The most common way to purchase a home is through a mortgage. The process starts with a preapproval letter from your lender, and you’ll put up earnest money to secure the purchase. This is an important step, because it lets the seller know you’re serious about making the offer. Then, it’s time for an appraisal and inspection. If all goes well, you’ll close on the property.
Many sellers prefer cash offers on houses, and they’re a good option for buyers who want to get the deal done fast. Cash buyers also have more bargaining power over financed deals, and they can sometimes get an even better price.
Selling for Cash versus Financing
The main advantage of cash offers over financed ones is that they can close faster, says real estate authority Bonnie Heatzig. Lenders typically need 30-45 days to clear a buyer to close, she notes. That means a cash buyer might be able to close in seven or 14 days, which can help them win over sellers in hot markets. Also read www.acashhomebuyer.com
In addition to a quicker close, there are several other perks of selling your home in cash. First, you’ll avoid all of the red tape associated with financing. You’ll also be able to avoid any contingencies that could delay the sale or prevent you from closing at all.
Secondly, you’ll save on closing costs since there are no lender fees involved. The paperwork is reduced significantly, and you’ll avoid any title and escrow fees that lenders usually charge. You’ll also have a lot more freedom in choosing the title company and escrow company.
Another benefit of offering a cash deal is that it eliminates any risk that the appraisal won’t come in at the right price to support the loan. This can make a cash buyer much more appealing to sellers, especially in hot markets where homes often sell for above estimated market value.
A third advantage of offering cash is that it can eliminate any risk that the buyer will not be able to qualify for a loan. That can happen when a buyer has trouble with their credit score, or they haven’t made enough savings.
If you’re a home seller and you’re not sure whether or not you should sell your house for cash, it’s best to talk with an experienced real estate agent about your options. They’ll be able to explain the advantages of cash offers and recommend an offer strategy that fits your needs.
The key is to focus on what matters most to you. You might want to remain in the house for a few more days until you can move out, or you may need a quicker, more secure close than other offers. In these situations, your agent can help you figure out the best approach to selling in a quick time frame.
Finally, if you’re wondering if cash offers on houses are legit, it’s always a good idea to go with a reputable house buying company like iBuyers. These companies evaluate your home and then make you a cash offer.