When you sell a home, there are two types of offers: mortgage and cash. A mortgage is the traditional type of offer in which the buyer needs to secure a mortgage to get the property. But a cash offer is even better: The buyer already has the cash at hand to make the purchase. Here are some of the advantages of securing a cash offer on your home.
1. You’ll Close Your Transaction Faster
A traditional mortgage is closed in 30 to 45 days. This is the amount of time it takes for the mortgage company to complete its processing, which includes paperwork and due diligence. But with a cash buyer, you can close the transaction as quickly as the money can be wired in. If you want to sell your home quickly, the ideal solution is to work with a cash buyer. This is especially true of professional cash buying companies that can manage their own transactions and complete the sale quite fast.
2. You Don’t Need an Inspection
Mortgage companies require an inspection. But there are many reasons you might not want one. For one, you could be selling an as-is property and not want to do any repairs or renovations yourself. A mortgage company is likely to require that you fix any issues with the home because they don’t want to offer a mortgage on a home that isn’t currently up to their standards, and they can’t control whether the buyer actually makes the repairs themselves. But a cash buyer can choose to forego the inspection. If they want an inspection, they can still choose to buy the property as is.
3. You Can Forego the Appraisal
Most mortgage companies will only lend out money in a certain range. For instance, if a home is appraised for $120,000, the mortgage company may be willing to go up to $125,000, but they aren’t going to go much higher. They don’t want to purchase a home for more than they can sell it. But a cash buyer can pay anything they want for your home, whether it’s $200,000 or $300,000. Cash buyers have complete freedom over the amount they pay, which makes for better and easier negotiations.
4. You Don’t Need to Worry About the Mortgage Falling Through
A mortgage can fall through at the very end. Let’s say the buyer’s credit score has fallen or that the mortgage company simply decides to decline the loan for other reasons. If the buyer’s financing falls through, you’re going to need to go back to step one and find another buyer again. That’s a lot of wasted time. A cash offer isn’t contingent on another party, so you have fewer things to worry about. And if someone with a cash offer pulls out, you’ll at least have your earnest money to fall back on.
5. You May Be Able to Get More
Finally, you might actually be able to get more for your home by accepting a cash offer. Why? Because cash buyers can offer more since they have reduced closing costs. When buyers use a mortgage, they have to pay for things like loan origination fees. Cash buyers just pay the purchase price, giving them a lot more wiggle room in terms of negotiation.
In short, there’s no downside to a cash offer. A cash offer means that you’ll be able to sell your property faster and with greater levels of certainty. It’s not as difficult to get as you might think. Contact us today at We Buy Houses Tulsa, and you’ll be on your way to a cash offer for your home.