Are you getting ready to sell your home and are wondering if working with a cash home buyer a good fit? In today’s market, it is highly likely that you will receive at least one cash offer regardless of the listed price. According to the National Association of Realtors, 23 percent of home buyers—including real-estate speculators)—paid cash for their homes in March 2021. Is it true, however, that cash offers are beneficial for home sellers? That is contingent on the offer as well as the seller.
A cash offer may be great for you if you need to sell your home quickly and wouldn’t want to bother with stipulations. If you’d like more time to locate a new home or want to make sure you maximize your profits, a mortgaged buyer may be a better option. So, is working with a cash home buyer a good fit? It all boils down to the specifics of the offer, not just where the buyer’s cash are coming from.
Who Purchases a House Using Cash?
Cash purchasers have always been clustered at either end of the property market. House flippers and speculators on the low end are buying properties that may not qualify for a mortgage owing to condition, price, or both. There are always purchasers who do not require a mortgage at the highest end of the market. This could be due to a large amount of equity from a property sale, a grant or loan from a family member, or simply because they are wealthy.
However, in today’s market, a growing number of regular home purchasers are paying cash. With housing inventory scarce and buyer demand high, some buyers are resorting to paying cash to survive bidding wars. It may go more effectively if you obtain a cash offer from a buyer who is more or less a regular than if you engage with a first-time cash buyer. They’re used to doing tasks like drafting a purchase contract and obtaining title insurance.
Is a Cash Home Buyer a Good Fit for Me?
If you receive a cash offer, you may fantasize about plunging into a pool filled with money, but keep in mind that unless you purchase your property fully, a significant portion of those funds would be used to pay down your mortgage. Cash offers, however, appeal to house sellers for a variety of reasons.
1) Better chances of the deal pushing through
With cash, the purchaser has either the money or doesn’t; if the evidence of funds has been checked, you know you’ll be able to close the deal. Though statistics from the National Association of Realtors indicates that almost all sales go as planned—only 5% of contracts were cancelled as of April 2021—some sellers desire more confidence. According to the same survey, closing delays are far more frequent, affecting 22% of deals in the prior three months.
2) More seamless process
Even preapproved house purchasers must obtain a formal mortgage approval before proceeding to underwriting. This could take anywhere from 45 to 60 days. A monetary transaction can be completed in as quick as two weeks.
3) Fewer stipulations
Cash purchasers are less likely to demand a house inspection, valuation, or other stipulations.
4) Hassle-free closing
Cash buyers should hire a title and escrow firm, as well as a knowledgeable buyer’s agent and potentially a real estate attorney, to guarantee that all documentation is in order. Even yet, without a lender, there’s a lot less to analyze and sign off on in order to seal the sale.
Are You Wondering if Cash Home Buyer a Good Fit?
Are you wondering if a cash home buyer is a good fit for you? If you have any apprehensions, get in touch with the KC Property Guys. They are the foremost cash home buyers in Kansas City. Visit their website at https://www.kcpropertyguys.com/.