With a busy lifestyle, it is challenging for home sellers to prep for staging or cleaning or completing upgrades or repairs. You are also worried that you will not be able to come across an expert estate agent or is it fine to not use a broker at all. There is also a concern whether the sale will stay for long on the listings. Nevertheless, many home sellers are even anxious about the expenses related to property selling.
Fortunately, home sellers can take an easy route. Accept cash offer, which offers many benefits in comparison to a traditional sale. For example, Covenant Properties buys real estate in Louisville KY in cash and home sellers can enjoy the cost-saving, speed, and low anxiety.
What is an all-cash offer?
It is a sale process, where the buyer offers a lump sum cost without any fiancé backing like mortgage or loan. When the buyer has sufficient funds, they purchase a house outright. From the home seller’s viewpoint, the source of the finance is not an issue because the outcome is the same – the buyer has paid for your home.
Good reasons to accept cash offer on your house
Fast sales process
The buyer has the cash, so there is no need to proceed with the mortgage application process, which increases the chances of financing fall-through. The mortgage underwriting process takes more than 4 weeks and the odds of the deal falling through exists. In a cash transaction, the buyer needs to handle the insurance, title policy, offer funding proof, and close the deal. This takes a couple of weeks. The evidence of the fund automatically shows that the buyer is serious and the closure will be quick.
No need for upgrades or staging
Cash sale means the house is sold is in as-is condition. There is no agreement on upgrades or repairs before the buyer closes the deal. The buyer can buy it as is or leave it.
The difference lies in preventing multiple contingencies, which are risky for the seller and buyer. Therefore, the majority of home sellers and buyers prefer cash sales. It is easy, quick and without any obstacles to jump across. For example, a cash offer means the home buyer does not get concerned about going through the financing gauntlet, which leads to contingent offer failure.
No need for appraisal
Another difference is that there is no need to get an appraisal. The homebuyer does not need to show a mortgage preapproval document. Therefore, the need to determine the value of the home for mortgage lenders’ reassurance gets eliminated.
Reduces overall selling process cost
Closing in cash involves a title, deed, settlement statement, and cashier’s check. Thus, the paperwork and overall closing expense is reduced because there is no mortgage transaction or fee involved.
Which kinds of homes are for the cash-only option?
- Homes experiencing foreclosure
- Homeowners undergo life changes like divorce, marriage, new job, retirement, or death.
- The home needs significant repairs and the owner cannot handle it.
All home sales include money exchange in any form. Nevertheless, cash offer eliminates multiple glitches when compared to the traditional home selling process. This is why all-cash offers are gaining popularity.