Your holiday gift arrived early!  A buyer with a good cash offer wants to close soon!

Do your happy dance, review the contract thoroughly with your agent, and start packing.

Are all-cash offers are better?

While all-cash offers might not earn you the best possible price, they do provide peace of mind for the sellers.

Cash Offers:

• Shorter time to closing: Accepting an all-cash offer means you avoid time-consuming steps like waiting for the buyer’s financing to be approved, and get to the closing table faster.

• Less paperwork and bureaucracy: Cutting out the lender also means cutting out much of the paperwork and hassles associated with a traditional mortgage.  However, you still need a “formal closing” to sign the required documentation.

• Less risky: Your Realtor® will, via the signed contract, request official documentation of cash to close.  Some buyers have lots of money but cannot access it.  A verified cash buyer is what you want.

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Cash transactions cross into all sectors of real estate.

All-cash buyers usually fall into one of the following categories:

• Traditional homebuyers: A traditional buyer with lots of funding may opt to make an all-cash offer, saving the hassles associated with financing and eliminating the substantial interest expense on a long-term loan.

• Multi-generational families:  We’re experiencing more 2 and 3-generation purchasing together.  A safe place for seniors and convenient for the next generation to grow and expand.

• Cash-home-buying companies:  You’ve seen TV spots and road signs advertising local or even nationwide home-buying companies. These operations usually have slogans like “we buy any home” or HomeVestors’ “we buy ugly houses.” They buy homes in almost any condition and can close the deal very quickly, but they typically offer a low-end price.

• iBuyers: Similarly, online iBuyers can make cash offers and close deals with lightning speed. Also similarly, the offer you get from one likely won’t be as high as you could get with a traditional sale. Opendoor and Offerpad are two of the biggest players, but neither one operates in every market in the country.

• House flippers: These individuals or small companies buy homes in poor condition, fix them up and sell them for a profit. They are unlikely to purchase homes already in good condition.

Cash is king when buying a property!

The source and amount of cash must be verified before agreeing to any contract.  So once everything looks good you can schedule inspections and other dates.

As the seller you get to decide what type of offer to select.  Jumping on the highest offer doesn’t always end with a closing.  Financing issues, inspection problems, and cold feet impact buyer’s decisions.

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