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November 2021

What is a short sale on a house

What is a short sale on a house?

When a lender agrees to accept a lower mortgage payback amount than what is owing in order to ease the sale of a home by a financially troubled owner, this is known as a short sale. The outstanding loan debt is forgiven by the lender. A short sale is not the same as purchasing a property at a foreclosure auction or one that is genuinely owned by the bank, sometimes known as an REO or real estate-owned property. When a home’s value has dropped and the mortgage holder owes more than the home is worth, a short sale is only possible with the agreement of the lender. The homeowner in this situation has negative equity and may need to sell the house.   Are you looking to sell a house fast in New York for cash? Get in touch with us or get an instant offer now!   Is there a difference between a short sale and a foreclosure? A short sale differs from a foreclosure. In a foreclosure, the bank takes possession of the property and attempts to recoup its costs by selling it. A bank understands that it will not recoup its investment in a short sale, and it is thought to be a better choice than dealing with the red tape of foreclosure and then dealing with a separate transaction.   Who benefits from a short sale? For the buyer, the seller, and the lender, short sales are a mixed bag. If you’re a seller, a short sale will hurt your credit, but not as much as a foreclosure would. You’ll also be evicted from your home without receiving any compensation, making it difficult for you to locate another somewhere to live. A short sale, on the other hand, can help you avoid foreclosure and its severe consequences. If the homeowner can persuade the lender to record the debt to credit bureaus as “paid in full,” a short sale is less detrimental than a foreclosure. The buyer obtains the home at a lower price, but it almost certainly has issues — think fixer-upper — and the transaction must go through a lot of red tapes to be completed. A lender may even demand that a buyer pay closing costs that would typically be borne by the seller. The lender suffers a financial loss, but it is unlikely to be as large as it would be if the property were foreclosed on. In a short sale, the sale proceeds are less than the amount required to pay off the seller’s mortgage obligation and closing expenses. Everyone who is owed money must agree to take less, or maybe no money at all, in order for this contract to close. As a result, short sales are complicated transactions that proceed slowly and frequently fail. In most cases, everyone gains something from a short sale, though everyone also loses something. In the end, a short sale is all about avoiding the worst-case scenario.   Should you sell your home through a short sale? Whether or not you should proceed with a short sale is determined by your unique circumstances and what is most likely to benefit you in the long run. You may not have much of a choice if you can’t afford your mortgage and home values in your neighborhood have decreased. A short sale may be able to help you maintain some of your credit by avoiding a foreclosure on your record. Consider your alternatives carefully to determine what is most likely to work in your scenario, and then go with what you believe is the best option for you.   Are you looking to sell a house fast in New York for cash? Get in touch with us or get an instant offer now!   How long does a short sale take? A short sale might take anywhere from a few weeks to several months. Short sales take longer to complete since they are more complicated deals. In addition, the original lender must analyze the short sale offer before deciding whether or not to accept it. If the lender believes that continuing through the foreclosure procedure will net them more money, the short sale request may be rejected. Working with a real estate agent who has handled short sale deals before will help you save time. A short sale is one type of real estate transaction in which you will require the assistance of an expert agent or attorney. Because not all real estate brokers are trained to handle short sales, make sure you talk with one who can show you proof of particular training and a proven track record. Having a real estate agent on your side who understands short sales and has successfully negotiated with others can improve your chances of closing the deal.

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How to Sell a Teardown House

How to Sell a Teardown House

Buying and selling a property does not always include purchasing a brand-new, fully functional home. After all, this isn’t HGTV, so you might have some difficulties selling. When you have a teardown house, selling it is one of the more difficult situations. This means you’re not selling to average homebuyers, but rather to contractors and investors looking to profit from the house. We’ll go over some of the actions you’ll need to do to develop and sell your teardown home here.   What is a Teardown House? Simply said, a teardown house is one that needs to be demolished. A teardown house, more specifically, is one that has significant structural and cosmetic flaws. This indicates that repairing the house at a fair budget is not possible. This does not necessarily imply that the house is fully lost. But it does mean that no homeowner or investor will purchase and refurbish a home with the intention of living in it or profiting from it.   How to Sell Your Teardown House To sell a teardown house, you must sell it to someone who is interested in the land but not in living there. Most likely, whoever buys the house won’t even keep it; they’ll demolish it right away. As a seller, this gives you some opportunities to learn about the market and how to make money on a fixer-upper.   1- Find out how much your house is worth in today’s market. It should go without asking but know how much your home is worth. This isn’t the final figure for how much you should sell your house for, but it will give you an idea of how much the land is worth. Also, compare your home to the homes in your neighborhood. Is it a similar situation? If not, consider that an investor or builder will be looking to make a lower sale in order to raise the property’s worth to that of the surrounding area. This may provide you with some negotiating leverage.   2- Locate Reputable Builders. Many builders would scout active communities before tearing down homes to build new houses or apartments. In fact, if you own a fixer-upper, you may already have heard from some! You don’t want to end up with a builder who undersells their consumers, and you don’t want to just sell your house. If you’re certain you don’t want to renovate, hiring a builder who specializes in flipping houses can help you sell your home quickly and fairly, with no concern for market fluctuations.   3- Settle on Your Own Terms–And Know Your Neighborhood. Look into who is selling in the area and what is going on with that home. Are there any new residential structures in the works? Or are your realtors erecting huge luxury mansions in place of single-story ranch houses? If that’s the case, figure out how much those new homes are worth and use that to determine how much you want to sell your property. You won’t receive that much for your land in the market, but you can definitely get a better deal than you expect.   4- Check Out Habitat for Humanity. Consider donating or selling to Habitat for Humanity if you are a more philanthropic person or simply want to get the property off your books. This group buys homes and renovates them to provide high-quality, affordable housing for those in need. Give to someone who could genuinely use it if you want to give back.

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Flip Tax

What Are the NYC Flip Taxes? How to Avoid Flip Tax?

Flip taxes, also known as transfer fees, were first established in New York City in the 1970s and 1980s as a mechanism for co-op buildings to raise funds so that they could engage in substantial capital renovations without raising maintenance rates for their owners (something no shareholder enjoys). Today, the flip tax provides significant revenue for buildings while preventing purchasers and investors from buying and selling co-op units in the hopes of making a rapid profit, particularly with HDFC apartments. The use of flip taxes to acquire revenue for construction without incurring additional costs is a reliable strategy. It is a charge paid to the cooperative by a buyer or seller after selling or transferring an apartment. In addition, flip taxes might be used to pay capital renovations. To ensure that the flip tax is upheld by the courts, cooperatives and co-ops must treat all shareholders equally. Transfer taxes in New York City typically vary from 1% to 3% of the building’s ultimate sales price. The building’s closing costs include flip taxes.   What Are the NYC Flip Taxes? There are a number of flip taxes to pick from. Before making a selection, carefully consider the advantages and disadvantages of each flip tax. Flip transfer taxes come in two forms: flat cost and per-share amount. Both require the cooperative to establish a consistent flip cost for all members. The flat fee flip tax also compels cooperatives to set a single fee for all shareholders. Shareholders must pay a fixed dollar amount per share under the per-share amount. This strategy benefits larger property shareholders as well as people who purchased properties at reasonable prices years ago. It’s a complete disaster for stockholders who own smaller buildings or who purchased them recently. Nonetheless, it aids in the calculation of flip taxes by maintaining a certain level of order. It’s vital to note that the flip tax is not the same as the mansion taxes in New York City.   Who pays the Flip Tax? The expense of flip taxes is usually covered by the seller. Buyers will, however, pay if the cooperative requires payment of this tax. As a result, buyers must study their real estate contract carefully to determine whether the seller will pay the NYC flip taxes. The amount of flip taxes paid by a seller or buyer is determined by the cooperative’s requirements. They want varying amounts because there is no set amount that applies to all cooperatives. If the seller sells the property for a high price, certain cooperatives will make a greater demand. The objective is to increase the cooperative’s reserve money. Cooperatives can vote to adjust their flip taxes. Before the board makes a final decision, every shareholder must vote. Only if the majority approves can they change the flip taxes.   What is the average flip tax in New York City? Flip taxes are usually computed at 2% of the gross sale price, but they can range from 1% to 3%. However, in HDFC co-op, where flipping is strongly banned, flip taxes can be as high as 20-30%. (or even higher).   How to Avoid Flip Tax The only way to avoid a flip tax is to avoid selling your property in the first place. If you are a sponsor, though, you are likely excluded from paying a flip tax. However, if you can convince a buyer to pay or divide the flip tax with you, that is usually the only method to avoid having to pay a flip tax as a seller. CashBuyersNY can buy your house quickly and make you a full cash offer within 24 hours, or we can buy it when it’s convenient for you. You’ll love dealing with us because we’re investors and issue solvers who can buy houses and fix problems at the same time. You can contact us now or also can get an offer if you are ready to sell the house fast in NY for cash.

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How to Determine Home Values

How to Determine Home Values

Did you make up your mind and are willing to sell your house? Here comes the difficult part: figuring out how to calculate home values. Sellers are typically engrossed in their own recollections and attribute an emotional value to their home. It might be difficult to determine the value, and it can also lead to the house being overvalued in contrast to comparable homes on the market. You can avoid falling into this trap if you have a good understanding of how to determine the value of a home or property. While it may be difficult because you love your home, real estate is a business, and it all boils down to numbers, and NYC property values are constantly changing.   Here are the things you should know about how to determine the value of home:   1- Holding Costs When homeowners try to sell their houses on their own, they often become caught up in the web of online marketing. Many consumers seek a real estate agent after a long time of failure in the hopes of speeding up the process. Unfortunately, there is no way of knowing how long your home will be on the market as a listing, whether you opt to sell it yourself or list it with an agency. This must be considered while assessing the value of your home. Because consumers narrow their internet searches based on house values, you may want to consider lowering your asking price to differentiate yourself from the competition.   2- Comparative Market Analysis A CMA (comparative market analysis) is a tool that helps professionals assess the worth of a home. This is followed by a comparison of the most similar properties in the area, with predetermined values for additional amenities like a two-car garage against a one-car garage. Furthermore, if the nearby comparables contain amenities that the home does not, these predetermined values would be subtracted from the average selling price of the most likely properties. Regardless of the listing type you select to sell your house, it’s a good idea to have your own CMA. Based on the current market value, you’ll know how much your home is worth. If you do so, you will avoid being startled or embarrassed by what you may regard as an insultingly low offer from a buyer.   3- Repairing Cost It is usually preferable to be forewarned rather than forearmed, and this is especially true when selling your home. Having the property examined is a smart idea.If there is a serious issue with the property’s structure, they may require you to fix it or make other minor repairs before closing. If you want to do the repairs yourself, acquire at least two estimates from professionals and create a budget that is reasonable. If you have correct information regarding the project’s timeline and price, you can make an educated decision. You’ll have to determine if you want to put more money into the house and make renovations to increase the profit margin or sell it “as-is.” You may get an exact current market value by subtracting this cost from the asking price. You’ll be able to tell if an offer is reasonable for your house based on other home values.   4- Commissions There will be commissions if you choose to engage with an agent when determining home values, regardless of the listing style you choose.The commission is calculated as a percentage of the sale price. In a typical real estate transaction, each party pays roughly 3% commission, so a property selling for $400,000 would deduct $24,000 from your earnings alone, without including the conventional seller’s closing expenses. The closing agent and the real estate agent’s office may also charge transaction fees.   How CashBuyersNY can help you? For over a decade, our company has been purchasing homes in the New York market. So you can trust us if you want to sell a house fast in New York City and its surrounding areas. CashBuyersNY specializes in assisting New York residents with simple property buying procedures on their own schedule. CashBuyersNY can buy your house quickly and make you a full cash offer within 24 hours, or we can buy it when it’s convenient for you. You’ll love dealing with us because we’re investors and issue solvers who can buy houses and fix problems at the same time. You can contact us now or also can get an offer if you are ready to sell the house fast in NY for cash.

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How to Sell House in Probate

How to Sell House in Probate

How to Sell House in Probate? A probate sale can appear to be a challenging task. It’s absolutely not straightforward. It can put a family under stress, but with understanding and compassion, it can be made much simpler. It doesn’t have to be tough to sell a probate property. When a property owner passes away, the property is sold in probate court. When an owner dies without having named an heir, the property is turned over to the courts, who subsequently appoint the closest relative as the executor to sell it. After all of the formalities for selling have been completed, the probate court will distribute the proceeds to the beneficiaries. Here in this article, we have covered How to Sell House in Probate?   What Does it Mean When the Property is in Probate? When a property owner passes away, his or her assets must be transferred, and the property becomes subject to probate. A probate court will decide how those assets will be distributed. Hiring a top-notch, experienced local real estate expert is the short solution to “how to sell during probate.” There’s even a certification for it: the Certified Probate Real Estate Specialist (CPRES), which can help you identify a probate real estate agent. If you hire a CPRES-certified agent, the process will be much smoother for you. Here is a simple description of how the probate sale procedure works to make things even clearer. Keep in mind that certain states’ probate laws are much simpler, while others are far more difficult.   Appointment of an Administrator or Executor If the decedent has named someone as executor in his or her will and that person is willing to serve, that person is appointed. If no executor has been named, the nearest relative will be named administrator, either by the court or by other relatives.   Sale of the Probate Property First, appraise the property. You may simply discover appraisers by conducting a fast online search, or if you have already chosen a real estate agent, they will almost certainly have a referral. The house has to sell for at least 90% of its evaluated value. The house is presently on the market and being advertised. Your agent will put the house on the multiple listing service (MLS). The buyer’s agent will be aware of the property’s status as a probate sale. A buyer must submit an offer with a 10% deposit, which the sellers may or may not accept. The offer is subject to court approval, and even though the buyer’s offer was approved, the seller is not bound to them. The estate representative will next submit a request to the court, through their probate attorney, to ratify the transaction. If all parties agree, the sale will be formalized in court at a later date. When an accepted offer is made on the property, all heirs receive a Notice of Proposed Action, which simply states the details of the proposed sale. The heirs have 15 days to evaluate the notice and object if they have any. If no objections are raised, the sale may be completed without the need for a judicial hearing.   The Overbidding Process For A Probate Property The judge will inquire whether anyone in the courtroom wants to bid on the property before approving the initial buyer’s offer. The following bid must be 5% plus $500 higher than the first buyer’s offer. Additional bids will be accepted by the judge in a similar manner to an auction until the highest bid is made at the confirmation hearing. If a new buyer wins, the previous buyer will receive a refund of 10%. When a buyer accepts an overbid, he or she must pay a 10% deposit in the form of a cashier’s check. The successful bidder presents the check to the executor at the hearing. After that, a contract is signed. There can be no contingencies in this contract, and escrow normally closes within 15 days of the hearing.

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How to Find Homes in Pre-Foreclosure

How to Find Homes in Pre-Foreclosure

Let’s explain what is Pre-foreclosure before we show you how to find homes in pre-foreclosure. Pre-foreclosure homes, as the name implies, are properties that are still in the early stages of the foreclosure process. When a lender files a Notice of Default, a home enters pre-foreclosure. When this occurs, the property owner has two options: repay the debt and have the status reversed, or sell the property before it is repossessed. The second alternative gives an excellent opportunity for a real estate investor to get an undervalued real estate investment. This is owing to the fact that the property owner will be under a lot of pressure to sell quickly and will be more willing to accept a low offer. Other benefits of purchasing pre-foreclosure houses include: When making an offer, you are unlikely to face any competition. The purchasing procedure is quite quick. Unlike buying at an auction, you have the opportunity to inspect the investment property.   How to Find Pre Foreclosure Homes Pre-foreclosure houses can be found through a variety of techniques. When it comes to finding these investment properties, there are plenty of possibilities. Furthermore, there are a number of real estate investment tools available to help with the process. In any case, here’s how to find homes in pre-foreclosure in 2021.   1- Use real estate websites Pre-foreclosure listings are available on various real estate investing websites. You’ll also get access to the information you need to evaluate any property on the market. In fact, a real estate investor can find the appropriate investment in less than 15 minutes with this search engine!   2- Work with a real estate agent When it comes to real estate investing, working with a real estate agent is always a realistic alternative. In reality, finding experienced agents who specialize in the same type of real estate deal that you are looking for is not difficult. You should use a real estate agent who is knowledgeable about the property repossession process if you are buying a pre-foreclosed home. Working with one will help you avoid making some of the usual mistakes that new real estate investors make while dealing with the foreclosure process. This, of course, does not apply to you if you are an experienced investor.   3- Sift through public records Off-market houses for sale are frequently found in public records. Furthermore, anyone who is eager to go through this data can do it for free. Even better, you can employ a third party to mine all of the pertinent data for you. When looking through public documents, look for any Notice of Default letters that have been issued in the area, as well as any Lis Pendens and Notice of Sales. The owner’s address and name are also included in the public records, making placing an offer considerably easier.   4- Search newspapers Although it may appear to be an outdated practice, scanning local newspapers is still a viable option in today’s real estate market. When looking for pre-foreclosed homes, most newspapers feature a legal notice section, which is where you should focus your attention. It contains a list of homes that are expected to be auctioned off in the near future. However, legal notice sections do not contain a lot of information on the income property, so the real estate investor will still have to put in a lot of effort to get a lead, which may include acquiring more homeowner information.   5- Explore your real estate network Real estate agents aren’t the only ones who can help you buy a home before it goes to a pre-foreclosure auction. Get the word out to everyone in your real estate group to increase your chances of landing an investment. This covers everyone from mortgage lenders to real estate attorneys that have assisted you in the past with closing deals. Real estate wholesalers are another group of professionals who deal with pre-foreclosure listings. For instance, you might know a wholesaler who is well-versed in a specific area as well as the types of listings that are currently on the market.

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How To Sell Your House With Tenants

How To Sell Your House With Tenants In NYC

Do you want to sell an investment property or a house in New York City? The selling process can be difficult while someone is living in your house. Here we have discussed how to sell your house in NYC with tenants. As a landlord, you may want to sell your property at some stage. Even though you have tenants, it is still your property, and you have the option to sell it. In some circumstances, you’ll be able to inform your tenants without causing a problem. You also don’t want to lose your tenants and be stuck with an empty property while your house is on the market. However, the renters have rights, and you must ensure that you are not infringing on them. We’ll go over some of the most typical issues that arise when selling a house with tenants in NYC.   Are you looking to sell a house fast in New York for cash? Get in touch with us or get an instant offer now!   If you want to sell a house with tenants in New York City, there are a few options. Always ensure that you are treating your tenants fairly and providing adequate notice. It is not only the law but also the proper thing to do.   1- The Lease Situation What is the status of your tenancy? If you’re on a month-to-month lease, it shouldn’t be too difficult to get out of it. You’ll need to give your tenant a sufficient amount of notice, usually 30-60 days. Things are a little different if you’re in the middle of a fixed-term lease. If you wish to sell in the middle of a lease, you’ll need to either sell the property to an investor who will uphold the term or provide your tenant a reason to leave. Early-termination clauses are included in some leases, allowing you to quit the lease early in specific circumstances. Remember that under the fair housing act, the tenant has rights as well, and if you violate those rights, you could face consequences.   2- If You’re Dealing With Difficult Tenants You should be able to remove your tenant without difficulty if they have broken their lease. However, if your renter refuses to go, the eviction process can take a long time. Evictions are something that most landlords aim to avoid at all costs. You’ll be able to sidestep the eviction process and move on from the property with cash in hand if you sell your house directly to tenants. Many direct buyers will just assume the lease and continue doing business as usual. If the renters break the lease, the buyer will proceed with the eviction process as needed. Furthermore, a direct sale will save you the time and effort of listing, marketing, and showing the home, all of which will likely increase friction between you and your difficult tenants.   3- Selling Directly A direct sale is advantageous for homeowners who need to sell their house with tenants in NYC for a number of reasons. Investors are eager to take over a property with an existing tenant, especially if the tenant is in good standing. They save time and money by not having to advertise, market, or display the property. They won’t have to go through the trouble of screening tenants or doing background checks because those tasks have already been completed. Even if the property has a troublesome tenant, an experienced investor will not hesitate to pursue eviction if the renter is in breach. They’ve probably done it before and aren’t concerned by the procedure.

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Advantages of Selling Your House to a Cash Buyer

What Are the Advantages of Selling Your House to a Cash Buyer?

Are you planning to sell your house in the near future? If that’s the case, you’ve most likely done a lot of research to learn more about the home selling process. Of course, you’ve probably read thousands of articles about how to increase the value of your property, make it more desirable to buyers, and get it ready for sale. But what if you don’t have time to go through the typical house-sale procedure? What if you don’t have the money to do repairs and renovations?   Are you looking to sell a house fast in New York for cash? Get in touch with us or get an instant offer now!   Have you thought about selling your home to a cash buyer? Whether you agree or disagree, this piece is for you. Continue reading to learn everything you need to know about the benefits of Selling Your House to a Cash Buyer.   1- No Realtor Fees If you want to sell your house in the traditional style, we recommend hiring a realtor. They offer a lot of local knowledge that will benefit you. They can assist you in selling your house more quickly and for a higher price. Real estate agent services, on the other hand, come with a heavy price tag. For assisting you in selling your home, most agents charge a commission fee ranging from 3% to 6%. In addition, in many buyer-seller transactions, the seller pays for both realtors. At the end of the day, you could be paying up to 12% of the earnings from your house sale. To put it another way, if you sold your house for $260,000, you would owe more than $31,000. A real estate agent is not required when Selling Your House to a Cash Buyer, saving you tens of thousands of dollars in realtor fees alone.   2- No Lengthy Inspections or Appraisals of The Property One of the most advantageous aspects of Selling Your House to a Cash Buyer is that you can avoid typical home inspections and assessments. Buyers and/or lenders generally request and/or require both of these services. Naturally, banks and mortgage businesses will not invest in a home until the condition and value have been established. However, scheduling an appointment for these services can take several weeks. Home inspections and appraisals are also expensive, costing between $300 and $450 each.   3- You Don’t Have to Spend A Lot Of Money On Repairs or Renovations The majority of homeowners invest tens of thousands of dollars on preparing their homes for sale. Home repairs, updates, and minor renovations account for the majority of these costs. But what if you don’t have that amount of cash on hand to prepare your home? You could put your house on the market as-is, but it will significantly reduce the amount of interest you receive from potential buyers. As a result, your home may lie on the market for months before receiving a serious offer. A cash buyer, on the other hand, will make you a cash offer regardless of the condition of your home. A cash buyer may be your only option if you need to sell your home but don’t have the time or money to renovate it.   4- Non-Invasive Home Tours All of the preparations and costs we’ve discussed thus far in the typical house selling process are in place to attract buyers and produce offers. Providing home tours is a crucial step in obtaining an offer. Buyers will organize a private tour of your house with their agents (or independently). If you have an agent, they will take care of the tour, but you will have to leave your home while it is taking place. You will be responsible for the tour if you do not have an agency. In any case, it requires you to take time out of your day to show strangers through your home, which may be boring, intrusive, and inconvenient. There will be only one tour if you work with cash purchasers. A certified representative from the cash purchasing company will come to your home to assess it so that they can make you a fair and accurate offer.   You can contact us now or also can get an offer if you are ready to sell the house fast in NY for cash.   5- Skip the Cleaning and Staging If you’ve been keeping track, the standard home selling procedure can cost upwards of $50,000, including real estate agents, inspections, appraisals, and upgrades. There are, however, additional expenditures to consider. In the traditional real estate market, a home’s cleanliness and staging are critical to attracting buyers and receiving offers. Most buyers will avoid a home that is filthy, stinky, and has soiled floors. As a result, many property sellers hire domestic cleaning services to get their properties ready for private tours and open houses. Furthermore, properties that have been professionally staged sell far faster than homes that have not been professionally staged. These services, on the other hand, can cost hundreds of dollars each month per room. To put it another way, having your home staged would cost thousands of dollars every month. Cash purchasers are unconcerned about your home’s cleanliness or staging. They understand that stains and filth, as well as left-behind belongings, have no bearing on property prices. As a result, you won’t need to clean or stage your home yourself, nor will you need to hire someone to do it for you.   6- Quick and Guaranteed Closing When you contact a house cash buyer for a free cash offer, you should hear back within a few days and have your offer in hand. Most cash purchasers will close in 7-14 days if you accept their offer. This is due to the fact that their closing process is guaranteed. In contrast, there are no guarantees when selling a house the traditional way. At any point, the buyer can back out. For a variety of circumstances, they may also be rejected.   How CashBuyersNY can

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