The issues a Seller must consider when deciding on a cash offer or financed offer
We buy houses fast with cash as is foreclosure help
An all-cash offer can close QUICKLY Whereas, a financed purchase usually takes at least 30 days to close, and many times longer. And the faster you get your money, the sooner you can be relieved of the hassle of selling your house.
All-cash offers don’t have financing CONTINGENCIES. Will the buyer’s loan go through? Won’t it? How can you be sure? It is safe to say that a high percentage of purchases fall out of escrow due to financing issues. Such as:
Buyer qualified earlier, but now does not (credit score changed; financial ratios changed; buyer bought a new purchase on credit)
Lender changes their loan requirements in the middle of the loan process
Buyer’s rate lock expired and loan rates increased
Lender goes out of business (yes, in the middle of the loan process)
An appraisal comes in LOWER than the amount agreed between buyer & seller. Now the buyer wants the seller to lower his price, but the seller refuses.
An appraisal notes specific items on the home that are “red flags” for the lender’s underwriting department, and they refuse to proceed until certain items are fixed, which the seller refuses to fix at his expense (FHA & VA lenders are notorious for this).
The appraiser is from out of the area, is not familiar with that specific neighborhood, and therefore does a poor appraisal, which is questioned by the lender.
ALL CASH buyers don’t have to worry about these restrictions.
With an all-cash offer, the buyer is very confident that he can close escrow, so you the Seller can request a NON-REFUNDABLE earnest money deposit. However, a financed buyer usually insists on a refundable deposit, because they are at the mercy of their lender.
No appraisal is needed for an all-cash offer. This is a critical piece of the financing saga. Lenders will require an appraisal to determine the house’s value. Appraisals often can kill a deal. How?
All-cash offers eliminate a huge layer of documents, paperwork, red tape, government rules, and headaches for the Buyers And sellers , and save time.
Of course, TERMS and PRICE are not the only things Sellers considers when selling their house in many cases it becomes a matter of ease of access and life circumstances that make a cash sale the smartest way to go.