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 days to close. Here are some other ways the process can differ from cash offers. Visit this website https://www.fastcashhouseoffer.com/we-buy-houses-south-bend-in/ and know more about a cash offer in real estate and why consider it.
Contingencies & Appraisal: There are usually fewer contingencies with cash sales. Buyers don’t need the financing contingency (that’s for mortgage loans), and there may be no need for a sale contingency either. Some buyers may still want an inspection contingency. Appraisals are typically lender-mandated, so without a lender, a buyer usually won’t have to worry about them. There are some cases in which a buyer may still want an appraisal, though — especially if they’re an investor looking to guarantee returns.The closing process on a cash offer is much more simple. As a buyer, you’ll sign the settlement statement, title, and deed, hand over a cashier’s check (or wire the money), and receive your keys. Without financing in tow, the paperwork is reduced significantly. Your closing costs are also lower since there aren’t any lender fees attached.
Title & escrow: As a buyer, you’ll still need a title and escrow company to handle the transaction, but you may have more leeway in choosing these parties without a lender involved. Shopping around will help you compare fees. Another major difference is that cash buyers need to prove their financial capability to the seller before moving forward. With a mortgage loan, buyers usually come to the table pre-approved, meaning the lender has vetted them and determined they have the financial means to handle the projected mortgage payment. On a cash sale, this safety net doesn’t exist. Instead, the buyer will usually need to provide a proof of funds letter from their bank showing they have the funds available to go through with the sale.
How to get an instant home offer: If an instant offer on your home sounds like a good route for you, you should know how the process works. Bear in mind that iBuyers aren’t available in every housing market — the remaining iBuyers with the largest footprints include Offerpad. But even if your hometown is not covered by the major players, chances are a smaller local company is buying houses in your area. Unlike the traditional process of listing your home and waiting for prospective buyers to come to you, getting an instant offer on a home involves requesting one from an iBuyer directly.
Receive and review your instant home offer: With most companies, you will receive your instant home offer in as little as 24 hours after you submit your request (but sometimes it can take longer). If you like the offer, be sure to review it carefully so you understand it fully and what fees you’ll have to pay. A real estate attorney can be a valuable resource here. Important note: It’s possible that a particular company doesn’t operate in your area, or that your home doesn’t meet certain parameters the company has set. In these cases, you will not receive an offer. In addition, be aware that iBuyers don’t negotiate or accept counter-offers. If you’re unsatisfied with their price, “you can always request an instant offer from a different iBuyer, find a private investor or home flipper who may give you a highly discounted price.
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