All Cash Is Not Always All That
Sellers are often tempted to accept cash offers. There is a psychological effect behind the words “All Cash” that sellers and their agents are drawn too.
On a practical level selling your home to an “All Cash” buyer also sounds appealing. The benefits include no need for lender appraisal and tedious approval process to slow things down or worse prevent the deal from closing. If your home is in need of major repairs this might be the only way to sell it. Agents in particular like All Cash deals because they close quick and they get their commission fast.
The fact is no one brings in actual cash to purchase your home. What they mean is there is no loan required, the buyer is using funds they have on hand to complete the purchase. Although sometimes that is not true and they are getting private lending funds.
Either way as a seller you do NOT receive more money from an All Cash buyer than you would from a buyer who is obtaining a loan. Actually one of the draw-backs to an All Cash buyer is that they want to pay less for your home than it might actually be worth.
The bottom line is that unless your home is such poor condition that a lender will not make a loan on it All Cash might not be the best way to go. This ia general rule sometime buyers have sold another home that had a lot of equity or came upon funds to buy a new home and do not need a bank loan and they are willing to pay market price.
It’s however worth being aware, that “All Cash” isn’t always “All Good”