The housing market seems to be booming in every city across America. There are bidding wars and people paying wildly over market value. But along with that, people cannot secure financing, and deals are falling out of escrow.
When it comes to cash offers, deals seem to be holding steady and closing. So, why are cash offers better?
Who Pays Cash for a House?
Most cash buyers tend to fall into two broad categories. They may be individuals who do not need any financing and can afford to purchase a home outright. Or, they may be individuals that cannot secure a mortgage loan due to the condition or price of the house.
Then there is a third type of buyer: companies that buy houses for cash. Those companies tend to purchase homes quickly, for a little less than what you could sell the home for in the traditional real estate market. They often have people in-house that know how to fix any problems a home may have.
Benefits of Cash Offers
Selling your home for cash can save you time and money. It can also benefit you in many other ways!
On average, using financing to buy a home can take 45-60 days. Not only do buyers need to be approved, but the underwriting process takes time. Cash purchases take a fraction of that, usually closing within two weeks. In some cases, they may only take 5-7 days to close.
Most cash buyers are willing to purchase a home “as-is.” That means they may not require a home inspection, appraisal, or other contingencies that can hold up the sale of a house.
Many cash buyers may still want to utilize the services of a title and escrow company to ensure that the paperwork is complete and correct. Even so, without having to secure financing through a lender, there is a lot less paperwork to review and sign to complete the deal.
Confidence in Closing the Deal
With cash deals, you can feel confident that the deal will close. In these deals, the buyer either has the money or doesn’t. If you have verified the funds, then the deal will very likely close.
No Worrying About an Appraisal
When using a lender to purchase a home, the property has to be appraised. That is what secures the loan. In markets where homes are selling for a higher value than what they were sold for just a few weeks prior, it can create an appraisal gap.
A buyer must be willing to pay more than what can be approved through a lender. With a cash offer, there is no appraisal required. The home’s value is whatever the buyer is willing to pay the homeowner.
Selling Your Home for Cash
Are you interested in selling your home for cash? At Tropic Coast Homes we have experience buying homes for cash and can help answer your questions. Get a free, no-obligation purchase offer now!
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