Selling real estate? Trying to decide if you want to consider cash offers, but you aren’t sure if a cash offer if right for you? Well, we got you covered. This article answers the question “why would a seller consider a cash offer on their house?”
There are many reasons why a seller might chose to sell their house for cash vs. selling it on the market with a realtor to a traditional buyer. We briefly cover the major reasons below.
You don’t want to list your house on the market
A cash offer might be right for you if you want to sell your house without listing it on the market with a realtor. There are plenty of reasons why you might not want to deal with a market sale. For example, you might not want to deal with the hassles of a realtor, open houses, numerous showings, strangers, keeping your house spotless, etc.
Accepting a cash offer eliminates all of the hassles of a traditional sale. In other words, it is a much simpler sale. In turn, this is intriguing for some sellers who want nothing to do with a market sale.
You just want cash
This one is pretty self-explanatory. If you are hard pressed for cash a cash sale is a good choice. Cash offers allow you to close in days or weeks vs. months.
You want to or need to sell as-is
Cash buyers will typically make all cash, as-is offers. If you don’t want to make repairs, or if you can’t afford to make repairs, a cash sale would be your best bet.
Since most buyers on the traditional market use mortgages for funding they won’t be able to buy your real estate if its in bad condition. Also, most traditional buyers on the market are expecting a perfect house. At the least, they are expecting you as the seller to make repairs after the home inspection.
If you want to, or need to avoid repairs then a cash offer might be your best bet.
A fast closing is needed or preferred
This one is similar to the “you just want cash” reason above. Cash offers eliminate all of the contingencies, the lengthy mortgage approval process, the often-time long appraisal process, etc. Accepting a cash offer means you will be able to close within days or weeks.
You want a higher assurance the deal will close
What happens when you eliminate all the contingencies and demands of finicky buyers of a traditional sale? Your chances of closing the transaction skyrocket.
First, cash sales have no mortgage contingency because there is no mortgage lender. Second, they typically have no appraisal contingency. Lastly, they are also typically as-is, which means the buyer is less likely to walk away due to condition issues (either because of their reasons or the bank’s inability to lend).
There are several reasons why a seller might consider (and accept) a cash offer on their real estate. These include less hassles, a faster closing and a higher likelihood of closing.