July 3, 2012 - Written by the Utah Real Estate Professionals
If you have your home listed, you may think there is no difference between a cash offer and a buyer who will be financed. The bottom dollar may look the similar, but is it the same?
Cash is King.
If the buyer doesn’t have to get a loan, much of the risk is removed from the deal falling apart. You won’t have to worry about the financing possibly not going through, or restrictions right before closing. A cash buyer is clear to close right after you receive the proof of funds.
You won’t have to worry about the buyer having to sell their place before buying yours. I have seen many deals contingent on selling a home totally fizzle a purchase agreement. Even when the market is SLOWLY improving, it still may take a bit for the buyer to sell your home. So you sit and wait. With a cash offer, you’re good to go.
With a cash offer, an appraisal won’t be required by the lender. The decline in the real estate market over the last several years have appraisals coming in lower, even when the current market looking up. An appraisal may kill a deal or send you back into negotiations, if it comes in lower than the offer price.
Cash is King, but you do have to know the cash is there. You will want a proof of funds submitted either with the offer presented or submitted within a certain amount of days after the offer is presented.