Buying Real Estate – Why Cash Offers Are More Attractive to the Seller
Cash buyers are increasing by the day to invest in the real estate market as financial providers continue tightening their purse strings. Whether the purchase is created directly with money or via a mortgage, the seller gets the same sum of cash (although not in all scenarios).
So why is cash more attractive than an offer to buy with a mortgage? The answer is in the three items most sellers want from any transaction (aside from a fair price); a quick sale, and also being able to move on. This blend is the thing that gives cash buyers the upper hand in procuring their pick of property over people who need to find outside funding.
Cash buyers already have everything they need to proceed with the transaction; they are only trying to find an appropriate home and a ready buyer to make an offer. If you are planning to borrow to be able to join the property market, it is not that easy. Yes, they can make offers, but they’re not backed by anything concrete until approval for a loan.
In the case of the seeking outside finance, an offer is more of a goal than a direct request to purchase the property as soon as possible. Cash buyers have this power, and it allows them to give the seller a concrete deal to mull over nearly immediately.
How Sure You are to Close.
Offers made on the contingency which financing will be found are dependent on external funding. If they are not approved for financing, then the sale cannot continue. On the contrary, cash buyers are completely in charge of their proprietary fate. Sellers know that a cash sale is much more of a sure thing than an offer to buy via a mortgage.
This certainty is so attractive to some sellers that they can even accept less than their asking price, or significantly less than any competing supplies, to be sure the sale will go through. Bringing in a finance company into the combination can make the deal collapse at any time, cash does not have this issue.
The Flexibility to Proceed.
Having an offer that can fall apart if either party decides to back out of this agreement, gives rise to flexibility to move on as soon as possible. It’s quite simple, no dealer wants to go through a long, protracted sale process, and money buyers will be the surest way to prevent this. Cash buyers make it possible for sellers to proceed with their own life, which often leaves it a more appealing prospect than a person who must await financing.
If you do have the ability to Purchase your next piece of real estate with cash, you will now realize why it gives you the upper hand.