There are numerous benefits to making a cash offer on property. Not only can it save you hundreds of thousands of dollars in mortgage payments, but it also eliminates the costs associated with lender-related closing fees. In addition, home sellers find cash offers to be more appealing and easier to accept because they eliminate many of the hurdles that can derail a conventional real estate sale.
No Mortgage: No Lender Requirements
When you make a traditional mortgage-involved home purchase, lenders require an appraisal to ensure that the house is worth enough money to support the loan. This is to avoid overpaying for the home and putting financial risk on both the buyer and the seller.
This process can be time-consuming and tedious, especially if you have to go through a mortgage broker or lender, but it is necessary in order to get a good deal on your home. Alternatively, you can use HomeLight’s Simple Sale platform to sell your home fast without needing to make repairs or pay commissions to an agent. Also read https://www.companiesthatbuyhouses.co/
No Appraisal Required: With a traditional mortgage-involved purchase, the buyer must get a property appraised to prove that it is worth at least as much as they are asking to finance it. This reduces the lender’s risk of losing a lot of money if the property goes into foreclosure or if it is not sold for enough to cover the cost of the mortgage.
In some cases, an appraisal can increase the value of a home that’s been updated or remodeled, while in other situations it can decrease the price of a home that doesn’t have as many amenities as nearby sales. This could affect how much a lender will loan you to buy the property, so it’s important to understand the pros and cons of getting an appraisal for your cash purchase before deciding to do it.
Lower Risk: The mortgage approval process can be time-consuming and stressful, particularly if the buyer is struggling with their finances or their credit rating. The approval process may involve an extensive review of the buyer’s financial history and an independent appraisal to determine the home’s actual market value.
The appraisal process can delay a sale and cause a lot of anxiety for both buyers and sellers. In some cases, a poor appraisal could lead to a contract being canceled altogether.
More Competitive: A cash offer is generally less expensive than a mortgage-involved offer, as it excludes the need for a home appraisal and financing. This gives a cash buyer more bargaining power, which can increase your chances of getting a better price for the property. More info https://www.ibuyers7.com/
Fewer Contingencies: As a result of not requiring financing, there are usually fewer contingencies to consider. This can mean a quicker and smoother transaction, especially when using HomeLight’s Simple Sale platform to find a cash buyer who is willing to meet the terms of your offer.
Speed: A cash offer can cut down on the average 49-56 day sale period that it takes to close a traditional mortgage-involved sale. This can be especially helpful if you’re a seller looking to quickly sell your property and move on.