Why Is a Cash Offer on a House Better?
The real estate market has always been a buyer’s market, so it’s not surprising that cash offers are making up a significant portion of home sales in many markets. The good news for sellers is that cash offers are a win-win situation for both parties.
Why Is a Cash Offer on a House Better?
One of the best reasons to accept a cash offer on your house is because it will close faster. Typically, mortgage-contingent transactions take 30-45 days to close. By contrast, a cash-only transaction can close in as little as two weeks.
In addition, cash deals are less prone to problems that can derail traditional financing, according to Steeves. For instance, a home sale can fall through if the buyer isn’t fully qualified for the loan, or if financial circumstances change prior to closing.
Another benefit of cash sales is that they are usually “as is” deals, which means no repairs need to be made. This is especially helpful for sellers who don’t want to spend time or money making a home look nicer before listing it for sale, or for buyers who have limited time to make the necessary repairs. Learn more https://www.kdbuyshouses.com/sell-my-house-fast-in-wolcott-ct/
When you sell your house for cash, there are no appraisal costs. That can save you both money and time, says Bonnie Heatzig, a luxury real estate authority in New York City.
Sellers also like the fact that they don’t have to worry about whether or not the buyer will be able to secure the mortgage. Moreover, because cash buyers are more financially qualified than other homebuyers who need a mortgage, they can often get the job done at a lower price than competing offers.
For all of the above reasons, selling your home for cash can be a good way to get out of a tight situation. If you’re facing foreclosure, divorce, or another emergency, a cash deal can allow you to escape your current situation and begin your life afresh.
The biggest difference between a traditional home sale and a cash-only sale is the number of steps involved. For starters, a traditional home sale involves a buyer’s agent, who can help you determine the proper offer amount, submit your paperwork, and negotiate with the seller.
A cash-only sale, however, doesn’t require an agent. Instead, the buyer will arrange to pay for the closing with their own funds.
There are also a few different types of cash-backed offer programs, which can be helpful for homebuyers in markets where it’s “cash is king.” These companies charge a fee to buy homes, but they guarantee to pay the homeowner on closing day.
The downside to cash-backed offer programs is that they can limit your choice of realtor and lender. Plus, they can cost you more in fees and closing costs than a conventional mortgage. It’s best to discuss this with a local real estate agent to find out more about your options.