You have probably seen cheesy pictures like the one above when reading about selling your house to an investor or to a "cash buyer". Even true cash deals really don't involve actual cash physically trading hands. So what does a "cash offer" or a "cash deal" really mean?
The benefit to a seller is that usually there is not a mortgage contingency. That doesn't mean that a mortgage won't be recorded at closing though. Many so called cash deals actually are just like any other offer with an appraisal, a lender, and a recorded mortgage. Often sellers think they are selling to a cash buyer then are disappointed with the process after they find out the hoops that still need to be jumped through to solidify the deal. Many times "cash buyers" will go under contract to buy a house without the means to follow through and close. Investors are left finding and securing financing without the seller knowing. These types of deals are often delayed or cancelled by the buyer if they can't secure financing. Actual cash buyers--who pay with funds in their own account and don't record a mortgage are a smaller portion of so called cash buyers out there. This is the best type of buyer for a seller because there aren't appraisals and other opinions involved to get the deal done. Assuming a title company is used in the transaction, the buyer wires the money to the title company and the seller walks away from the closing table with a check cut from the title company. Sorry, no big bags of money with a $ sign on it!
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AuthorEric Strung and Direct Property Buyer Team Archives
January 2024
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*Members of Direct Property Buyer have real estate licenses held by Spartan Residential.
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