If you've been thinking about buying a home and have the capability to buy that home in cash, you should consider the benefits of doing so. Cash sales have many advantages for sellers, which means that you have a better chance of getting the home you want if you opt for a cash purchase instead of a mortgage. Here are some things you need to know about cash offers when you're getting ready to buy a home.
Cash Offer Basics
A cash offer is exactly what it sounds like. You will pay for the home entirely in cash to the seller. If you make an offer on a home and you're planning to pay cash, make sure that your real estate agent knows this. That way, your offer can be tagged as a cash offer. Remember that sellers are far more likely to prioritize a cash offer when they are evaluating multiple offers on their property.
Cash Offer Benefits
You might wonder why sellers will prioritize cash offers when they evaluate any offers on their property. There are several reasons why a cash offer is often a better option. For example, when you buy a home with cash, the sale can go to closing much faster than if you're buying with a mortgage. That's because there's no mortgage company requiring additional time for title research and loan closing. You may be able to close in as little as a week if the seller is prepared as well.
In addition, a cash offer is often prioritized by sellers because they don't have to worry about any financial issues derailing their sale. They know that, once the contract is signed, the deal will close because there's no risk of the financing falling through.
Buying in cash has benefits for the buyer, too. You won't have to worry about the debts of a mortgage or the ongoing payments. When you close the home sale in cash, the deed is yours in its entirety. You also won't have to worry about mortgage company restrictions such as dealing with certain repairs, mortgage points, or even property inspections. You'll be in control of your side of the deal entirely.
As you can see, buying a home in cash is a great way to go if you have the capacity to do so. Talk with your real estate agent about the possibility of marketing your offers as cash offers so that you can reap the benefits of this simple process when looking to buy a single-family home.