What Makes a Cash Offer So Attractive?
Having cash to buy a home, and not having to get approved for a loan is a wonderful thing. However, if a cash buyer thinks that their offer is attractive simply for that reason, well, there's a lot more to it.
One thing that makes a cash offer attractive is the ability to forgo an appraisal contingency or termite inspection. Things like this are required by lenders. Adding these contingencies to a cash offer makes it less attractive.
Cash buyers should realize that just because they have cash, doesn't mean the seller is likely to accept significantly less money for their property. Cash buyers in Northern Virginia are finding that in our current seller's market, full market value with few contingencies is the best way to go to secure a home. Cash is great, as long as you don't low ball the seller or add the same contingencies they'd find in another offer, less the financing approval.
When it comes down to it, a seller still wants the maximum dollar they can get for their home. After all, a well qualified buyer getting a loan is still a good bet. And at the end of the day, it's all cash to the seller at settlement.
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