Homeowners often prefer to go with cash buyers instead of financed buyers, and there’re reasons behind it. Not only can they close the deal faster, but the chances of it falling through are usually less.
These are certainly significant benefits, especially when you’re trying to sell your house fast, either to an individual or a ‘we buy houses’ company. However, there’re some essential things you need to consider to avoid selling the house to an unethical or dishonest cash buyer.
Let’s take a look at them.
Usually, a cash offer appears with much fewer contingencies compared to a traditional offer. However, it doesn’t mean that there’re no contingencies at all. Most cash buyers have the right to inspect and evaluate the property, even though these aren’t necessary in a cash sale.
However, some cash buyers still prefer to do an inspection. Their intention isn’t nickel-and-diming you, but they just want to see what they’re paying for. But if a buyer tries to renegotiate your after an inspection, it should be a red flag because you’re selling the house as-is.
Source of Funds
Once a buyer makes a cash offer, be sure to verify that he/she has the funds. It’s important to understand that it isn’t just a matter of how much the buyer can pay but also where the funds are coming from.
In fact, this is one of the biggest reasons ethical buyers, whether it’s an individual or a ‘we buy houses’ company, don’t pay in cash, even if they’re dealing with a cash sale. At closing, they’ll use either a cashier’s check or direct deposit to transfer the funds.
Now, you may be wondering how much funds a cash buyer should have? The buyer must have enough funds in the bank to cover both the purchase price of your house and the closing costs. As the total cost can easily be hundreds of thousands of dollars, generally, experienced and reputable home buyers enter into a cash sale.
Ability to Take Out a Loan
Legitimate home buyers such as a reputable ‘we buy houses’ company complete cash sales on a regular basis. They do it as their full-time profession and typically have enough money to purchase houses. These companies also have a robust network of professionals and contractors that help them quickly renovate and sell the properties they purchase.
On the contrary, some buyers can try to low-ball you because either they don’t have the money or they cannot take out a loan from the bank. We aren’t saying that this is always a bad deal, but you should also ensure you aren’t getting a low offer just because it’s a cash sale. You can always get a fair price for the house when you choose the right buyer.
Once you list your home mentioning that ‘I want to sell my house quickly,’ cash offers start coming in almost immediately. But as the home is perhaps your biggest asset, be sure to consider these things before accepting an offer.