What is a cash offer in real estate and why consider it?
A cash offer is an all-cash bid, meaning a homebuyer wants to purchase the property without a mortgage loan or other financing. These offers are often more attractive to sellers, as they mean no buyer financing fall-through risk and, usually, a faster closing time. Have you received a cash offer on your home? Are you considering making a cash offer or just want to compete with buyers who do? This guide can help. With a cash offer on the table, the buying and selling process is a little different than it would be with a mortgage involved. For one, the process is generally faster. There’s no mortgage application, documentation, or underwriting, and the buyer typically doesn’t need an appraisal. As a buyer, you’ll still need to sort out the title policy and insurance, provide proof of funds, and sign closing documents, but according to Redfin, you may be able to close on an all-cash offer in as little as two weeks. For context as of September 2019, the average mortgage loan took 43 ...