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What is a cash offer in real estate and why consider it?

Nov 15, 2022 | Buying, Creative Finance, Guides, Real Estate, Selling

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What is a cash offer on a house?

Considering a cash offer? A cash offer is an all-cash bid, meaning a homebuyer wants to purchase the property without a mortgage loan or other financing. These offers are often more attractive to sellers, as they mean no buyer financing fall-through risk and, usually, a faster closing time.

Have you received a cash offer on your home? Are you considering making a cash offer or just want to compete with buyers who do? This guide can help.

โ†’ If youโ€™re interested in a cash offer on your home, we can help. Weโ€™ll buy your home directly with a competitive offer. See if we are a match for you.

How Eight-Five Property Ventures can help you with an all-cash offer

If youโ€™re selling your home (or even just considering it), a cash offer can sound pretty tantalizing. After all, the closing process is often quicker and thereโ€™s no risk of buyer financing fall-through.

We put that cash sale within reach. Thereโ€™s no need to list, stage, or market your home, and if your home qualifies, you get aย competitive, preliminary offerย in minutes โ€” all with just a simple form and some details about your property.

Cash offer considerations if youโ€™re selling a house

If youโ€™re selling a house, youโ€™ll probably encounter a cash offer or two along the way โ€” especially if youโ€™re in an affluent market or a place thatโ€™s attractive to investors.

Generally, these are the types of buyers who will offer cash:

  • Investors looking to fix and flip properties or buy them and hold them as rentals
  • Retirees tapping their savings to avoid mortgage financing costs
  • Previous homeowners using their sale proceeds to purchase a new property
  • Wealthy buyers who can afford to put down large amounts of cash
  • iBuying companiesย that buy your home directly

Regardless of who submits the cash offer, you should weigh the pros and cons carefully before accepting it. Though there are advantages to going the all-cash route, the move isnโ€™t for everyone.

Here are some pros and cons to keep in mind:

Pros of accepting a cash offer:

  • There is no risk of buyer financing fall-through
  • The closing process is usually faster
  • There typically wonโ€™t be an appraisal
  • You might avoid some contingencies

Cons of accepting a cash offer:

  • It might be lower than other offers
  • The buyer usually isnโ€™t vetted as thoroughly

If you do sell to an all-cash buyer, itโ€™s important to understand the pros and cons and ensure youโ€™re making the best decision for your situation.

Key takeaways

Cash offers can offer serious advantages for both buyers and sellers. But they may not always be the right choice. If youโ€™re selling a house, make sure you consider the pros and cons of a cash offer, as well as who the offer is coming from. You want to make sure youโ€™re doing business with a reputable party that has the funds to follow through on the deal.

If youโ€™re buying a house, think long and hard about putting all your cash into one asset. Consider talking to your accountant or financial advisor, and make sure you understand the full picture before moving forward with an all-cash bid.

Eight-Five Property Ventures

Eight-Five Property Ventures

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Last Updated July 01, 2021

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