Cash offers are great for hot markets because they close the sale sooner and save you money on closing costs. You may even be able to get the seller to sell below the asking price as it is easier to sell without the banks involved or worry about How long to close in house With cash downriver Michigan. This is not always the case, but it is something to seriously consider when considering cash offers. Let’s take a look at what a cash offer entails and the cash sale process.
What is a Cash Offer?
A cash offer is exactly what it sounds like an offer on a home that is made entirely in cash. The seller will verify your funds and then you can proceed with the home purchase. You can skip all the extra steps in the home-buying process that involve securing a mortgage. Some things like due diligence are still important to go through to make sure the home you are buying is sound. But you can skip other things like underwriting because you’re not working with a loan officer.
Cash Sale: From Start to Finish
Cash sales can put you ahead of the game in a competitive market. If you are offering a cash price, you can beat out someone who is offering the price but needs a mortgage. If you’re buying a home with cash, you can cut the sales process down to two weeks. This reduction in closing time can incentivize the seller to lower the price of the home in exchange for a faster time to sell.
Cash Buyer Makes offer and Seller Accepts
Unless you’re negotiating a lower price and it’s not an extremely competitive market, you can have your offer accepted within a day. After acceptance, you enter the contract period by signing the purchase contract with the seller. This marks the beginning of the cash house-buying timeline. You will need to prove to the seller that you have the funds needed to buy the house. They can request bank statements through your estate agent. The seller verifies that the cash buyer has the money to buy the home within 24 to 48 hours.
Secured Title and Escrow Services
You’ll need to put your money into an escrow account, including any earnest money you’re saving. The title company will work to clear all liens on the property and prepare insurance and title transfer paperwork. Bonded services represent how the funds will actually be transferred and how the closing documents are prepared.
