Purchasing Real Estate – What Makes Cash Offers Much More Attractive to the Seller
In a financial environment where many loan suppliers are now tightening their purse strings, there’s been an increase in the number of money buyers seeking to invest in real estate. Whether the purchase is made directly with money or through a mortgage, the seller r gets the same amount of money (although not always the case).
So why is cash more attractive than an offer to buy with a mortgage? The answer is in the three items most sellers want from any transaction (aside from a fair price); a quick sale, and also being able to move on. This blend is the thing that gives cash buyers the upper hand in procuring their pick of property over people who need to find outside funding.
The Speed of this Offer.
Cash buyers already have everything they require to go ahead with the transaction; they’re just trying to find an appropriate property and a willing buyer to make an offer. If you are planning to borrow to be able to join the property market, it is not that easy. Yes, they could make offers, but they’re not endorsed by anything tangible until they’ve been approved for a loan.
For those looking for outside finance, an offer is much more of an intention than a direct request to purchase the property. Cash buyers possess this capability, and it allows them to provide the vendor a tangible deal to mull over almost instantly.
The Certainty of Closing the Deal.
Offers based on the contingency which financing is available are reliant on external sources. If they’re not approved to get a loan, then the purchase cannot proceed. On the contrary, cash buyers are completely in charge of their proprietary fate. Sellers know that an offer of cash is much more of a sure thing than the offer to buy with a mortgage.
This certainty is indeed so appealing to some sellers they’re even eager to take significantly less than their asking price, or significantly less than some competing offers just to be certain the sale will proceed. Bringing in a finance company into the combination can make the deal collapse at any time, cash does not have this issue.
The Flexibility to Proceed.
Having a prompt offer that can fall apart if either party chooses to back out, stems the flexibility to move on as soon as possible. No dealer would like to go through a long, protracted sale procedure, and money buyers are a sure way to avoid this. Cash buyers enable sellers to move on with their life, leaving them a more attractive prospect than a person who must await financing.
If you can buy your next bit of property on a cash basis, you will now realize why this may give you an advantage.