When selling Gaslamp Quarter condos downtown, you may end up in a situation where a buyer offers cash. A cash offer means the buyer will pay the price in full immediately instead of getting a mortgage from a financial institution that will then transfer the funds to you. Agreeing to a cash purchase can speed up the selling process, but it is also associated with some unique drawbacks. Here are a few things to keep in mind when considering selling your condo for cash.
Pro: It’s Much Quicker
Since the buyer does not have to apply for a mortgage and deal with all the red tape of applying for financing, a cash purchase is typically a quick process. When doing a cash sale, you can close in just 10 to 12 days in most cases, which makes it ideal for sellers who are in a hurry to get rid of their condo and focus on a new home instead.
Con: You’ll Likely Receive Lower Offers
Buyers who are offering to pay in cash for a condo tend to provide slightly lower offers. In fact, suggesting a buyer pay in cash is a classic negotiation technique for lowering the overall price of a home. Buyers make lower offers because they are hoping the convenience and speed of a cash purchase will convince the owner to accept a lower bid. You will have to decide if the speed is worth a little less money.
Pro: Inspections Are Less of a Hassle
Most offers are contingent on an appraisal and property inspections because the financial institution backing the offer wants to ensure the buyer is making a safe investment. With a cash offer, you normally do not have so many variables unless they are mentioned in the contract, which makes it much less likely for the buyer to back out due to a bad inspection result.
Con: Verification Is Essential
It might seem ideal to have a buyer offering to pay cash, but some deals fall through at the last minute when the buyer cannot pay what was offered. Get the buyer to provide proof of the funds when he or she makes the offer. This will ensure the buyer can produce such a large sum at once.
Pro: More Reliability
The process of making an offer, accepting an offer, and closing on a home are filled with uncertainties. For example, a lender could withdraw a loan offer if a buyer loses his or her job suddenly. Even if the buyer is preapproved by a bank, something could go wrong. As long as your cash buyer has verification of the funds, you can be confident the sale will most likely go through, which makes it easier to plan ahead when selling your condo.
From condos in Columbia District to lofts in East Village, San Diego homeowners may receive cash offers when trying to sell their properties. A trusted real estate agent from 92101 Urban Living can help you navigate the sales process. Give us a call today at 619-649-0368. ')}