Eager buyers, sensing a great deal, are fearful of losing out on their offer, so to make it more attractive to the buyer, they make it a cash-offer. When, in fact, they have no intention , or ability, to close in cash.
Is this illegal? No! Unethical? Maybe. Nonetheless, it is happening.
Here’s what to do to protect yourself if you are selling your home and want to make sure a cash-offers is legitimate.
1. Ask for proof of funds - Although, a buyer may very well have the funds available with no intent to use them to close, it is at least , a deterrent and at best some confirmation of financial capability of the buyer.
2. Ask for larger earnest deposit - if the buyer is planning on a cash close, a larger earnest deposit should not be intimidating.
3. Demand a second deposit after the inspection period of larger more significant amount .
4. Clarify breach and possible financial remedy in counter-offer if buyer does not close in cash I know this is an aggressive stance for sellers to take in the sluggish Phoenix real estate market. However, if you have a home that is attracting offers, you need to protect you best interests.
Do not accept offers purely based upon price. You need to give yourself the highest chances of closing.
If the property does not close, you are more than one month down the road. We all know home prices can drop significantly in one month. Thus costing you more money. More importantly, you are likely losing the other potential buyers.
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