Cash offers are great sometimes, but should you always pick them?
Are cash offers really always the best when you’re listing your home for sale? In a perfect world, we would all assume a cash offer for your house would always be best. Don’t get me wrong; there are some great things about cash offers.
First, cash doesn’t require any kind of appraisal, so you don’t have to worry about the appraised value falling short of the offer price. Also, cash buyers typically can close a lot faster, so if you’re in a hurry to sell, a cash offer might be for you. Finally, a cash buyer may be willing to waive certain things that a financed buyer is not able to, like a home inspection.
Keep in mind, many cash buyers in our Florida market are investors. Investors, by definition, want a return on their investment. This means an investor may not give you the price you want because they’re planning on flipping your home. They may want to hold it, and rent it. Either way, they’re trying to maximize their profit, not give you a great deal.
Another con to a cash deal may be they want you to move out more quickly than you’re ready to. A financed buyer generally may need 30 to 45 days to move, which may give you time to gather your stuff, pack, and move to your new location. Financed offers give you a little wiggle room with your time, while a cash buyer may be pressuring you to get out faster than you’re ready.
Accepting a cash offer from an investor is similar to when you trade your car. Everybody knows if you go to the dealership and you have a car to trade in, the money that they’re going to offer you is not going to be full market value. They know that you just want the convenience of bringing the car to the dealership, handing them the key, and either getting your new car or walking out with a check if they’re just buying your car outright. You should understand there’s a cost that comes with convenience.
Putting your house on the open market for all buyers to be exposed to is generally the best way to get the highest price for your home. What decision is right for you depends on your circumstances. If you’re considering a cash buyer, I recommend looking for a buyer who isn’t an investor if possible.
If you have any questions about today’s topic or anything else, please call or email me. I’d love to hear from you.