Cash offers in real estate are not all that uncommon. Essentially, cash offers refer to a buyer’s proposal to purchase your home without a mortgage facility or other financing option.
Cash offers are attractive because they don’t come with the risk of buyer financing falling through. They also have faster closing timelines.
Why Cash Offers?
First things first: are cash offers legit? Indeed they are.
Cash offers typically arise under the following scenarios:
- A buyer has just sold their house and is using the proceeds to purchase a new home.
- An investor or real estate company is interested in your home.
- A house has a pool of possible buyers, and one buyer offers to buy in cash to get an edge over other interested parties.
- The home is a fixer-upper and attracts the attention of a flip and sell investor.
- Retirees using their savings to acquire a home
- Wealthy buyers with the financial muscle to pay for a home in cash
Things to Know About Selling Your House For Cash
Aside from the home buyer’s criteria, there are other factors to keep in mind.
Here are some key ones.
1. You Can Get an As-Is Buyer
If your home is a bit run down and you do not want to carry out renovations, you will get a cash buyer than one using a mortgage or financing facility.
Flippers and home buying companies especially make up this segment.
2. You Can Evade Contingency Clauses
Contingencies are clauses in contracts that allow one party to back out of a deal. They are pretty commonplace in real estate transactions.
Unfortunately, these often protect buyers from leaving sellers and can be punitive to sellers.
Some of the unfavorable clauses may include:
- Offer valid if buyers home sells within a stipulated number of months
- An offer is only fair if inspections don’t turn up specific problems
- The sale only proceeds pending approval of funds by a bank or other financier
Granted, cash buyers can also back out of a deal, but this happens less often than it does with non-cash buyers.
3. You Might Get Low Balled
All that convenience of a cash sale does not come without a downside, however.
While market forces also come into play, you can always expect to get slightly less from a cash home sale than you would from a different sale process.
Hard money buyers are almost always looking to buy houses at significant discounts. This is more so if the buyer is a flipper or investor looking to maximize their profit.
How We Can Help
If you would prefer to make a cash sale on your home, Cash Buyers Network can help you do just that.
Using our experience in the business, we have been able to help thousands of homeowners in South Florida get a fair, cash price on their homes.
If you are looking for a fast payout without realtor fees, closing costs, and commissions, fill out this form today and let us do what we do best.