You’ve heard the old adage that seller’s love cash offers. Why does a cash offer matter and can you get a better deal purchasing with cash?
Cash offers allow the buyer to waive a lot of the financing contingencies. What does this mean? It means that you don’t have to have a bank approve the purchase of your new home. This is important in a competitive market because you can often close the deal much faster. It also means that the home does not have to undergo an appraisal. The buyer can choose to waive the appraisal when buying with cash whereas this is not usually an option if you choose traditional financing. From a seller’s perspective, these are advantages.
However, if you are trying to buy a home with cash in a competitive market, a seller will often ignore a low ball offer even if it is a cash offer. In a market where there are not multiple offers on a home, you may be able to negotiate a better of a deal, but don’t expect it be much better than if you were using traditional financing.
When it all boils down, cash makes a home purchase easier. It can move along more quickly and have less hiccups from the bank. However, many people don’t have the option of purchasing a home with cash. There are many wonderful lenders out there who want to work for you and help you in every way possible. Don’t hesitate to investigate all of your options and know what is available to you. You never know if you will qualify for a purchase until you speak with a lender. You may also surprise yourself and qualify for more than you thought you would.