If you are house hunting or doing some homework prior to putting your own house on the market then you are aware that some homes listed are only willing to accept cash offers. What exactly does this mean? And are there really enough buyers willing to pay cash? The answer to both of those questions is a bit complicated.
It has happened before, you find the house of your dreams. It has just enough bedrooms, just enough bathrooms and a backyard that’s out of a storybook. There’s only one problem, the sellers are only willing to accept cash offers. If you don’t have enough cash on hand, you will have to keep looking. Your dream home will most likely go to someone who can easily pay for the entire home in cash. So, why put this type of restriction on your home if you are trying to sell it quickly? The main reason sellers do this is because they know that their home won’t be eligible for mortgage financing. This could be due to a number of reasons, there isn’t a kitchen, a major room was abandoned mid-renovation, or a condo or townhome could be delinquent on their HOA dues.
What if you’re a seller? Should you be leery of cash-only offers? Not necessarily.
It depends on your position. If you want to get rid of your home quickly or if there are major repairs that need to be done on the home and you aren’t willing to invest, then yes, cash-only offers might be your best bet.
Real estate agents typically charge a 4% to 6% commission on the sale price, so selling without an agent could certainly save you big bucks. Selling your house in cash will free you from commissions and you can close the business quickly.