Should I Accept a Cash Offer on My Home? The Facts You Should Know
In March of this year, cash offers made up more than 27 percent of home sales. That sounds like a dream come true for most buyers, but what’s the catch?
If you’ve heard about people who sold their homes for cash, you might be wondering how they did it. Here’s more information about a cash offer so you can decide if it’s right for you.
What Is a Cash Offer?
When you think of an all-cash offer, you might envision a cash buyer handing you a pile of money. That’s not how they work. A cash offer is when your potential buyer has enough money to pay for the purchase without any financing.
Sometimes they have enough cash and assured credit to offer to purchase your home without adding a subject to financing clause to the proposal. When you have a house for sale, that’s an exciting offer to receive.
Benefits of a Cash Deal
It’s a benefit to know that the buyer has confidence in their ability to pay for your home, but that’s not the only benefit for the seller. The transaction is quicker when the buyer doesn’t have to wait for financing to be approved. They will set a shorter period before the closing date.
Most buyers making these offers are more competitive and their offer may not have many other subjects attached. Do some research to find more information about these services and other terms of cash offers.
When selling a home, a cash offer brings less risk. When the buyer is confident about the house’s condition, they are less likely to request a home inspection. If they don’t need an appraisal from a lender, the only subject may be a title search or vacant possession if there is a tenant in place.
If you accept another offer, it ties up the sale of your home while the lender does an appraisal. They might not approve financing, and the arrangement could fall through. At that point, you’re back at square one, looking at the other deals.
Downsides of a Cash Offer
There’s a trade-off between a fast closing and the money you might be leaving behind. Most of these deals are lower than offers that require a bank’s approval. It’s up to you to decide if the money they are offering is reasonable when selling a house.
If you are working with an experienced buyer or they have a realtor, a cash offer may be the right choice. When it’s a private offer, they might pressure you into making a snap decision. Be wary when an offer is low and has a short expiration date. It might be a low-ball offer, and it would be better to wait for a better price.
Consider a Cash Offer Today
When you take the time to learn about how a cash offer works, you may decide to accept one. It’s surprising how quickly you can sell your home.
We hope you found some great information about cash sales in this article. If so, be sure to check out other posts for more ideas.