There are so many terms to keep track of in the real estate world. Closing, escrow, as-is, buy for cash. The list goes on and on.
Knowing what these terms mean is important to making good decisions when it comes to buying or selling real estate. Buy for cash is a common term you might see from home buyers. So what does it mean?
Buy for Cash Meaning
When a buyer puts in a “buy for cash” or all-cash offer on a home, it means they have the cash on hand for the purchase and won’t be dealing with a mortgage company or rely on any financing. These deals can be attractive to sellers because they usually involve a much faster closing and less risk of the sale falling through.
Cash deals are gaining traction in recent years. In fact, nearly 30% of home purchases in 2018 were all-cash.
Buy for Cash vs. Buy with Mortgage
Buying with cash has a lot of benefits. Cash sales are typically much faster than those relying on financing. While the average sales with a lender take about 43 days, buy for money deals are often completed in less than two weeks. There’s no need for an appraisal, mortgage documents or loan underwriting in cash deals, and some buyers will even waive the inspection.
Cash offers are most common in these scenarios:
- The buyer is an investor or investment company
- The buyer sold a home and is using the cash from that sale for the next purchase
- The buyer is a professional home buyer
- The property is in major need of repairs and is sold in as-is condition for a fix-and-flip
Mortgage purchases are much more common because very few buyers have enough money on hand to buy for money. These sales take longer but they have the safety net of buyers being backed by the bank providing the pre-approval for the loan. With cash sales, if the buyer doesn’t actually have the liquidity that they claim to have, you could run into trouble and lose the sale. The risk of that happening is much lower when you go with a buyer that’s relying on financing.
In home sales, every situation is different and it’s prudent to examine your options closely before accepting any offers.
Buy for Money Situations
Buy for money deals can be extremely convenient in some situations, including:
- Pre-foreclosure
- Unwanted rental properties or frustrating tenants that need evicted
- Divorce
- Extensive repairs or renovations are needed
- Vacant proprietor or unwanted inherited properties
In these scenarios and more, selling to a professional home buyer for cash could really benefit you and allow you to quickly move on from a stressful situation.
Sell Your Home to Zech Buys Houses, LLC
Have you found yourself in a situation where a buy for cash deal makes the most sense? Zech Buys Houses will buy your Colorado Springs, Colorado, home fast with no need for repairs, an appraisal or extensive paperwork. Contact us today to get your all-cash offer!