When it comes to buying a home, cash offers are very attractive to sellers. This is because they tend to close faster and there are fewer risks than with contingent mortgage offers. The main reason sellers love cash buyers is the certainty that comes with it. Removing a loan eliminates a lot of risks for the seller, such as not being approved, a low appraisal, or the economy falling apart.
Cash offers also bypass the mortgage application and approval process, which can be time-consuming. Cash offers for homes are more attractive to sellers because there is no risk of falling through with the purchase and the closing time is faster. A cash home buyer already has the funds available and can close quickly if both parties agree. This can be especially beneficial in a competitive housing market, as cash offers can give buyers an upper hand.
Furthermore, cash buyers are less likely to request contingencies, which gives the seller more certainty that the sale will take place and close on time. However, if you don't have enough cash to make an offer, there are other options available to make your offer as competitive as a cash offer. For example, you can get pre-approved for a loan or get an appraisal done before making an offer. Additionally, iBuyers are companies that pay cash for homes and offer an offer in a matter of days or hours.
Whether you end up accepting a cash offer or opting for a funded offer, it's important to wait for the right one to arrive. Cash buyers need to provide the seller with proof of funds, which shows that they are ready and can close quickly. And closing a cash offer only involves a statement of the agreement, the title, the deed and a cashier's check.