When You Shouldn’t Take a Quick Cash Offer

October 07, 2015

When You Shouldn’t Take a Quick Cash Offer

Quick cash offer is one of the best options of selling your property fast. This also means that the buyer does not have to go through several processes in order to obtain a mortgage loan from the bank or mortgage company. During the first quarter of 2010, over 40 percent of home sales went to the all-cash buyer crowd. But if you are a seller, should you always grab the opportunity when a quick cash offer is laid onto your table? Perhaps we should get a closer look.

Often times, quick cash offer means big discount. Buyers who are willing to pay for your property in cash always are usually investors who are looking at your property for a quick profit. Any seller would want to sell or get the property off of their books as quickly as possible which is why some buyers would think that offering cash would create the sense of urgency. Thinking about it, who would want to wait for a couple of weeks or even months before they close the sale? Looking at it closely, since investors would pay for cash – big discounts are also often associated with these types of sales. Offers could be lower than 20 percent or more than the market value of your home. Would you be willing to sacrifice the value of your well-kept home for that price?

Moving on to another type of option are the financed buyers. Many buyers come to the table prequalified for a loan. However, prequalification letters are not created equal. Some lenders will take time to verify the borrower’s financial capability; others will take a few details over the phone and make a decision. It is up to the lender and his/ her agent to decide which prequalification letters are credible. Preapproved buyers have passed the extensive financial checks, including checks on his credit rating, earnings and debt-to-income ratio from banks. Based on these checks, the lender makes an actual credit decision- which means that the borrower is good for the money he is borrowing. It may not be cash, but it is the next best thing.

Choosing the Best Deal

You will be in luck when you get a buyer which offers to pay in cash at full asking price (which means no discount, no contingencies and closing in two weeks). Unsurprisingly, these offers don’t come along very often. So in turn, the seller must choose between a cash offer that is discounted and a higher financed offer. The seller must weigh these options such as the following: whether the financed buyer is preapproved, the contingencies required how quickly the buyer can close and whether there are other sweeteners on the table, such as the buyer picking up your closing costs. View the offer holistically as there are lots more to it than the price tag. Either way, don’t be pressured by your agent or by anyone else to grab or choosing the quick sale. The deciding factors normally are time and money. Will you be willing to wait for a couple more weeks before closing or time is essential to sell your property as early or quickly as possible. You, as the owner, have the final say and should take the time to choose the offer you prefer.

Source: http://theballengroup.realtytimes.com/advicefromagents1/item/37489-when-you-shouldn-t-take-a-quick-cash-offer-when-selling-a-house