If you’re a homebuyer who is considering a cash or conventional offer only, there are several benefits that could be worth it for you. These include:
Avoiding Closing Costs
The biggest advantage of a cash or conventional offer only is that you don’t have to pay any interest on your loan. As a result, you can save a lot of money in interest costs over the life of your loan.
You can also avoid paying certain closing costs, such as 2% to 5% of your loan amount in cash, which can mean thousands of dollars saved on your home purchase. These fees, which vary by location and are typically paid by a buyer’s agent or escrow company, can add up quickly.
A cash or conventional offer only also means less risk to the seller, as there’s no financing involved. This is especially important for sellers with homes in poor condition, since a financed deal could cause the sale to fall through if financing issues arise. For more info https://www.readyhousebuyer.com/
More Choices for Sellers
While most homebuyers are looking to secure a mortgage, there are a number of buyers out there who simply prefer to buy a house without financing. This includes military veterans who often have access to CalVet loans with below market interest rates and low or no down payment requirements.
These types of buyers tend to be more competitive than their financed counterparts, which can help you secure the home you want at the price you’re looking for.
Another benefit of buying a house with cash is that you won’t have to pay for an appraisal, which can be an additional costly expense for the homebuyer. In addition, a cash offer will take much less time to close than a mortgage-backed deal.
In a slow real estate market, a cash or conventional offer only can be more attractive to sellers who don’t want to deal with a financed bid. Additionally, these types of buyers can be more flexible and willing to negotiate over a home’s price, which can make the sale go faster and more smoothly for both parties.
Increased seller confidence
Unlike a traditional sale, a cash or conventional offer only does not require an appraisal or inspection of the home. These can be costly and complicated processes that can delay a sale and deter sellers from listing their home.
A cash or conventional offer only can also be more appealing to sellers who are ready to move. This means they can sell their home faster and move on to a new property.
More competitive
A buyer who makes an all-cash or conventional offer only can stand out from the competition, and increase their chances of winning the house. It’s common for a buyer to get a higher bid than other interested parties when they submit an all-cash or conventional offer only, and this may be due to the fact that it is more likely to win over the seller.
However, the best way to know if making an all-cash or conventional offer only is right for you is to do some research and ask a real estate professional. They will be able to give you a clearer idea of what it might mean for your home sale and how to make the most out of it.
