Because of many benefits, cash offers are becoming more popular in recent days. Here is a list of reasons why this method of transaction is better for sellers.
Increase confidence level
In the case of cash, either the client has the money or doesn’t. As soon as the seller can verify the cash fund, they can close the deal. According to data from the National Association of Realtors points that, in April 2021, only 5% of contracts were terminated. It is often not the case in cash offers.
No mortgage payment
Having no mortgage has an impact on the living conditions of the buyer. But this aspect also affects the seller. All cash offers are very appealing to them. As these offers tend to close fast and have fewer risks in mortgage contingency fees, sellers prefer this method.
Faster process
Closing a cash transaction takes less time. With mortgage approval and other official works, it takes more than 45 to 60 days to complete the process. On the contrary, a cash offer takes only two weeks.
Simpler closing
Just by ensuring a few documents, a real estate property can be sold by cash offers. This keeps the whole process very short and makes the closing very easy. In addition, the seller can save on closing costs. As the transaction doesn’t require any mortgage payment, the seller can charge a decent amount of closing costs.
No appraisal stress
Before approving a mortgage, an appraisal is necessary. This is because the property owner wants to secure the loan. Because of taking no loans, the buyer doesn’t have to go through the process. Sellers can enjoy a benefit due to the appraisal gap.