Is cash really king when it comes to buying a home?
Cash offers in real estate have evolved in reputation over the last few years. With the hot real estate market cash has been used as a bargaining chip to signal quicker closings and easier transactions for sellers. Where in the past cash was seen as something only offered for distressed or dire homes.
HomeLight’s Top Agent Insights Report for 2022 reports that cash offers account for nearly one-third of home purchases, which is the highest percentage recorded since 2014. According to the 2021 Realtors® Confidence Index (RCI) survey all-cash purchases have increased by 42% from 2019 to 2021.
Cash offers are simply that. A buyer submits an offer to the table that they can cover in liquid cash- without financing.
Here are the basics:
- Offers aren’t as likely to fall through as they aren’t dependent on loan approval.
- Cash offers can close more quickly due to less contingencies such as no need for appraisal or financing.
- Less complications due to no underwriting.
If you are selling your home in Charleston a cash offer can mean a lot less risk and stress when it comes to the sale of your home. The top reason a home sale falls through is due to buyer financing. With a cash sale all of that risk is gone. The seller will have a proof of funds letter to prove they have the liquid cash available for the purchase and that is that.
Usually a cash buyer has less contingencies attached to the sale. When obtaining financing a buyer will have financing contingencies as well as appraisal contingencies. If your cash buyer still opts to get an inspection during due diligence, the process will typically be a lot less stressful and specific. Also it is less likely they will request many fixes per the inspection as they aren’t obtaining a traditional mortgage.
Closing on a home with a cash deal can happen from 7 days up to even 90 days depending on your preference and timeline. The timeline is flexible when there is no traditional financing involved. Quick closings also save you money as you can move on to your next adventure without waiting.
In some cases cash offers are lower than others, but with the demand of the Charleston area and the still hot selling market cash offers are coming in at a fair market value more often than not. Want to sell your home for cash?