Have you been thinking about selling your home for a while now and finally are ready to take the leap? When buyers are looking for a home, there are many options they can choose from to finance the home. In the majority of instances, buyers will be taking out a mortgage on the property to cover the cost of it. Mortgages come in all sizes and styles so well-qualified buyers will have many options to choose from. If the buyer of your home is in a position to pay for your home with cash, there can be some additional advantages to selecting a cash buyer for your home over one who will need to secure a mortgage. Here are three reasons to keep your fingers crossed that your next homebuyer will have cash in the bank to cover their purchase.
- One of the most challenging parts of buying a home can be the inspections, especially if the home is less than perfect. Is your home a fixer upper or does it have any kind of major flaw? Inspections can reveal all kinds of problems and if the buyer is getting a loan on a property, the lender may require that certain repairs be made to ensure the property meets their lending criteria.
- Like inspections, an appraisal is required when a buyer is getting a mortgage. The lender will require the home to be worth at least as much as they are paying for it. If your property is in an area with climbing values and you were fortunate enough to have multiple offers on your home, the contract price may have escalated beyond your home’s market value. If the appraisal doesn’t come in as high as the price the buyers agree to pay for your home, they won’t be able to get a loan for the property unless they have cash to make up the difference.
- If you are hoping to sell your home super-fast, a cash buyer can make that happen in weeks or sometimes even days. Selling a home doesn’t have to stretch out for months. It is the lenders that generally make that happen while homes are in underwriting. Selling a home to a cash buyer can be a quick and easy process.
Understand that the number of cash buyers in the home buying market is smaller than others but if you have a cash buyer interested in your home, you may want to negotiate differently with them since the process will likely be smoother. If your property has flaws, searching for a cash buyer may be the only way to go and can help you ensure your property closes. If you have any additional questions or concerns about selling your home, I will be happy to answer any questions you may have, help you to find your dream home and/or determine the value of your existing property.
Nancy Davidson is your ultimate real estate resource for Mammoth Lakes, CA and The Eastern Sierra. Visit my website for detailed information regarding today’s real estate markets.