Many home buyers are now offering cash offers to win over sellers. And with more homes for sale on the rise, the competition is only bound to increase! Are you looking to buy a home? Read the article to know about cash offers.
Cash offers in real estate are now becoming extremely popular, with almost 40% of condo sales and single-family homes in Q2 of 2024. A cash offer is often the quickest sale for a house, with a quicker closing process.
What is a cash offer?
A cash offer is a cash bid. This means that a buyer wants to buy a home without any financing help (loans/mortgages). They are attractive, less risky, close quickly and come lesser paperwork.
Usually, if someone has previously sold their home, they tend to put down cash offers. It also helps one buyer stand out from the other buyer.
Who makes a cash offer?
In real estate, a cash offer is usually made the buyer (with liquid assets to pay cash). Direct buyers also look to buy homes with cash. They usually purchase quickly to gain some profit from the property.
Quick note: Traditional home buyers purchase homes for their living space. They might have cash ready to buy a home, especially if they’ve recently sold their previous home and held onto the money.
Whether you’re thinking about buying a home or selling a home, here are some things you should know about cash offers:
Lesser closing costs
While you put down a cash offer, don’t assume that there won’t be any closing costs. There will be, but generally lower because it’s a cash offer.
Quick sale, quick close
A cash offer for a seller is always an attractive way to close the sale. It’s a quick sale, and the closing process is even faster. Why wait for mortgage paperwork when cash offers are quicker?
Quick note:A cash offer is also less risky for a seller.
Simpler closing process
For cash offers, the losing process is much simpler. Signing the settlement statement, deed, title, a cashier’s check and voila! Get your keys! And since there’s no finance worry, paperwork reduces drastically!
Contingencies – don’t worry about them!
With cash offers, there are lesser contingencies. Since a buyer will not require a financing contingency, the need for a sale contingency might not be there.
Quick note: Some home buyers may still require an inspection contingency.
Cash offers increase competition. They put a better chance for the buyer to get the home he’s bidding for. Its less hassle, and easier.
Should you have any questions about cash offers or buying a home, you can always get in touch with the Flyhomes team. You can even check out our Flyhomes Cash Offer page and quickly get in touch!
