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Buying Real Estate - Why Cash Offers Are More Appealing to the Seller

In a financial environment where lots of financial institutions are tightening their purse strings, there has been a rise within the number of cash buyers contemplating investing in real estate. Whether the sale is created directly using cash or via a mortgage, the seller receives exactly the same amount of cash (though not in all cases, which we'll cover).

So why then is a cash offer usually viewed as more attractive than a deal to purchase having a mortgage? The answer ties along with the 3 things most sellers want out of any transaction (aside from a reasonable price); a speedy sale, one that's certain to go through, and the ability to move ahead. This combination is what gives cash buyers top of the hand in securing their selection of property over people who have to seek outside financing.

The rate from the Offer

Cash buyers curently have everything they need to proceed with the transaction; they're just looking for a suitable property along with a willing buyer to make a deal. For everybody else who must borrow in order to enter the property market, it's not quite that simple. Yes, they can make offers, but they're not backed by anything concrete until they've been approved for a loan.

In the case of those seeking outside finance, an offer is more of an intention than the usual direct request to purchase the property as quickly as possible. Cash buyers have this power, and it allows them to provide the seller a tangible offer to mull over quickly.

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The Certainty of Closing

Offers made on the contingency that financing can be found are totally reliant on outside sources. If they're not approved for a financial loan then your sale can't go ahead. Conversely, cash buyers hold the world within their hands, and therefore are completely in charge of their own proprietary destiny. Sellers know this, and know that a deal of cash is much more of a sure thing than an offer to buy via a mortgage.

This certainty is so appealing to some sellers that they're even prepared to accept less than their selling price, or less than any competing offers, to be sure the sale goes ahead. Bringing a finance company in to the mix may cause the offer to break down at any time, cash doesn't have this problem.

The Flexibility to Move On

Having a prompt offer that will only fall apart if either party elects to back out from the deal, comes the flexibleness to maneuver on as quickly as possible. The correct answer is simple really, no seller really wants to go through a long, protracted sale process, and funds buyers are the surest way to avoid this. If the seller desired to make use of the money to travel across the world, or invest in another property coming on the market, as well as had to sell as quickly as possible because they had already put an offer in on another house, they can now do all that. Cash buyers allow sellers to maneuver on with their life, which often means they are a more attractive prospect than one that has to wait for financing.