Is a Cash Offer on Your House Better? (Pros & Cons)

July 12, 2022

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When trying to sell your house, should you look for a cash offer or work with traditional buyers? Obviously, there is no “one size fits all” answer when it comes to selling or buying a home. However, home sellers are often surprised to find out the many advantages of working with cash buyers!

Also, there might be times when cash offers are your only choice when selling. To better understand how this works, check out some details about cash versus mortgage buyers. Additionally, you might review the pros and cons of cash offers so you know when they’re the better choice. Then, discuss this information with a real estate attorney or agent if needed before selling your home.

What is a cash offer versus a mortgage buyer?

In simple terms, a mortgage buyer needs to take out a loan to purchase a home. The house then serves as collateral for that loan. In other words, if a homeowner fails to pay their loan, the bank can seize their house. The bank then resells the house and keeps the money they make as payment for the loan.

Because mortgage buyers need a loan, they also need to follow certain requirements set out by their lender. For instance, most mortgage lenders insist that a home’s construction be up to local building codes. Also, they typically insist that the buyer maintain homeowner’s insurance, including flood insurance, in some cases. Above all, that buyer will need a good credit history, steady income, and similar obligations.

cash offer for a home in Sarasota FL

These obligations are often what delays or outright stops a home selling process. For instance, a mortgage lender might not like the home inspection results! Also, they might insist on the buyer getting more insurance before closing the sale. Consequently, working with a mortgage company can be stressful for both the buyer and seller!

On the other hand, a cash buyer pays cash for a home rather than taking out a loan. In turn, they can buy any home they want no matter its condition. Also, they don’t need to meet various requirements set out by a lender. As a result, cash buyers rarely withdraw an offer or need to delay the closing process.

What is better about a cash offer?

Cash offers for a house mean many benefits for both buyers and sellers! Consider some “pros” about cash offers so you know why they might be right for your home:

  • If your home needs repairs or isn’t up to code, a lender might not approve a mortgage for its purchase. On the other hand, cash buyers often specialize in “distressed” or damaged properties.
  • Since cash buyers don’t answer to a mortgage lender, there is little risk of delays in the selling process. As a matter of fact, rarely do cash offers fall through, or does a cash buyer withdraw their offer.
  • Many cash buyers pay for their purchased home within 7 to 14 days of a homeowner accepting their offer! In turn, you can vacate the home quickly without worrying about its maintenance, utilities, and other expenses.
  • A fast closing also allows you to buy another home if desired. You don’t need to worry about selling your current property or having two mortgages when working with a cash buyer.
  • Fast cash also means having funds to use as needed without waiting for a long closing process.

Do cash offers fall through?

Rarely does a cash offer fall through. However, this doesn’t mean that they are always without risk! One consideration is your home’s title. The title refers to who has ownership of that home. Remember that having a mortgage means that you don’t own your home free and clear!

Cash buyers typically perform a title search on your property before buying. This search alerts them to anyone with a lien on your property, meaning mortgage or home equity lenders. A buyer must pay these lienholders before anyone else.

Above all, if there is any question about anyone’s name on that title, your buyer might withdraw their offer. They need to ensure they’re working with the actual owner or owners before buying! Otherwise, rarely does a cash buyer withdraw an offer or not follow through with their purchase.

shaking hands for cash offer in SRQ

Should you accept a cash offer?

Only you can decide if a cash offer is right for your property! However, note that cash buyers are often the better choice versus buyers with mortgage loans:

  • If your home needs expensive repairs and especially if it’s not up to codes, consider a cash buyer. Severe damage often limits your pool of potential buyers and can delay the closing process.
  • Since cash buyers mean a fast closing, consider cash if you need that money fast! For instance, you might need to settle an estate or meet obligations in a divorce.
  • Selling a home quickly also means not having to face another month of its expenses and upkeep. This is a vital consideration for homeowners struggling with utility costs, insurance, and the like.
  • Fast sales also allow you to vacate quickly, as said. This is an excellent choice for anyone who has purchased another home. Also, consider if you need to move aging parents out of their current homes. Cash buyers often mean few if any delays in the process.
  • If your home has been languishing on the real estate market, it might be time to consider a cash offer! For instance, homeowners might struggle to sell small or outdated homes or those in undesirable neighborhoods.
  • Some homeowners might find the selling process downright overwhelming. As an example, families with young children might struggle to show the home to potential buyers at a moment’s notice. On the other hand, working with cash buyers usually means showing your home to them just once!

Sarasota Home Buyers is happy to provide this information to you about cash offers for houses. If you still have questions or want to sell your home for cash, fast, call our Sarasota cash home buyers. We offer fast response times and quick closings. To find out more about our simple buying process, just give us a call!


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