Did you know that over two-thirds of all real estate activity occurs using a mortgage? Although it is rare for people to purchase homes using cash, it does happen occasionally.
Accordingly, it would make sense to examine the benefits of a cash sale. That way, if such an offer was ever proposed, you would know how to respond.
The Top Benefits of Selling Your Home to a Cash Buyer
What would you do if two people walked into your open house carrying duffel bags full of cash? The correct answer is not to kick all of your other guests out. Generally speaking, you should ask if any of the other guests can make a better offer.
In all seriousness, if you ever had someone make a cash offer on one of your properties, pay attention to them. As long as they have the money to back up the offer, this could be the most significant business proposition anyone has ever made to you.
By taking a cash offer, when you sell your home, you can eliminate the need for third parties entirely. That’s not the only benefit either.
You Do Not Have to Worry About a Third Party
What’s the most tedious part of buying and selling homes? Working with your mortgage broker or lending institution can be mind-numbing. Plus, they can throw a wrench in your plans anytime they want.
Upfront Cash:
When you receive a cash offer on your home, you get all of the money. There is no need to involve a third-party or put the money in escrow. Just sit back, relax, and watch the check clear as it hits your bank account.
Quick Closing Process:
Why does the closing process takes so long when you are closing on a property? The primary reason closing can take weeks or even months is because of the mortgage. Lending institutions must follow regulations before they finalize the details on large transactions. Cash offers bypass this process entirely.
Lessen the Likelihood That Your Deal Falls Through Before Closing
If you have ever worked in real estate, you understand how heartbreaking it can be when the deal falls through. Most of the time, it seems like those are the deals that you put the most work into before the whole thing went up in flames. Cash deals rarely fall through when they are serious.
No Lender to Negate the Sale:
Why do deals typically fall through? It is not because the buyer or seller got cold feet. It is almost always because of a hiccup with the mortgage originator. The other party may not even tell you this. However, you can safely assume that there was a financing issue. By taking a cash offer, you can forget about financing.
Cash Buyers Know What They Are Looking For
Put youself into the shoes of a cash buyer and imagine what they think when they make an offer. You would not make an offer like that unless you were certain this was the property you wanted. Consider that to be a massive advantage when you are selling a home. If someone makes a serious cash offer, they want to buy.
Minimize The Fees You Pay to Brokers
Not only does closing on property take a long time, but it also usually costs several thousand dollars. This money pays regulatory fees, fees to the broker, and other costs associated with getting a mortgage. Cash offers are easily the most efficient way to conduct real estate transactions. Thanks to the elimination of all third parties, you minimize the fees you pay on the deal. If you want to get the most out of your property, this is one way to do it.
Selling a Home for Cash
Should you sell your home to a serious cash buyer? It depends on how quickly you want to get rid of the property. If you would like to get it off of your portfolio right now, then yes. You should absolutely do business with a cash buyer. There are far fewer places during the deal where things can go awry. This makes for an easy set up to execute flawless transactions.