Consider Cash Offers When Selling a Home, Don’t Jump Too Fast, Many seller like the cash, it is a safe bet since you don’t have to wait for the buyer to get a loan to buy the property. But is it always the right deal for you?
The attractiveness of the cash.
First thing when receiving an offer is to check how to buyer is financially and how likely they are to close the deal. A cash offer is always worth considering since most of the failures in closing the deal is because the buyer didn’t get the loan.
Deep discount catch.
According to a research done by Goldman Sachs, most of the buyers you receive will come from investor that want to flip your home in order to turn it to a fast profit. The offer the investors make are always at a deep discount. You can except the cash and leave, but the cash could be lower than the home’s market value, which they are almost 20% or more than the value.
How big of a risk is the financed buyer?
Most of the buyers you will receive will have a prequalified loan, but the letter is not created equally. Some of the lender can decide over a few details and a phone conversation, while other can take time to verify the borrowers financial. It is up to the agent and the seller to decide which letter are more credible than the others. Most of the pre-approval buyers have passed the bank’s extensive financial checks, which includes the checks on his credit rating, the earnings and debt to income ratio. After reviewing the checks, the lender must make a credit decision and see if the buyer is good for the money he/she is borrowing.
Choosing the best deal.
The best offer you can get is a cash offer with a full asking price with no contingencies and closing in two weeks. Even though this scenario sounds wonderful, it doesn’t happen very often. the seller must choose between the discounted cash offer or a higher financed offer. There is no right or wrong answer, it depends on two factors: the financed buyer is pre-approved, the contingencies required, how fast the buyer can close the deal and whether there are other things like if the buyer picks up your closing costs. You should know there is more than just the price. The decision should be up to you, you have the final say in the end.
– Get your San Antonio Home Valuation Here
Connect with me on Facebook for updates and information.
[showcaseidx_hotsheet name=”San Antonio – ALL – H”]
