The Advantage Of Selling Your Home For Cash

No matter what the condition of your home, you should be working to attract a cash buyer.

The Advantage Of Selling Your Home For Cash

Many sellers don’t realize that there is a distinct advantage to selling your home for cash versus selling to a buyer who needs to finance the purchase. What is the difference? The seller still gets a check at closing. Right?

 WRONG!

When buyers are using a bank or mortgage company to finance their purchase, there are a number of procedures that the lender requires.

Firstly, the buyer must jump through hoops to qualify for the loan. Most purchases that fail due to financing fall apart within 5 days of the scheduled closing date. That means that the home has been taken off of the market for 3 to 4 valuable weeks. In this market, that could reduce the home’s value by 1% or more.

The lender also sends an appraiser out to the home in an attempt to place a value on the home. If that appraisal comes in low, then the seller is expected to lower the price to the appraised price. That can cost a seller thousands of dollars.

Also, in our current market, most buyers are asking the seller to pay 3% or more towards their closing costs. That is money that comes straight out of the seller’s pocket.

Did you know that most banks won’t loan on a home with a broken / boarded window? Some lenders have rejected financing because the exterior paint is peeling or cracking. Water in the crawl space? No loan. Dry rot? No loan.

Cash buyers aren’t required steer through this minefield. They don’t have to qualify. There are no appraisals. No inspections. No expensive repairs. There is no fear of the deal falling through due to a sketchy lender.

No matter what the condition of your home, you should be working to attract a cash buyer.