SELLERS

WHY ACCEPT A CASH OFFER ON A HOME?

If you accept a cash offer on your home you can get a quick closing. You don’t have to worry about the buyer being pre-qualified or qualified for a loan. There are no worries about appraisals and fewer opportunities for financing hiccups. 

It’s more likely you can sell the home as-is, without getting repairs or updates, and without scheduling showings, all things you may need to do to sell the home traditionally. 

If you want ease or comfort of closing quickly, and to get the money in your pocket shortly after the sale, accepting cash offers may be the route to take.

What to Expect When Accepting a Cash Offer

You can liken accepting a cash offer on a home to trading in a car. You won’t get 100% of the value on your home when accepting a cash offer, typically it will be closer to 80% or 85% of the true value of your home.

There are many situations when this tradeoff may be beneficial. For estate sales or estate homes, accepting cash offers can make the home easier to sell. You won’t need to get the home ready for showings, or get an appraisal, or deal with the time-consuming factors that are needed to list and sell a home traditionally.  

For any home in which the sale will be split multiple ways, or when increased time and travel would be needed to prepare and list a home, a cash offer may be attractive to sellers.

NEGOTIATING CASH OFFERS

616 Realty works with sellers looking for a cash offer. When we come out to the home to see it, besides preparing a cash offer for the home, we can also let you know how much the home could be worth and the market value if 616 Realty were to help you market, list, and sell the home. 

Sometimes the difference between a cash offer value and this prospective home value may be enough to consider listing the home traditionally and selling it to a buyer with bank financing. Sometimes, cash simply isn’t the best way to go.

cASH OFFER CONSIDERATIONS

INTEREST RATES

If it’s a cash offer there is no interest on the money, unless the cash offer is funded by a line of equity. You’re not dealing with bank financing and loans for the most part with a cash offer. 

MORTGAGE LOANS

No mortgage loans are involved when making or accepting a cash offer. Instead of pre-approval, you’ll just have proof of funds required. A bank can provide this letter or even a screenshot of your account funds. 

HOME APPRAISALS

Needing no appraisal is a big benefit to the seller. Cash offers are generally negotiated without an appraisal.

CLOSING COSTS

There are much lower closing costs for the buyer with a cash offer, but the closing costs for the seller are about the same as they would be otherwise. This is because there is no insurance needed on a loan. This can save buyers from around $800 up to $1500. Origination fees are not needed as well to close on a cash offer. Closing costs for cash buyers can be as low as 3% of the purchase price.

BENEFITS OF SELLING FOR CASH VS FINANCING

The ease of closing on the home with a cash buyer can be attractive to sellers

It’s easier to sell the home without appraisals and listings when you’re accepting cash offers

QUESTIONS TO ASK YOURSELF AS A SELLER CONSIDERING A CASH OFFER:

Are you comfortable taking cash over a conventional offer, knowing it may be appraised higher than the cash offers you’re getting?

Do you have a hard closing date requirement?

Have you had an inspection yet, and if so, are you concerned about repairs or updates needed before selling conventionally?

See what a cash buyer will pay for your home.

Cash Offer

Have Questions?

Call us for a free, no-obligation evaluation of your home.

616-272-3707