Burks Logan posted an update 1 week, 3 days ago
What is a cash offer and why consider it when selling a house?
A cash offer is when a buyer wants to purchase your property in an all-cash purchase, which means there is no mortgage loan or other type of financing involved. Sellers are attracted to sell house for cash since there is no risk the buyers financing will not go through, and you get to sell your house faster than the traditional house sale.
What’s the difference between traditional home sales and a cash offer for my house?
When you go for a cash offer, the buying and selling process is slightly different than it would be a mortgage involved. First, the process is faster in general. Thanks to no mortgage application, documentation, or underwriting, and there is no appraisal involved.
When you are a buyer, you are still required to sort out the title policy and insurance, show proof of funds, and sign closing documents. Nonetheless, closing can still be done in as short as two weeks.
cash for homes is considerably faster than with a mortgage loan that averages 47 days to close.
Here are more ways the traditional home sale process differs from cash offers:
With cash sales, there are fewer contingencies. There is usually no need for sale contingency, and on the buyer’s end, there is no need for financing contingency.
Without a lender, in cash sales you do not have to worry about appraisals. There are cases though that a buyer may still require an appraisal, especially when the investor is looking to get a sure return of investment.
With cash sales, the closing process is faster and a lot simpler. The buyer will sign the title, settlement statement and deed, give the payment (cashier’s check or wire the money), and receive the keys. Paperwork is also less since there is no financing involved. Closing costs are also reduced without the lender fees.
What You Should Consider If You Are Selling A House For Cash
If you are a seller, chances are you will encounter a cash offer or two, particularly if your property’s location is attractive to investors or in an affluent market.
There are many types of cash buyers. Some are house flippers, some buy and hold properties as rentals. Then there are retirees who use their savings to avoid mortgage financing costs. Wealthy buyers who have money to shell out large amounts of cash. Then there are cash home buyers like The Cincinnati Cash Property Twins that can buy your property directly and close in two weeks.
Here are the pros and cons of selling your house for cash that you have to weigh in before accepting a cash offer:
Pros of cash home sale:
No risk of buyer financing falling through
Usually no appraisal
Avoid some contingencies
Cons of cash home sale:
Usually lower than other offers
A cash buyer is usually isn’t vetted as thoroughly.
To make sure you are making the right decision, you must understand the pros and cons of selling your property to cash house buyers. Ultimately, it will depend on your situation. If you want to sell your house quickly, a cash offer is the better choice. Also, if your house is in need of plenty of repairs and you don’t have the time or budget, then a cash offer is better too.