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A cash offer on house outranks the mortgage-financed house buyer because there are minimal chances of the deal falling through. A cash home buyer can close faster compared to a financed buyer. These are just some of the attractive advantages in some situations. However, there is more to a property offer than the closing date and finance contingency. Generally, there are things to scrutinize before you accept a cash offer for your property.

Source of the cash

You need to verify that the buyer has the cash before accepting his offer. You should also consider the type of cash he has. The buyer will need to have liquid cash in the bank to buy the property and this may mean hundreds of thousands of dollars. A home buyer who needs to sell a house to raise money is as great a risk as a buyer who is financed. There is a high chance that they will not sell their current property on time to buy your home.

Other contingencies

There is a lot of cash offer on house benefits but before you accept a cash offer, you should understand that it contains no finance contingency. This doesn’t mean that the offer is free from contingency. A lot of buyers reserve the right to inspect and appraise the property before closing and end up withdrawing from the contract if the home inspection reveals major repair issues.

If a home inspection reveals problems, you will have to do repairs or/and renegotiate the selling price. For this reason, you may not proceed with a cash transaction faster than a financed purchase.

The bottom line

Cash offer on house is not always the best option. Some buyers charge a premium because there is no risk of the bank refusing their loan. This may not be the best deal for some sellers.