Selling a house on cash terms can come with any number of expectations. However, the intent of the offer and the process to get to the closing table is largely consistent. Let’s take a look at common cash offer terms and their definitions to give you a better idea of what a cash offer may look like.
- “As-is” – a cash offer should account for the current condition of the property which implies the good, the bad, and the ugly. Unlike traditional retail real estate transactions, a cash offer is intended to represent acceptance of the current condition of the property. Traditional bank loans have property condition requirements that may disqualify a property if the condition of the property is not in inhabitable condition. Cash offers are not reliant on bank approval and as a result are not susceptible to the stringency of bank required inspections.
- Bank Financing – One of the greater benefits for a seller that accepts a cash offer is the absence of the requirements of traditional bank financing. Traditional real estate transactions can fail when a buyer fails to qualify for bank financing. Cash buyers use funds from private sources that do not require the scrutiny required by banks for home owners to qualify for a loan.
- Speed – A bank financed purchase can take over four weeks to close. While in contrast a cash offer can close in as little as two weeks. The time required to close with a cash offer will be dependent on the title work and any additional time required by the seller.
- Inspections – A cash offer can still come with an inspection window during which the buyer can gain access to the property and review the condition of the home. Inspections with cash offers are often informal and done by the buyers instead of a professional home inspector. Inspections are often done within a few days of the initial contract date. As previously noted in traditional transactions, property condition reports that are produced from home inspectors can result in properties not qualifying for a loan if certain condition requirements are not met. Cash offers do not require inspection reports in order to get to the closing table.
- Appraisals – Traditional real estate transactions require appraisals as a means to establish a third-party valuation, banks require appraisals to protect their interest and ensure the agreed upon offer price is reflective of both the property and current market conditions. Cash offers do not require appraisals and as a result can close faster and are not subject to adjustments in offer price due to an inspector’s opinion.
Cash offers present an opportunity for property owners that are under time constraints or have property that is not in condition to qualify for traditional financing. Cash offers close fast and are more certain to close given the absence of appraisals and the need for the buyer to qualify for financing.
We are locally owned and operated family-based company that has been serving the greater Oklahoma City area for over 15 years. We buy houses in Oklahoma City and the surrounding areas in all conditions and circumstances. We make cash offers for properties and we close them in as little as two weeks. If your family is dealing with a property problem or you just need a quick sale, we would love the opportunity to talk to you about how we can help. Call us today at 405-279-9799 and we can discuss how we can help, if we can’t buy your property, we’ll give you advice on a direction that will help you and your family.