Why is a Cash Offer Better for a Seller?
There are more than one way to sell a house. Most are familiar with the conventional way of selling which involves working with a real estate agent. Another way is to sell house fast by accepting a cash offer. The best way to sell a house would depend on your situation. This article will answer the question, why is a cash offer better for a seller?
All Cash is better due to less risks involved
A 20% down is okay if no other offers are on the table. However, if you have multiple offers, it is probably not good enough given that the all cash offers are written with realistic pricing. Most sellers would want to deal with an offer that involves no finance or appraisal contingencies.
The fewer contingencies, the better. Without contingencies, it’s the best. When there are sudden and dramatic upswing in pricing, appraisal contingencies can halt an offer’s chances of success because of the fear of getting a low appraisal. When you sell your house for cash, specifically all cash, there is no need for appraisal so it’s a slam dunk.
Why do many go for cash offers despite having a lower price?
This is because with a cash offer from a legitimate buyer there are fewer hurdles and thus, more likely to close. For example, lenders require that houses are appraised before closing if the transaction value is more than 400,000 dollars. If the appraised value doesn’t match the amount of a mortgage and the seller refused to lower their price, it could mean a dead-end.
The truth is even buyers who are absolutely qualified for the required mortgage loan can get tangled up in a number of technicalities or contingencies. For example, qualifications of a buyer could change upon closer investigation. Or it could be that a buyer’s credit rating or financial situation changed due to being an identity theft victim or he or she bought a new car.
With a buyer buying your home in cash, you don’t have to worry about encountering any of these problems that could make the sale fall through. Moreover, cash sales take less time to close since cash buyers do not need the 30 to 45-day window if no loan is needed. Once the inspection is done and any other contingencies have been met, the closing can take place in less than two weeks. That means you’ll get your money sooner when you go with a cash offer.
Other reasons why a cash offer is better
Other than having to close faster and less chances of the sale falling through, most cash home buyers would buy your home as is, meaning no need to spend time and money for repairs and upgrades. Moreover, it’s more convenient. These types of buyers would do most of the legwork for you. You also don’t have to worry about cleaning up your home. They can also do that for you.
Ultimately, if you’re selling your house because you need cash as soon as possible and you want to move immediately, going for companies that buy houses for cash is the best option.
