Selling a house may sound like a highly complicated process, especially if this is your first time. However, cash offers are there at your rescue! Wondering what they are and how they work?
Today we’re going to look at why and how more and more house sellers in Orlando are moving towards cash offers while selling their houses.
What is Cash Offer?
You might be daydreaming of your buyer walking through the door with a suitcase full of crisp fresh cash; no matter how appealing that may be, it’s not what happens in real life.
In cash offers, the buyer has sufficient funds to buy the property in question and thus does not need to secure a mortgage loan. They will transfer the payment electronically or using a check. This does not make a significant difference to you, the seller.
However, the extra contingencies present may pose additional risks to you. And that’s where a cash offer and an offer backed by a mortgage differ.
The city of Orlando boasts several organizations that specialize in making cash offers for acquiring real estate. Companies like SP Homes LLC are highly established within this region. When needed, many citizens benefit from attaining plenty of cash offers with relative ease from them. Make sure you research which company to consider before opting for one.
Who is Likely to Make Cash Offers?
Just about anyone with enough funds available can make a cash offer. However, homebuyers who downsize, real estate investors, and buyers backed by a cash-purchased product are most common among those likely to make a cash offer.
What are the Cons of Opting for a Cash Offer?
Now, let’s look at why you should not go for a cash offer.
Purchase Offers Potentially Low
This is because your buyer might be in a hurry to find an undervalued property and resell it fast for a profit, or they may renovate the property and rent it out. They may remodel it first before selling it as well. You will not have to worry about low prices too much in Orlando because there are several buyers out there competing to offer cash for properties.
Sale Yet Not Guaranteed
You have to be highly cautious of choosing a buyer because some of them might want to sell you owner financing or a lease.
Others may get your property under contract and go on to look for people willing to pay more. When they don’t find someone during that period, they’ll just let the contract expire, wasting your time.
Lack of Competing Bidders
If you don’t publicly list your property, you may have to go on a hunt for cash buyers personally.
However, as we have mentioned before, there are numerous websites in Florida, especially Orlando, that will buy your house without realtors, showings, or backing out!
What’s an Alternative to Cash Offers?
If the cons make you look for an alternative, we have just that for you.
Financed purchases have a closing time of 30 to 60 days. This may be a good option for you if you buy while selling. The buyer needs to secure a loan to buy the property.
In February 2021, the average mortgage rate was the lowest in 20 years, according to the Orlando Regional Realtor Association. The lender requires an inspection contingency to check if the property has any potential issues and an appraisal contingency to determine if the house is worth as much as they are lending the buyer, among other contingencies. Overall, quite a lot of rigorous paperwork is involved in mortgaging.
Why Should You Opt for a Cash Offer?
We hope you weren’t thrown off by the cons or the alternative because here comes the good parts, the ones that might make you begin to believe that cash offers are better.
This will give you confidence because you will verify if your buyer has the funds they claim to have and then close.
Short Closing Time Due to No Waiting on Funding
Even if your house buyer is pre-approved, they will have to get mortgage approval and then get their underwriting done, which, as we have mentioned above, could take up to two months. Lenders have loads of hoop-jumping involved as well.
On the other hand, a cash transaction can be closed within a maximum of two weeks. It is also much more straightforward. You could spend a lot of time and effort planning your next step in life, be it in Orlando or elsewhere, which is saved in a cash offer.
Repairing or House Staging Unnecessary
This can be amazing if you lose your property on foreclosure or are tight on money.
You don’t have to make your Orlando property look nicer either because you won’t receive any extra credit for that. Cash offer buyers usually have their personalized renovation plans, which won’t match yours in most cases.
You can also save money rather than spending it on a property you’re soon going to sell-off.
Higher Chance of Appraisal and Inspection Being Waived
A cash offer may not need an appraisal. So, you can relax if you are tense about what would happen if your house did not appraise high enough.
Cash buyers can skip inspecting because they don’t need to prove to the lender that the house is in good shape. If your home has flaws that you cannot take care of or don’t want to, this can be a great advantage.
Sometimes buyers may ask for an inspection for peace of mind or as a negotiation tool, but they are doubtful to ask you to pay for the repairs.
Selling a house or multiple houses can significantly impact your life. You already know that several important factors can affect your decision, and things get overwhelming at times. If you’ve read so far, you are now acquainted with the basics of cash offers in Orlando and are a step ahead in the right direction. It all comes down to your needs and requirements, and a buyer with a good agent will ensure the whole process is made as seamless as possible for you.