Why are Sellers in Favor of All Cash Offers from Home Buyers?

Saturday, October 20, 2018, 6:00 AM | Leave Comment

The phrase cash is king is just apt when it comes to buying a home. This is no exaggeration but most home buyers these days save money for paying everything in cash when it comes to buying a home.

If you are planning to invest in a house and want to know how buying in cash can benefit you, then keep reading.

Well, resting on the marketplace’s temperature paying cash while buying a home has its respective perks from the point of view of the seller.

Good Reasons Why Sellers are in Favor of All Cash Offers

Often sellers will accept the purchase offer that is all-cash over the offers that are higher priced with FHA loan or conventional financing. This is owing to the fact that they are aware of the fact that the cash offer may close.

But it is important to ensure while submitting an offer that one sends the proof of funds along with the offer. One has that cash to close while another to offer proof. This will make the offer much stronger. To know more contact ASAP Cash Home Buyers.

Now take a look at some good reasons why sellers are in favor of all cash offers:

  • No Appraisal Contingency

    When it comes to appraisals people have a different opinion. It is never cast in gold. Here is common technique will be to rely on a comparable sale or the comparative technique that includes selecting 3-5 properties as well as comparing its worth to those properties in question adjusting downward or upward for missing features/updates.

    Should the home fail to appraise for the buying price while the buyer obtains a loan which needs a down payment of 20% or less, the lender will stop lending until the home buyer coughs up further money or the seller reduces the price.

    A low appraisal can also be dealt with other options, but a contract cancellation can also be spelled.

  • No Contingency of Loan Funding

    Despite the buyer being thoroughly qualified in purchasing an abode at inception, the loan process can involve a lot of things.

    Apart from home not qualifying with the loan approval conditions which the buyer fails to cater to loans which were available once drying up at the time of escrow.

    Lenders more commonly deny loans as the qualifications of the buyer change with further scrutiny. Either the buyer was not employed fully in that occupation, perhaps the financial conditions were changed before closing like the buyer buying a new vehicle or was unwittingly an identity theft victim.

  • Faster Closing

    The home cash buyer will not require a month or more to close if they do not obtain the loan. After the home inspection, as well as other contingencies, are released or satisfied, the closing can happen within a week only if the buyer desires to sign the lead paint waiver.

    Here a faster closing will put the cash in the pocket of the seller sooner. In the case of a brief escrow period, other things can also go wrong.

How Can Home Buyers Benefit by Paying Cash to Buy a Home?

At a time when REO lenders possess foreclosures in plenty in their portfolios, the lender sometimes will discount the price list of the home with the belief that the property may attract a lot of offers.

The buyers that pay cash while investing in REO or real estate owned homes may win different offer situations. Yet it is not priced alone there are other benefits too that homeowners can enjoy by paying cash to buy a home. These include:/p>

  • No limitations on title transfer because of underlying loan

  • Market fluctuations will not matter

  • Available equity during a financial emergency

  • Sense of security

  • No mortgage payment

Paying in cash will make the purchase offer for sellers more attractive as they can keep all worries at bay that the homeowner will not back out should they disqualify for the home loan.

In fact, by paying cash, a homeowner may enjoy the perks of getting it at a discounted cost particularly if the sale is an urgent one. Besides purchasing a home by paying cash will cut down the transfer period thereby allowing the home buyer in taking occupation sooner.

The process is straightforward. Also, the seller will not have to take care of deep cleaning or repairs if any to prepare the home to sell in case of cash home buyers. Such buyers will take the home just as it is and will not be deterred by foreclosure, damage or other situations which can make the selling process difficult.

The bottom line is, if the seller is not ready or capable of investing money and time required for fixing up the home prior to the sale, to sell the home for cash will be the perfect way to go for sure.

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