If you have been trying to buy a home in Asheville in 2015-2016, you have probably been in a multiple offer situation at some point. Many homes are selling in a matter of a couple of days and if you do get the opportunity to make an offer, you are competing with many other buyers. If your offer with financing is competing with a cash offer, it's likely the cash offer will win the bid.
The sellers advantage for accepting a cash buyer:
- No appraisal necessary, lenders require an appraisal and the home must appraise or the buyer will need to pay the difference.
- Quicker closings- Since new consumer protection laws took effect in October 2015, it takes at least 15 to 30 days longer to close the loan than it did prior to October 2015, typically 45 to 60 days. Cash buyers can close much more quickly.
- Shorter due diligence periods- buyers with financing will need at least 30 days for due diligence to verify that they can get their loan. Cash buyers can do inspections, title search, etc in a couple of weeks.
- Lots of financing falls through for buyers nowadays. It’s very hard to get a loan, even if the buyer has been pre-qualified. Sellers know this, and will often choose a cash deal, even for less money because of the risk of the loan not going through
If you are going into a multiple offer bidding situation and have to get financing, there are still some ways to make your offer enticing to the sellers, but that is for another post.
Bonnie Gilbert, Broker/Realtor/BIC