Questions About Selling a House for Cash, Answered Plainly

These are the questions about selling a house for cash that sellers ask me before they decide anything. They’re mostly about contracts, liens, taxes, and unusual ownership, the details that decide whether a sale goes smoothly. I’m Joe, and Richmond Property Buyers is my family’s company. I buy property as-is, with no commissions or fees charged by me, I pay the closing costs, and I close in about seven days or when you’re ready. For legal or tax questions about your own situation, an attorney or tax professional should have the final word.

Questions about selling a house for cash instead of listing

Is this a listing, a wholesale contract, or an actual purchase?

It’s a purchase. I’m not an agent, and I don’t put your house on the market. Some companies that advertise cash offers sign a contract and then sell that contract to another investor before closing, which is called wholesaling or assignment. That isn’t illegal, but you deserve to know which one you’re signing. Read the buyer’s name on the contract and look for an assignment clause. When it helps close faster, I sometimes partner with other local investors on a purchase, and if I do, you’ll know who is on the contract.

How is an as-is sale different from a regular sale with an inspection?

In a typical financed sale, the buyer’s inspector writes up a list of problems, and the buyer asks for repairs or a lower price. The buyer’s lender may require certain repairs too. In an as-is cash sale, I price the condition in from the start: I see the house, make my offer knowing what’s wrong with it, and don’t come back later with a repair list.

Do I still have to give the buyer Virginia’s disclosure form?

Usually, yes. Virginia’s Residential Property Disclosure Act generally requires the owner of a home to give the buyer the Real Estate Board’s disclosure statement, and that’s true whether the buyer is a family or an investor. The form is mostly a buyer-beware notice that tells the buyer to do their own research. Some transfers are exempt, like court-ordered sales and foreclosure sales. Ask your attorney or the settlement agent whether yours is one of them.

Money, liens, and taxes

What will my settlement statement show, and what will I walk away with?

The settlement statement starts with the sale price, then subtracts what’s paid on your behalf: your mortgage payoff and any other loans, delinquent taxes, liens or judgments, and your share of the current year’s real estate taxes. What’s left is your check. I pay the closing costs, including the settlement charges and Virginia’s grantor tax, and I don’t charge commissions or fees. Ask for a draft of the statement before closing and go through it line by line.

What if there’s a lien or judgment on the house that I didn’t know about?

That’s what the title search is for. If a judgment, a contractor’s lien, or an unpaid tax bill turns up, the settlement agent gets a payoff figure and it’s usually paid from the proceeds at closing. Sometimes a lien turns out to be old, already paid, or not really against you (a judgment against someone with a similar name, for example). The settlement agent can often clear those up with paperwork. It may take a little longer, but it rarely stops a sale.

Will I owe taxes on the sale?

It depends on the property and your situation. If it has been your main home, federal tax law lets many sellers exclude up to $250,000 of gain, or $500,000 for married couples filing jointly, if they meet the ownership and use tests. For inherited property, the tax basis is generally the home’s fair market value on the date of death, which often makes the taxable gain small. Rentals and land follow other rules. A tax professional can tell you what applies to you.

How does owner financing work?

Instead of getting all of your money at closing, you let me pay part of the price over time. The terms, like the down payment, interest rate, monthly payment, and length, are written into a promissory note, and the property secures it, much like a bank loan. It can work well if the property is paid off and you’d like steady income instead of a lump sum. It has tax and legal consequences, so have your accountant and attorney review the terms.

Unusual ownership situations

My parent had a reverse mortgage and has passed away. Can the house still be sold?

Yes. With the most common kind of reverse mortgage (an FHA-insured HECM), the loan becomes due after the last borrower dies. According to the Consumer Financial Protection Bureau, heirs who get a due-and-payable notice have 30 days to respond, and extensions can give them up to six months to sell. If the loan balance is more than the home is worth, the heirs can generally satisfy the loan by selling for at least 95% of the appraised value, and mortgage insurance covers the rest. Call the servicer early and ask for the timeline in writing.

Can I use a small estate affidavit to sell my parent’s house in Virginia?

Usually not. Virginia’s Small Estate Act (Va. Code § 64.2-601 and related sections) lets heirs collect bank accounts, vehicles, and other personal property by affidavit when the estate is small, but its definition of a small asset leaves out real property. The house passes under the will, or to the heirs at law if there isn’t one. To sell it, the settlement agent will typically need the will probated or an executor qualified, or a list of heirs or real estate affidavit recorded in the circuit court, plus the right signatures on the deed. This is general information, not legal advice. An estate attorney can tell you which route fits your family.

What if one heir or co-owner doesn’t want to sell?

Everyone on the title has to sign the deed, so I can’t buy the whole house over one owner’s objection. The usual first step is a buyout, where the owner who wants to keep the house pays the others for their shares. If talks stall, a co-owner can generally ask the circuit court for partition under Va. Code § 8.01-81 and following. In 2020, Virginia built several protections from the Uniform Partition of Heirs Property Act into that statute for all partition cases: a court-ordered appraisal, a chance for one owner to buy out the rest, and, when a sale is needed, an open-market sale through a broker. Partition takes time and money, so bring in an attorney early.

Can I sell a house that’s in a trust or an LLC?

Usually, yes. The trustee or the LLC’s authorized manager signs instead of an individual owner. The settlement agent will ask for proof of that authority, like the relevant pages of the trust or the operating agreement and a resolution, so gather those early. If nobody is sure who has authority, an attorney can sort that out before we sign anything.

Can I sell while I’m in bankruptcy?

Possibly, but not on your own. While a bankruptcy case is open, selling real estate usually requires the approval of the bankruptcy court or trustee. Filing a case also triggers an automatic stay that pauses most collection actions, including foreclosure. Talk to your bankruptcy attorney before you sign a contract with anyone.

Condition, and the weeks before closing

Will you buy a house with fire, water, or foundation damage?

Yes. Damage is priced into the offer, and you don’t have to repair anything first. If you have an open insurance claim, tell me and your insurer. What happens to claim money depends on your policy and, if you have a mortgage, on your lender, so get the answer from them in writing before closing.

What should I keep paying between signing the contract and closing?

Everything, until the deed is recorded. Keep the homeowner’s insurance in force, keep the utilities on so the house can be seen and the systems checked, and keep making mortgage payments if you can, because interest keeps adding up to your payoff. After closing, cancel the insurance and the utilities in your name. The settlement agent handles the final tax proration.

Protecting yourself

Why do I keep getting letters offering to buy my house?

Ownership records are public, and buyers use them. Some of those letters may be mine. I mail postcards and letters to homeowners chosen from data, such as houses that aren’t owner-occupied or are paid off, the same way siding and window companies or coupon mailers like Valpak reach homeowners. A letter doesn’t mean anyone knows something about your house. I don’t send marketing texts, so a text offer didn’t come from me. Before you answer any buyer, confirm the name, address, and phone number are real; the next answer explains how. If you’d rather not get the mail, ignore it or ask the sender to take you off the list. If it’s mine, call and I’ll remove you.

How can I tell whether a cash buyer is legitimate?

Start by looking up the company in the Virginia State Corporation Commission’s business records and confirming its address and phone number. Then watch for red flags. A real buyer won’t charge you anything to make an offer, won’t ask you to sign a deed anywhere except at a closing with a title company or attorney, and won’t promise you can stay and buy the house back later. The Federal Trade Commission warns that equity-skimming and rent-to-buy schemes often use exactly that pitch. Take your time, and have an attorney look over anything you don’t understand.

Still have a question?

Call me at (804) 293-0208 or send a message, and I’ll reply within 3 hours. For a walkthrough of each step, see how the process works. To weigh a cash sale against a listing, see my side-by-side comparison. If you’re behind on a mortgage, this guide to Virginia foreclosure covers your options. When you’re ready for a number, fill out the form below.

Learn The Pros and Cons Of Selling Your House To Local Professional Home Buyer– FREE Guide: 

Download our FREE Guide here.