Cash for Keys Investors – Consult A Real Estate Attorney

We Pay Cash for Houses: Is It Right for You?

These days, signs advertising “we buy houses for cash!” are everywhere. For some, this is a great deal. If you own a property outright that is in disrepair and lack the time or funds to fix it up, this may be a solution for you. However, if you aim to make a bigger profit or are an administrator/executor of an estate selling a property, this type of deal may not be beneficial. Cash-for-keys investors usually pay less than fair market value (FMV) because they invest in repairs after purchase. But if you need to offload a property quickly or lack the funds or time for a rehab project to sell for FMV, this may be the best way to offload your property. Consult a real estate attorney to learn more.

Traditional Residential Real Estate Sales

In a regular residential real estate transaction, a knowledgeable realtor familiar with the area will list your home for the best possible price based on comparable homes. The buyer’s realtor will present your realtor with a contract, usually a Multi-Board Residential Real Estate Contract 7.0, standard in the Chicagoland area. Your real estate attorney will review the contract, order title work, prepare closing documents, and guide you through the process while working with the buyer’s attorney for a successful transaction.

Selling to a Cash Investor

When selling to an investor paying cash, they often use their own version of a purchase contract, which may be less favorable to you. They might also use the 7.0 contract but add an addendum to amend or delete paragraphs. There is usually an attorney review paragraph to protect both you and the buyer, allowing attorneys to modify parts of the contract if necessary. If presented with a contract, contact an attorney to review it before signing to ensure protection. Your attorney will handle details like ordering and clearing title to prevent future issues.

Estate Sales

If you are an administrator or executor of an estate, you have a fiduciary duty to sell the property for FMV. Hire a real estate agent familiar with the area to determine the FMV based on comparable homes and list the property for sale on the MLS.

The attorneys at Long Law Group can assist you with your real estate transaction, whether you are buying a home, selling a home, or if the property is in probate and needs to be sold. 

Contact us at contact@jlonglaw.com or 312-344-3644 to discuss your particular case.