sign the closing documents
  • Get your money!
How Closing Works With A Cash Buyer | Sell Your House For Cash

Open Escrow

Since we do so transactions every year, we already have a title and escrow company all lined up and ready to go. Once we, the cash buyer, open escrow, our escrow company will request a preliminary title report so that we can find all of the information on the property. The nice part is that there’s really not too much you need to worry about in this process – you pretty much just sit back and wait for title to do their job.

Gather any necessary documents 

Once the preliminary title report comes back, If there is any other required documentation that we need from you, this would be the only time we would need some help on your part. There is a good chance there might not be any documentation needed on your behalf, it just depends on what they got back on your home. For instance, you can inherit a property from a “long-lost relative” who left the property with a slew of financial problems like a mortgage that’s near default and there may be some information we need to gather to move the process along.

Sign the closing documents 

the closing process

Next, once the escrow has the closing documents at the ready, they can either send a notary to your home so that you can sign off on their findings from the comfort of your home. But it’s perfectly fine to walk into their office to sign the papers if you’re more comfortable with that kind of setting to sell your house. From this point on, the escrow will have everything they need to move forward.

Get your money

The last and final step in the closing process is getting your money! We, the cash buyer, will wire the funds to close and once the escrow company received our funds, they will coordinate all of the money transfers and wires that go along with any real estate deal. It’ll also disperse any funds that need to be paid off, and then, they’ll send the signed documents over to the county. Once the county receives all the necessary paperwork to record the transaction, they will “record” the sale. Then, the transaction will be considered complete, and the escrow will release any remaining funds via wire, or they can send you a check if you prefer.

So, that’s generally how the closing process works when you sell your house to a cash buyer!

As you see, we aim to make the closing process as quick and painless as possible! Ultimately, how long it takes to close on a cash deal depends on how well the escrow company can coordinate the financial side of the equation.  And you will be happy to know that Mrs. Property Solutions only works with the best and fastest escrow companies out there to handle every transaction they do! So sell your house to a cash buyer now and we will definitely make it a fast and smooth transaction for you

Hannah Ray

Hana is in charge of our social media, marketing, and online presence! She manages our Facebook, YouTube, and Google my Business posting. She is also in charge of creating helpful blog content that provides educational information concerning home sellers in a bind that needs to sell their house fast. When she is not working, she enjoys being a new mom and spending time with her two little ones.

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