Are you currently selling your home and have received an offer from a buyer that is all in cash? If so, you may be wondering if you should take this offer or hold out for another that may offer more with financing. Here are some specific things to know about an all-cash offer.
Streamlined Purchase Process
Understand that a cash offer is going to be incredibly streamlined when it comes to completing the real estate transaction. With the buyer not needing financing, there is no need for them to go through the slow approval steps of buying a home that buyers typically face. The majority of the home buying process can easily be waiting for that loan to be approved, and now you don't have to deal with it.
Certainty And Security
When you have a cash offer on your home, know that selecting it will give you certainty and security that the deal will go through. One of the contingencies that the buyer has is the ability to walk away from the sale if they do not get a mortgage approval. This will not be the case with cash buyers, since walking away is not allowed near the end without some kind of consequence. This typically involves losing any earnest money that was offered to make the initial offer.
The buyer will have some negotiating power when it comes to a cash offer, and they'll likely try to buy the home for less than what they are asking. They know the advantages a cash offer brings to a real estate transaction, and will use that to make the deal more in their own favor.
Of course, there are many factors that you need to decide when rejecting a cash offer. Every day the home remains unsold is another day that you owe property taxes, utility bills, and home insurance on the property. Is it worth the risk of finding a higher offer if every day cuts into your profits? You can leverage financed offers that you have received in order to get a bigger cash offer, but that may not always be a guarantee that it will work. Remember that selecting a finance offer does not guarantee that it will go through as well, so you need to weigh the risk and reward that comes with it.
Now that you know some of the basics about all-cash offers, you'll know what to do if you get one for your home. Contact cash home buyers near you to learn more.