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Why you may not want to jump TOO fast at a cash offer when selling your house

Written by Posted On Sunday, 29 March 2015 11:23

When You Shouldn't Take A Quick Cash Offer

In the first quarter of 2014, over 40 percent of home sales went to the all-cash buyer crowd, according to research carried out by Realty Trac. For Las Vegas home sellers, this sounds like excellent news. Cash is a safe bet, and you don't have to take your chances with a buyer who needs to jump through hoops to get a mortgage loan to buy your property. But is the cash offer always the right deal for your home sale?

The Appeal of Cash

The first thing you need to address when you receive an offer is how strong the Las Vegas buyer is financially and how likely they are to close. A cash offer is always worth considering, because a failure to obtain financing is the main reason why deals fail to close. In the era of strict lending criteria, some buyers no longer qualify for a mortgage. In other scenarios, lenders quash the financing because the appraisal figure comes in lower than the purchase price. There's no lender with a cash offer, so both of these risks are eliminated.

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The Deep Discount Catch

Most cash buyers come from investors looking to flip your property for a fast profit, according to recent research by Goldman Sachs. Investor offers almost always come at a deep discount.  You can take the all-cash offer, and it's a safe bet that you'll get your cash at the end of the day. But that cash may be considerably lower than your home's market value; by 20 percent or more in some cases. 

Considering Cash Offers When Selling a Home

How Big a Risk is the Financed Buyer?

Many buyers come to the table prequalified for a loan. But prequalification letters are not created equal. Some lenders will take the time to verify the borrower's financial picture; others will take a few details over the phone and make a decision. It's up to the seller and his agent to decide which prequalification letters are credible. Better still, your agent can insist that offers come with a mortgage preapproval. Preapproved buyers have passed the bank's extensive financial checks, including checks on his credit rating, earnings and debt-to-income ratio. Based on these checks, the lender makes an actual credit decision - which means that the borrower is good for the money he is borrowing. It's not cash, but it's the next best thing.

Choosing the Best Deal

The best offer is a cash offer at full asking price with no contingencies and closing in two weeks. Unsurprisingly, these offers don't come along very often. Often, the seller must choose between a discounted cash offer and a higher financed offer.  Which one is better depends on a host of factors: whether the financed buyer is preapproved, the contingencies required, how quickly the buyer can close and whether there are other sweeteners on the table, such as the buyer picking up your closing costs. View the offer holistically, as there's a lot more to it than the price. Either way, don't be pressured by your agent or anyone else into choosing the quick cash sale. You have the final say and should take the time to choose the offer you prefer.

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img src="http://ballenvegas.com/wp-content/uploads/2014/05/Lori-Ballen-Yard-Sign.jpg" srcset="http://ballenvegas.com/wp-content/uploads/2014/05/Lori-Ballen-Yard-Sign.jpg 768w, /Lori Ballen is a licensed agent with a real estate team licensed with Keller Williams Realty Las Vegas. When you choose Lori Ballen Team, you get skilled Real estate agents who specialize in particular niches, and geographic locations. Always in the top 1% of Las Vegas production, Lori prides herself on the continuing education and high level training she and the team members receive.

Lori is known in the real estate industry for her digital marketing skills. She’s a top requested trainer who shows real estate agents how to market their seller’s listings for the most exposure which could lead to higher offers. Lori’s specialty is search engine optimization which might be just how you found this website.

You’ll find Lori Ballen Team real estate agents in Las Vegas, Henderson, North Las Vegas, Boulder City, Pahrump, and even in Reno. She’s recently begun working in other markets across the nation helping sellers get their homes sold for the most amount of money possible in the least amount of time possible and with the least amount of inconvenience. The buyer agents who work with Lori love being out and about previewing the latest inventory. They work with you to find a resale or a new home. That’s right. If you are considering new construction, reach out to us first. You can have your own representation and most of the time the builder pays the buyer agent commission so you have no more expense.

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Use our instant home value calculator to get an estimate of what your house might sell for today.

The listing specialists working with Lori know how to sell a property. They will bring all of the necessary data to help you determine what your house might sell for in the current market. No punches are pulled. It’s all in the numbers and then in the marketing for top exposure. That’s what Lori’s team does best.

When you work with Lori Ballen Team at Keller Williams Realty, you won’t feel lost in the shuffle. It’s a team and everyone cares that you reach your goal. Nobody wins if you don’t win, so you are first.

Give us a chance to show you why Lori Ballen Team is the right choice for your real estate needs.

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Send us an email at [email protected], or call or text 702-604-7739 to schedule an appointment ot have one of our expert real estate agents about selling your house.

 

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