What is a cash offer? Hi, it’s Nick with Sell My San Antonio House.
When somebody says that they’re offering you all cash for your property, what does that really mean? What it means is that we have the funds available to make the purchase of your property without getting approved for or applying for a loan to purchase the property.
A better question is for you as the seller, why is that important? And there are some scenarios where it becomes really important to the seller if they can get an all-cash offer. Number one is speed. Anytime that you need a loan or need approval for a loan, those things take time because that lender requires different things. So if you are in a hurry, there is nothing that is faster than cash.
Also, if you need repairs for the property. When a lender is loaning on a home, they’re going to want to make sure that that property is in pretty good shape. So if you need a lot of repairs, a lot of lenders won’t lend on those properties. So it needs to be someone who can purchase the property with cash.
Also, when we purchase with all cash, we don’t require an appraisal to be done on the property. So when you get an appraisal on the property, it’s usually required by a lender and then if that appraisal doesn’t come in as high as the purchase price of the property, that lender will do one of two things. They’ll either say we’re not going to loan on it or require the buyer to bring in the cash to make up that difference. And most buyers are not in a situation where they can do that.
The final, big win with an all-cash offer is it’s much more likely to go through. You don’t have all the other contingencies, you’re not worried about that person’s lender, and what are they going to require? What are they going to ask for? So if you need speed, all cash is always the best. If you need a guarantee that it’s going to go through, all cash is always going to be best. Or if you have a property that needs a lot of repairs it’s going to be much easier, the majority of the time, to sell it all cash.
So hope this helps answer the question, what is a cash offer and when might it be really advantageous to you as a seller. If we can help you with anything, please give us a call (210) 201-6644 or reach out to us through the website SellMySanAntonioHouse.com.