Selling your home can be stressful and surprisingly expensive. Unfortunately home sales fall through for lots of different reasons and can happen at any stage in the process—nothing is final until it’s final! The easiest way to ensure a seamless home selling journey is to go with a buyer who offers all cash. This offer can eliminate many of the main issues, including appraisal and inspection contingencies, negotiation failures, and issues with lenders.
Here’s why sellers prefer going with a cash offer buyer.
No appraisal contingency
When getting financing through a bank or lender, buyers will often be told that an appraisal is needed. This step reduces the risk for the financier and helps them understand the value of the home in question. Appraisal contingencies are one of the major reasons that home sales fall through. If it’s found that the home is not worth at least the amount of the loan needed, then lenders can decide that they no longer are willing to finance the loan at all. This puts everyone back at square one and means that a seller will have to put their home back on the market—more showings, more paperwork, more stress. No thanks.
No inspection contingency
In fact, all cash leads to fewer contingencies over all. All cash buyers are more likely to purchase a home “as is,” because an inspection isn’t mandatory in this case. Home inspections, which are usually a must do for financing help, can lead to expensive repairs for sellers or deals falling through all together. This is especially true if a home is old and needs significant upgrades. Going with all cash cuts this step out. What you see is what you get.
All cash offers save time and money, leading to a faster close. A mortgage process and underwriting can take up to two months to be processed—although they are moving faster in the current market. This time in limbo can be stressful for all involved. If a buyer’s financials change at all, the lender or bank can pass, leading the deal to fall through. All cash means you can skip this step and head straight to closing and to get paid for your home.
Trading up for a new home? Selling a current home quickly means the seller can go ahead and start the search for something new, as many lenders won’t allow buyers to take out a mortgage if they’re still sitting on an old home. This can be particularly important if the seller is looking to move out of state. Onto the next one!
At the end of the day, an all cash offer is less risk. Sellers get money in hand faster, there are fewer people and paperwork mountains involved, and everyone spends less time at the negotiation table.
Paying all cash can be anywhere from intimidating to, downright, not possible for some buyers. However, there are options to help. Ribbon, for example, will turn a buyer’s offer into all cash (with no contingencies!), so sellers can have a more sure experience, and buyers can get the home they love without fear of losing it while waiting for financing to come through. A win, win for everyone.
Interested in learning more? Ribbon’s experts are happy to chat through how Ribbon’s Cash Offer works. Book time now.