BUYERS

WHY MAKE A CASH OFFER ON A HOME?

When buying with cash you have an advantage as you’re paying the seller cash. This can increase your chances of getting your offer accepted over financed offers. Also, when buying with cash, you don’t need to worry about interest on the cost of the home unless you’re using a line of equity for the cash offer. 

When you’re not waiting on a bank, it’s a smoother, quicker transaction. That’s why cash offers are attractive to sellers. The only bank info you should need to provide is a proof of funds available to cover the cash offer. Your bank should be able to provide this easily - it can be a letter from the bank to the seller or even a screenshot of your bank statements or balance.

Making a Cash Offer on a Home

When making a cash offer, the first course of action is making sure you can provide the proof of funds necessary to make the offer you want to make.

NEGOTIATING CASH OFFERS

We can help you negotiate your offer, especially if you are trying to negotiate in a multi-bid situation. If you are offering the same number in a cash offer as conventionally financed offers in a multi-offer sale, you’re likely going to win out since you’re paying with cash. 

BENEFITS OF BUYING HOMES WITH CASH VS FINANCING

For homes getting multiple offers, you get some preference most of the time if you offer cash

You don’t need an appraisal - but you can get one if you want to make an offer based on an appraisal

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.

Have Questions?

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

616-272-3707