When to use a cash offer program for selling your home
Maybe you want to sell your home quickly as you are shifting to another state?
Or perhaps you have inherited a property that is in need of repairs and upgrades. You may not have the time or willingness to get it ready for sale
Therefore, you may need a quick solution such as a cash offer, which is an all-cash bid. This means a home buyer is willing to purchase your property without a mortgage loan or any other financing option.
This type of offer makes the home selling attractive to sellers as it renders surety that buyers won’t fail to close the deal. There is no risk of the buyer’s finances falling short of purchase as no financing is involved and buyers have provided proof of purchase for your home outright.
How common are cash offers?
If you think cash sales aren’t happening very often, then you need to rethink. According to recent research, cash sales account for almost 22-24% of single-family and condo sales in the entire United States in the past two years. Some states like Florida, Georgia, and North Carolina have witnessed this percentage between 33 to 41%.
Why are cash offers gaining momentum?
Cash sales make the closing time shorter, the purchase process becomes less costly, altogether. The stress and hassle in the home sales procedure are reduced to a bare minimum. Cash offers mean there is no requirement to obtain an appraisal since the home buyer does not have to be approved for a mortgage loan.
Why would a home seller be interested in a cash offer?
A cash offer can occur at any time, in any state, and for any transaction related to real estate. For these reasons, cash offers can be attractive to a seller. But as a home seller, you must understand how it will benefit you before deciding on selling your home for a cash offer.
Professional advice – Always remember the number of cash offers on your property and the amount of these offers will depend upon numerous factors such as market conditions, current price prevailing in the market for a similar property, and local economic conditions.
The Benefits of Accepting a Cash Offer.
1) No appraisal
2) Expedited closing
No mortgage has to be underwritten, this lengthy procedure that takes 30 to 60 days is eliminated, which sometimes causes the home sale to fall through. As a home seller, you would benefit from the reduced risk of the deal falling through and save time involved in the home sale process.
3) Minimizes the risk
As a home seller, choosing the right buyer with the least risk can be an ideal option. To eliminate this risk, sometimes home sellers prefer to select a cash offer over a conventional offer even though cash offers are lower. This offer assures faster closing, obtaining funds quicker, and less risk of the deal falling through due to lending issues.
4) Peace of mind
Less hassle and stress are traded for peace of mind when accepting the cash offer
as there is no need to clean, stage, repair, and/or upgrade your property.
5) Minimal repairs
The conventional home sales procedure can get intense if your property needs major repairs like roof or foundation crack repair, leaky pipes, or an electrical system in need of repairs. Home repairs may cost tens of thousands of dollars, and as a home seller, you might not be interested or can afford such repairs. With a cash offer, you can sell the home ‘as-is’ without sinking time and money into repairs.
6) Optimal resolution for life situations
Are you stuck with a split in the home equity due to divorce?
Perhaps you are relocating for work sooner than expected? As a fast home sale procedure, a cash offer could help you avoid foreclosure, or help you liquidate cash to pay down debt.
7) Limited negotiation and less paperwork
A reputable cash buyer is committed to closing with as little paperwork and time-intensive procedures as possible.
Also, a cash offer mostly avoids the negotiations altogether. Typically you will receive a firm offer. You can accept the offer on the spot, and a home sale is done.
Why would home buyers prefer cash offers?
A potential homebuyer would prefer a cash offer on your property if:
- The buyer has sold their other property and wants to invest the sales proceed in another real estate asset.
- The real estate investor or investment company is interested in your property or the location area of your property.
- Homebuyers are interested in gaining an advantage or want to stand out in the highly competitive real estate market as cash offers win home sellers’ trust.
- A property needs serious repairs or renovations involving capital investment, and the seller is not willing or capable of doing the same.
- A home is an excellent option for an investor interested in fixing and flipping the house.