If you are in an extreme rush to sell your house and have received a cash offer that was lower than you hoped for, you may want to consider accepting the offer. When a person makes a cash offer, the sale of the home will move much faster than if you receive a traditional offer that requires a mortgage. While the offer might not be as high as you hoped for, you could potentially close on your house in as little as two days.
How long does the closing process normally take?
A normal house closing will take anywhere from four to 10 weeks after a purchase agreement is made, but there are times when it can happen a little faster than this. With a cash offer, the average time is seven to 10 days.
How is this possible?
When a person buys a house with a loan, the person will need to complete all the necessary steps required by the lender. For example, the lender will need to verify the borrower's income and financial state. The lender will also need to complete title work, which will tell if the title of the house is clear. After that, the lender will need a variety of inspections conducted to ensure the house is in good shape. Lenders have so many requirements when issuing loans, and this is why the process can take a while to complete.
When there is a cash offer on a house, there is no lender involved. The buyer simply cuts a check to the seller and the title is transferred. This is the only step needed for a cash deal.
Why sellers accept cash offers if they are low?
People that purchase homes for cash typically do so to make money from these homes, and this is one of the reasons their offers might be lower than sellers would expect or hope for. As a seller of a home, the speed of the transaction is one reason to accept a lower offer, but that is not the only reason. The other main reason is that there will be no contingencies or risks that the sale will not go through. In other words, it is a deal that is certain to go through.
If you are interested in learning more about this or other ways to sell your house quickly, contact a real estate agent in your area today. To learn more, contact a real estate company like TW Homes.