Advantages of a Cash Offer On Your House
Whether the buyer of your house has a mortgage, a personal loan, or a cash offer, you still get paid. So why should you care? While mortgages and cash offers may seem to be the same to you, there are actually a lot of advantages to getting a cash offer. Let’s break it down.
A Cash Offer Is Faster: You Can Close in Days
Do you need your money now? Or in three months?
A mortgage should take 30 to 45 days to close. But in certain scenarios, it can take up to two months or more if the person is having trouble finding financing or needs additional documentation. While you usually have the right to cancel a sale if it takes too long, that will just set you back to square one. A cash offer, on the other hand, can close as quickly as the funds are wired. You can get your money within a few days rather than a few months. And that can be important, especially if you’re selling a home because you can’t currently afford it, and you want to get out fast.
A Cash Offer Is Certain: It Won’t Fall ThroughÂ
When you accept our cash offer, you know that you’re getting the funds.
A mortgage-based offer is always contingent on the loan closing. If the loan doesn’t close, you need to find another buyer. That happens; a borrower may have accidentally misrepresented their income, their financial situation may have changed, or their credit might have suddenly tanked. When you accept a cash offer, there are no such issues. You’ll get the cash regardless because the proof of the cash is already there. This is especially important if you have other things to do, such as purchasing another house. And keep in mind that traditional buyers can always decide to not go through with the sale; while they lose their deposit, it’s also a waste of your time and effort.
A Cash Offer Has No Strings Attached: Sell Your House as Is
A cash offer isn’t contingent on repairs — a mortgage usually is.
When a bank guarantees a house, they want to know it’s move-in ready. They don’t want their borrowers walking away from the property because they don’t have the funds for repairs. They especially don’t want to have to foreclose on and sell a house that can’t be sold. But when you sell a home for cash, it doesn’t matter if it’s damaged, ugly, or old. We purchase houses as is because we know we have the expert professionals needed to fix them. A lot of properties have roof issues, foundation issues, or other structural problems that a bank simply isn’t going to lend out for.
A Cash Offer Can Be Larger: Get the Most Value for Your Property
Mortgages contain interest, origination fees, and point payments. Cash is just cash.
When a borrower spends $200,000 purchasing your home, $10,000 of that may be wrapped up in origination fees, interest payments, and other banking and administration fees. That leaves $190,000 for you (and then, of course, there are your real estate professional’s fees, which could be another $20,000 easily). When you sell a home for cash, you get the most value for your property because the buyer isn’t paying banking fees, and you aren’t paying realtor fees. Cut out the middleman, and you get far more for your property, which you can then put toward your debts or buying a new home.
A cash offer is better in pretty much every way. Not only is it faster, but it’s also more flexible. If you want to sell your house fast and reclaim the most value from it, you want a cash offer. And it’s not going to require that you do any repairs or renovations.
We Buy Salt Lake City Houses! If you have a house in or around Salt Lake City that you’re trying to sell, we can make a cash offer now. Contact us today to find out more.