Cash Offers are High in Demand
Cash offers could make a difference in winning the bid or not! When there are multiple offers (sometimes over 10 offers) cash does rule!
This past spring and summer in Denver was a frenzy when a new listing came on the market, with multiple showings all at the same time, and multiple offers received within hours. Some agents were trying to be slick by offering cash, then switching to a financed offer. Obviously, it is most important to see proof of funds upfront before changing status to under contract.
With a cash sale, there are less contingencies, and the inspection may end up being a bit more strenuous, asking for more inspection items to be repaired. Some cash buyers are investors, and have already done their inspection.
Cash offers are desired due to lack of financing issues. There still are lenders that SAY the buyer can buy, but fail to perform and get to the closing table. Have seen issues come up the week before closing where you just have to scratch your head --- why then? Buyers can terminate a contract at loan objection subjectively, which is a few days prior to closing. We saw offers written so far over purchase price, you just about knew the appraisal would never come in "at value". Some offers had verbiage to address some of the difference, and buyer would contribute thousands over appraised value. There were buyers that had cold feet and terminated.
Cash offers can close quickly, and if a home is vacant, it is highly desired by the Seller. A cash offer can close in a few days, where a financed offer usually takes 30-45 days to close.
This year I have seen 25% of my transactions result in cash offers. Whether the buyer actually had the cash saved, borrow from their retirement accounts, from a eventual estate payout or a family member, they came up with CASH.
In order to secure the home of their dreams, some CASH BUYERS will purchase with cash, then put a mortgage on the property after closing and return the money borrowed. It is all about what works for the buyer and their individual financial picture.
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