Cash offers are very attractive to sellers because they tend to close faster and involve fewer risks than offers conditional on mortgages, which are vulnerable to delays and denials. Until the moment a buyer closes the sale of a home, the entire sale is fraught with uncertainty. With traditional financing, buyers are completely at the mercy of their lender; the slightest change in credit rating can completely undermine a sale in the last second and force the home to re-enter the market. In addition to canceling a sale completely, financing problems can also cause delays (around 21%, according to the National Association of Realtors), some of which can last for weeks or even months.
Sellers where many potential buyers have exceeded their limit will have more confidence in a cash offer. Unlike buyers who need to obtain financing, with a cash offer, you know that the buyer has the funds available and that the transaction can be carried out if that is what both parties want. In most cases, a cash offer is a stronger offer. This is especially true in a seller's market or in a market where there aren't many homes for sale when homebuyers compete with each other for limited inventory.
Buyers who pay in cash have an advantage over buyers who must obtain financing. When a buyer already has sufficient funds to buy their home outright, both of them can avoid several steps (long and costly). What I'm discovering is that, with multiple offers and buyers in cash, some of those with money in their hands are too confident about what the lack of a loan will bring. For a buyer to submit a cash offer, they must have sufficient liquid assets at their disposal to write a check for the full price of the home, eliminating the need for a lender.
A homebuyer who buys a home with cash for the first time, either as a primary residence or as a second home, is more likely to plan to actually live in the house. In general, cash buyers are also less likely to request contingencies, which, once again, gives the seller more certainty that the sale is going through and that it will be closed on time. To reduce your financial risk (if the homebuyer foreclosures in the future), the lender must determine that the home you are asked to finance is worth at least the amount of the loan. With the help of iBuyer, you'll have access to an exclusive group of buyers who are willing to pay cash for your home without having to wait weeks or months to receive an offer.
iBuyer's online home value assessment tool is the easiest and most accurate way to find the real value of your home. When you have to compete with cash buyers, bidding more than them could be your best weapon to win the house. Not only can you avoid inspection contingencies, known to cause buyers to go unsold, but there's also no risk of financing failing, since HomeGo uses its own funds to buy homes. Without having to work with a third party, you and the buyer are free to sign the offer without having to resort to external conditions.
iBuyers are companies that pay cash for homes, offer an offer in a matter of days, if not hours, and allow sellers to close in just two weeks. If you receive a cash offer from a buyer that is more or less common, you may fare better than if you are working with a cash buyer for the first time.
