Selling a house isn’t an easy feat. Sometimes, it takes months or even years to close a sale, plus you have to exert a great amount of effort to ensure the house remains attractive to potential buyers.
In this article, we talk about a great alternative for house sellers: accepting cash offers. We’ll discuss what cash offers are, who makes them, and why you should or shouldn’t accept such offers. Read on!
A cash offer is basically when the buyer pays the entire purchase price of the house in cash. No mortgage, no loan- just cold, hard cash.
Now, you might be thinking: “Who has that kind of money just lying around?” Well, mainly investors or those who have recently come into a large sum of money make these types of offers.
There are several reasons why an investor or another buyer might opt for a cash offer as opposed to going through traditional channels. Maybe they’re in a hurry and don’t have time to go through the bank. Maybe their credit isn’t great so they can’t get approved for a loan. Maybe they just prefer to pay in cash.
For instance, even if the Orlando housing market is booming, some sellers may still find it difficult to sell their houses because of the stiff competition. You may quickly sell your Orlando home through a cash offer.
But, should you accept a cash offer right away? Let’s take a look at the pros and cons.
When you accept a cash offer, you can be sure that the deal will go through. There’s no risk of the buyer backing out or being denied financing. This type of stability can be appealing, especially if you’re in a hurry to sell.
Since there’s no loan involved, the entire process will be much quicker and easier. You can close on the sale in as little as two weeks!
When buyers get a loan to buy a house, the bank will send out an inspector to make sure the property is up to their standards. If any repairs are needed, the buyer can ask you to fix them before they finalize the deal. With a cash offer, however, there are no inspections and no repairs needed. The buyer takes the house as-is.
When you go through traditional channels, you’ll have to pay commissions to real estate agents, plus other selling costs like staging, marketing, and more. With a cash offer, you won’t have any of these expenses, so you’ll end up with more money in your pocket.
Since there are no repairs needed and the buyer is taking the house as-is, they might lowball you on their offer.
When dealing with large sums of cash, there’s always the risk of being scammed. Make sure you work with a reputable buyer and have everything in writing to avoid any issues.
Even though there are no real estate agent commissions or other selling costs, the buyer might try to negotiate these costs into the deal. Be sure to read over the contract carefully before signing anything.
At the end of the day, it’s up to you to decide whether or not to accept a cash offer on your house. Weigh the pros and cons and make the best decision for your situation.
If you do decide to accept a cash offer, be sure to work with a reputable buyer and have everything in writing. This will help ensure a smooth transaction and prevent any issues down the road.