Photo by Daria Nepriakhina UA on Unsplash
Selling a home isn’t what it used to be. Sometimes, home sellers get blown up with too many offers. In most other cases, it’s crickets. Certain parts of Milwaukee experience intense buyer bidding wars for nicer properties. When buyers are battling each other for the grand prize of a house, do you think the type of offer matters much? It does – and cash is king.
Here are 11 reasons why home sellers prefer cash offers over others that have more strings attached.
Cash transactions are quick. Without the need for mortgage approval, the process moves a lot faster. Sellers can close in a matter of days instead of weeks. Since time is money, most sellers prefer this quicker route – especially if they need to relocate. There’s less waiting and fewer obstacles to overcome.
We spoke to SD House Guys, a cash buyer based in San Diego, who explained, “If you want to win a bid for a property during competitive times, cash is almost required. Especially when going up against national companies who aren’t strapped for cash, their offer terms can be tough to beat. We pay cash anytime we can to win properties in our market.” SD House Guys leverage cash offers when buying homes in California, which is as competitive as it gets.
Cash offers are more reliable. There’s no risk of the buyer’s financing falling through at the last minute. This certainty gives sellers peace of mind. They can plan their next steps without fear of unexpected delays. Knowing the deal won’t fall apart provides major relief to anyone in any type of deal – not just real estate. Long-time homeowners don’t forget the tough times that were had in years past. Getting a reliable offer carries a ton of weight and calms PTSD from deals that went south.
Cash offers often come with fewer contingencies. Traditional offers may include various conditions, like home inspections or appraisals. Cash buyers tend to waive many of these requirements. This makes the transaction smoother and less stressful for the seller. Without the extra hurdles, sellers can move forward confidently. It simplifies the entire selling process.
Cash buyers often have a competitive edge. In a hot market, multiple offers can come in quickly. A cash offer stands out because of its simplicity. There is no bank or mortgage involved, which removes one more cook from an already crowded kitchen.
Sellers are more likely to choose the sure thing over potential complications. The Brotherly Love Real Estate Team, out of Philadelphia, pays cash for homes and offers a 14-day close to edge out the competition. They present sellers with the easiest way out – a 2-week process that lands them with cash in their pockets.
Traditional buyers rely on mortgage approvals. This process is extremely lengthy. Plus, pre-approved buyers can still face issues. For example, losing a job can cause a loan to completely fall out, killing the deal. Would that happen with a cash offer? No!
Cash buyers bypass this entire process, making the deal more straightforward. Sellers don’t have to worry about last-minute financing problems. You can reduce the anxiety of sellers by providing the best solution possible to their problems.
Selling to a cash buyer is convenient. The process involves less paperwork and fewer delays. Sellers don’t have to wait for bank approvals or deal with loan officers. This convenience can be a significant relief, especially during a stressful move. The simplicity of the transaction can make the entire experience more pleasant. Less hassle equals a smoother sale.
Cash buyers often have more negotiation power. They can offer a lower price in exchange for a quick, hassle-free sale. Sounds like a win-win situation, right? Sellers may accept this trade-off to avoid the lengthy traditional selling process. Liquid cash is a strong incentive that is hard for many sellers to deny. It’s often worth accepting a slightly lower offer when you know the deal will close.
Cash buyers offer more flexibility. They can accommodate the seller’s timeline better than traditional buyers. Whether the seller needs to close quickly or delay for personal reasons, cash buyers are usually more adaptable. Flexibility in a real estate transaction is a major advantage for a buyer.
If we didn’t have enough benefits of a cash offer already, let’s throw another one in. Cash offers avoid appraisals. Sellers can dodge a major bullet by working with a buyer who doesn’t need the property to appraise for a certain price.
Traditional sales require an appraisal to come in at a certain value to meet loan requirements. If the appraisal comes in low, it can jeopardize the sale. Cash buyers eliminate this risk and provide more security for the seller!
When you sell a home for cash in an off-market transaction, there’s no realtor involved in the process. As a seller, you save thousands of dollars because of accepting a cash offer. What else do you save? There are no mortgage origination fees, processing fees, or underwriting costs involved either! Everyone saves on both money and time when dealing with cash offers in real estate.
Financed deals can fall apart for various reasons. Loan rejections, issues found during inspections, or buyer’s financial changes are all very common reasons that deals implode. Cash offers mitigate these risks with ease! There is no smoother path to closing. Sellers can have more confidence in the completion of the transaction. As a home seller, choose stability over anything else when selling your home.
