cash offer

All About The Cash Offer

When purchasing a home, most people tend to set up a financing plan in order to pay the balance of what they owe. They will go to a bank or mortgage lender and apply for a loan that will cover most of the cost of the home. Then they narrow down the amount that is left and do a final wire transfer before receiving those keys. With a cash offer, the process works a little bit differently. Follow along while we help break down what a cash offer on a house is. 


cash offer


The Basics

When you hear the term “cash offer” that means it is an all-in bid on a property without any additional means of financial assistance like a loan. If they have the means to do it, this is a great bargaining tool for a potential buyer. Buying a house with a cash offer has less steps involved than the process of buying a house through the means of financing. 


The Process

The number one difference between financing and a cash offer, is cash is a much faster process. When there is a cash offer, a mortgage application, underwriting, and an appraisal are not needed. Let’s dive a little deeper with these. You can skip the process of applications as you wont need to fill any out to get financing. An appraisal is usually required when there is a lender that is involved. There also is very little underwriting as there is no need to get vetted for financing. All of those take time to gather, so if you are a seller, you benefit from quickly getting to the next steps of selling your property. 


Considering A Cash Offer?

Maybe it’s you who is wanting to put in a cash offer on a house. Should you do it if you have the means to pursue a property this way? Here are some benefits:


  • You can save money over time by not having interest payments
  • Faster closing period
  • Sellers are more likely to choose a cash offer 
  • No need for an appraisal or checking of credit score


You’ll want to consider your payments options as putting in a cash offer can have some negatives as well:


  • It limits liquidity and puts a lot of your money into one asset
  • You won’t be able to take advantage of tax breaks that are mortgage-related
  • The amount of money up front is significant


Home Buyers Express is one of Maryland’s leading Real Estate Firms that can help you with your home buying and selling needs. We pride ourselves in accommodating our clients in the best way we can and make their experience a stress-free one. With over 20 years of expertise, you can sit down with any member of our team and walk away with a great solution. Please head over to our website and see how we’ve helped clients in the past. We are happy to talk with you about any questions you may have. 


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