Cash is king. Most people are of the opinion that sellers may give a break when it comes to the price of the home up for sale if the buyer pays in cash. Depending on the marketplace’s temperature, paying in cash has immense benefits considering from the point of view of the seller.
Sellers Love All-Cash Offers- Know Why
Often sellers accept a purchase in all-cash over offers that are higher-priced with FHA loan or conventional financing. It is because they are aware that cash offers are likely to close. To know more check, we buy houses Louisville KY – Covenant Properties. It involves lesser stumbling blocks. While submitting the offer, ensure to send proof of funds along with it to make the proposal stronger. Take a look at the different reasons why sellers love all-cash offers,
- No Appraisal Contingency- An appraisal is like that colloquialism will not be repeated yet all have an opinion. It is never cast in gold. A conventional method here is depending on comparable sales called the comparative method that includes selecting 3-6 properties along with comparing its values with that property in question, making adjustments downward or upward for updates or features that are missing. If the home fails in not appraising for the price of the purchase and the buyer gets a loan which needs about 20% down payment the lender will refuse to lend until and unless the seller gives a discount on the price or the cash is coughed up by the buyer. Though there are other choices to handle low appraisal yet can result in cancellation of the contract.
- No Contingency for Loan Funding- Despite the buyer being fully qualified to buy a home at inception, different types of things may crop up at the time of processing the loan. Along with the home not qualifying to the conditions for approval of the loan which cannot be met by the buyer to the loans which were available once is drying up at the time of the escrow. Lenders more commonly deny loans as the qualifications of the buyer change upon more scrutiny. Either the buyer was not employed fully, or the financial conditions changed before the closing like the buyer buying a car or was a victim unwittingly of identity theft.
- Prompt Closing- The buyer will not require a month and a half to close provided he does not take a loan. Post completion of the home inspection as well as other contingencies closing will complete within a week or so only if the buyer signs the lead paint waiver. Prompt closings will put money in the pocket of the seller soon. There are things which may fail during the short escrow period.
To conclude we can state that buyers will enjoy other benefits over price alone. These include market fluctuations will not matter, accessible equity during a financial emergency, sense of security, no mortgage payment and no restrictions in case of title transfer because of the underlying loan. To know more call an expert right away.
December 15, 2018