Buyers – Cash is King. For a seller in the Desert area who has a home listed in this frenzied market, buyers are eager to get their offers accepted and may submit a cash offer. Is there a difference between a cash offer and a buyer who will be financed? The bottom dollar may look the similar, but are they the same?
Cash is King.
If the buyer doesn’t have to get a loan, much of the risk is removed from the deal falling apart. You won’t have to worry about the financing possibly not going through, or restrictions right before closing. A cash buyer is clear to close right after you receive the proof of funds.
You won’t have to worry about the buyer having to sell their place before buying yours. I have seen many deals contingent on selling a home totally fizzle a purchase agreement.
With a cash offer, an appraisal won’t be required by the lender. Even though home prices are increasing, an appraisal may still kill a deal or send you back into negotiations, if it comes in lower than the offer price. It all depends how much the buyer wants the home.
Cash is King, but you do have to make sure the cash is there. You will want a proof of funds submitted either with the offer presented or submitted within a certain amount of days after the offer is presented.
Is Cash King for a Buyer?
For a buyer who’s wanting to submit a cash offer on a home in La Quinta, it may not always mean your offer will be the first to be considered. Sellers will still be looking at the dollar amount and coming in lower, especially in this market, may bump you out of contention.
However, not having to get a loan to purchase generally means a quick closing. This may be extremely attractive for the seller, but not getting a lender required appraisal may not be in your best interest. Even if you go by the assessed value, or “market” values on Trulia or Zillow may not give you a true market value of your purchase that an appraisal would. This could come to be a problem if you actually paid more than the home was worth.
Also, many times cash buyers overlook important inspections just to get their offer accepted in this type of market. Not a good idea and be a HUGE mistake if there are any serious flaws in the home’s structure or safety.
If you offer a straight cash offer, you may forego title insurance. Title insurance protects you from claims against previous homeowners. Not a good thing to go without.
There are other options other than offering a cash offer – call me to help you with those.
Buying or selling in this real estate market can be scary, frustrating and tricky. You want to make sure you have all the details and information to make the best decisions. That’s how I can help – contact me today!! I will guide you through the listing and selling process to make sure you know all the information and details so you can make the best home buying decisions.