How Are Cash Offers On A House Different Than Bank Financing?
Why you may want to consider a cash offer to sale your house fast.
You’ve probably seen the signs and commercials that say “cash for your house” and maybe you’re curious to what the difference would be between a cash offer and someone that comes in with bank financing. After all your still going to receive a check for the sale of your property.
It’s funny how some people think that they are really going to receive cash at the closing…like your going to slide this big stack of one hundred dollar bills across the table at closing. Sorry but it doesn’t work that way.
Depending on the situation and the condition of the property sometimes the only way you can sell your property fast is with a cash offer from a buyer. In order for a potential buyer to get financing on a house that they are looking to purchase there are fairly strict requirements that the property must meet in order to qualify for bank financing.
“There are a number of different ways that a cash offer on your property will be different that a person getting bank financing.”
Here’s a few points on how a cash offer may be different than bank financing:
This is exactly what I mentioned earlier and the biggest reason a cash offer may be your only option. Depending on the condition of the property, your situation and time frame you may not meet all of the requirements for the bank to approve the loan.
The biggest hurdle to overcome not only for bank financing but also to make sure the new buyer will be able to obtain insurance on the property will be the 4 point inspection of the house. Cash offers are more likely to close because there are no financing contingencies.
Cash offers can close faster
Depending on your situation you may need to sell your house quickly for whatever reason. Waiting on bank financing, inspections and approvals can be a long drawn out process that you may not have the time to wait for.
Cash offers have substantially less fees
Most times accepting a cash offer allows the buyer and seller to waive the home inspections, surveys and all of the other required fees in order to satisfy the lenders requirements. Depending on the offer, most professional home buyers will pay the closing cost in the transaction also. So this is a huge savings when considering a cash offer. .
Buyers are less likely to back out of the deal with a cash offer
Often time potential buyers back out of the deal due to a lenders requirements that they could not meet. It could be a credit score issue or maybe a lack of down payment but it happens quite often.
Normally when you get a cash offer from Gracie with a reputable home buying company like Blonde Girl Homebuyers; they close on the property. They are experienced professionals that want to buy your house.
In most cases a cash offer on a house is typically “As Is”
This means that you do not have to make any repairs or upgrades to the property. Usually a cash buyer will do a walk through and have a good idea of the repairs needed. Once you sign a contract there may be a short inspection period just to bring in contractors to verify what the cash buyer estimated. In most cases the cash buyers are very experienced and know what it will cost.
When To Consider A Cash Offer
•A cash offer would be a great option if you’re house needs updating or repairs.
•If you need to sell quickly for whatever reason a cash offer would be ideal due to the ease and speed.
•If you want to sell your house in the easiest way possible, a cash offer would be the best route.
•If your property will not qualify for financing.
•In times where credit is hard to obtain. Cash offers provide more certainty.
When A Cash Offer Is Not Your Best Option:
•If your house needs no repairs and is updated.
•If you want full market value and you have the time to wait the 6 months it may take to sell your property..
•If you are comfortable with the additional requirements that may be needed for your potential buyer to get bank financing.
•If loans are easy to come by due to lending requirements being lax and your home will be approved by the lender. .
•When your deciding if a cash offer is your best option for your particular situation keep in mind some of the points mentioned above.
•Knowing that cash offers are more likely to close can be enough to sway you in the direction of taking a cash offer even though it may be less than a bank financing offer.
But for some people the additional money they will receive is worth the stress and uncertainty that come with a buyer that needs to be approved for conventional bank financing.
If you are in a situation where you know a cash offer on your home would be the best option for you then look for a company in your area that buys homes for cash.
If you’re in the Jacksonville Florida area contact Gracie from Blonde Girl Home Buyers. We have purchased many houses throughout the Jacksonville area for cash and we buy houses in any situation or condition. There is no need to do repairs or pay agents any commissions or fees. All information is 100% confidential and there is never any obligation to get a hassle free cash offer on your home.
Blonde Girl Homebuyers
3948 3rd St S # 134
Jacksonville Beach FL 32250-5847
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