Do you know many sellers prefer cash offers, and it can be beneficial for buyers?
In this dynamic market, the home-buying process can be slow and stressful! Many buyers are competing with others to get their hands on available properties. And truth be told, an all-cash offer is a way to stand out and catalyze the process.
Financing can take a long time for buyers; therefore closing a deal will take time too. Sellers usually want to communicate with buyers who meet the fewest hurdles to close the deal. All-cash offers tend to remove those hindrances, but they may or may not be for you.
What is an All-Cash Offer?
In most real estate sales, buyers depend on the lender to finance their properties. Some people are already pre-approved and available to make an offer, but their capability to close the deal will eventually lie on their lender’s evaluation of their debt payment ability, an estimate of the home’s value, property inspection, and other determinants.
With all-cash offers, lender dependence is out of the picture. In this situation, the buyer has sufficient liquid assets to give the price of the sale. This way deal can be closed as quickly as the buyer is ready to write the check.
If you are looking for a house in a very competitive market, paying cash can give you an upper hand in negotiating further on the deal.
Should I accept cash offers for my house as a Seller?
Sellers could take all-cash property offers over higher-priced deals tied to a conventional or FHA loan financing as a cash offer with proof of funds presents fewer obstacles and close quickly.
I can’t afford my mortgage, how can I get an instant cash offer? Fill the application form on our website with house details, and Property Solutions Group professionals will get back to you. There are no repairs required before selling the house, plus we can offer an all-cash offer with no closing costs.
Expect it to be lower than the financed ones. But cash sales take less time. There is no house inspection generating a big repair bill or stopping the sale altogether. The closing can take place within a week, given that the buyer is ready to sign a lead paint waiver. With PSG, sellers can move out carefree with the selling price in their pocket.
Reasons for Buyers to Choose This Option
If sellers prefer cash deals, it is normal for buyers to want to pay with cash if they can, particularly in a seller’s market. These buyers have an advantage over those who need financing. They can negotiate with the seller at a lower price.
There are more benefits for buyers other than just the negotiating power. There is no mortgage payment to make every month. The equity in the property presents a sense of security if financial crises arise.
Downsides of Paying All Cash
What are the disadvantages if I pay all-cash for my house? Even if you can afford it comfortably, letting go of such an amount for an individual is a big thing. It will reduce your liquid assets, leaving you more vulnerable to emergencies and less available for other home repairs.
If you are looking at this purchase as an investment, other options can give better returns, if you are not looking to rent a part of the house. With low mortgage interest rates, you could make up the interest charge and more with some other investments.
After paying cash, you’re losing out on the tax deduction for home mortgage interest. Though, the 2017 Tax Cuts and Job Acts, which increased the standard deduction, have removed this advantage for several homeowners. If your loan is reasonably large, you may not even need to list your deductions.
Having a clear picture of your assets, financial goals, and dependencies can help you evaluate if you are ready to make cash offers. If you are a homeowner looking to sell quickly, PSG can help you. If everything goes well, we can close the deal within a week and help you in the moving process too. Connect with our team today!
Leave a Reply