A cash offer is a cash offer, which means that a homebuyer wants to buy the property without a mortgage loan or other type of financing. These offers tend to be more attractive to sellers, since they allow the buyer not to finance the risk of falling and generally shorten the closing time. For sellers, cash offers typically involve a faster closing process and a much lower risk of an offer failing due to funding problems. In general, a seller is much more likely to accept a cash offer than a financed offer for your home.
This is because when selling a home, cash offers represent a lower risk for the seller. Compared to offers that rely on buyer funding, cash offers involve much less bureaucracy. An experienced real estate agent will work hard to figure out what matters to the seller and will guide them to a solid offering strategy. If your home is in good condition, Bernhardt recommends putting it up for sale on the open market, where you'll have a much better chance of getting a higher offer.
Since one of the main advantages of a cash offer is avoiding lenders and their many requirements for obtaining a mortgage loan, you may want to skip many of the steps that lenders would require you to take to close. However, the main reason why sellers prefer cash buyers is because the offer is less likely to be delayed or failed when buyers use up all the cash. While the loan still depends on the lender's appraisal, the buyer can choose to forego it, which means that they will have to invest extra money if the appraisal is low. Cash offers that come with lots of conditions can quickly lose their advantage over offers funded with fewer restrictions.
If they are unable to do so, the seller is forced to accept a lower offer, or worse, loses the offer entirely. An agent can also advise you on how quickly you can sell at different prices, so you can compare those scenarios with a cash offer. Some sellers may even be willing to accept a lower offer in exchange for the guarantee of a quick sale. Not only will this give sellers more confidence that you're a serious buyer, but it'll also make it easier for them to qualify for the amount you need to finance.
Lenders often ask for more paperwork, more housing requirements, and more effort from both the buyer and seller.
