As the real estate market has changed, cash sales have become more commonplace and cash purchases accounted for nearly one quarter of residential sales last year, according to ATTOM Data Solutions. Therefore, it is crucial that buyers understand who a typical cash buyer is as well as their preferences when searching for homes vs traditional buyers.
Cash buyers tend to be investors looking for properties as investments rather than living there themselves. They could be retired, relocated from another region or simply seeking diversification of investments; regardless of their motivations they usually pay a premium for homes without mortgage requirements.
One key difference between cash buyers and traditional buyers is that cash buyers tend to be more flexible in forgoing certain contingencies such as home inspections or appraisals – something which can speed up the closing process significantly and make a deal more appealing to sellers.
Although selling to cash buyers can have its advantages, it’s wise to be wary when accepting any offer they present. A cash offer could put you at risk in an overly competitive market and could result in overpaying for property. To mitigate this, work with an experienced real estate agent as well as consult a knowledgeable lender prior to making your decision.
As well as considering their financial capacity to purchase your home, it is also wise to evaluate their track record and assess if they are likely to complete the sale. This step becomes especially crucial if selling to one of the numerous “we buy any property” companies who advertise online or through local media; some of these entities may be legit while others could act as middlemen and attempt to take advantage of homeowners.
When selling to a cash buyer, it’s essential to remember they must still meet standard closing requirements like providing proof of funds, submitting written offers and signing the deed in person at closing table. Therefore, it is a smart idea to ensure you have enough funds on hand for these expenses as well as any unexpected ones which might come up throughout the process.
As a way to stand out from the competition, consider offering a higher earnest money deposit or waiving contingencies as part of your offer. This can help establish you as a serious and reliable buyer who may attract the seller’s consideration more easily. Furthermore, fast closing processes are attractive features of real estate transactions so consider offering to close quickly if at all possible.