Suppose I’m selling my house for $800k in California. I have a buyer with a traditional financing arrangement (30 year loan) and a cash buyer. As the seller, I get my money regardless of whether a bank pays me or an individual cash buyer. Why do people get excited over the cash buyer?
In: Economics
There is something in property called the chain. In general people don’t have the money for a property laying around, the way they buy one house is to sell another one. So if anything goes wrong with the sale of their house like a buyer pulling out then they won’t have the money to buy your house. Often there are a whole set of people each waiting for their house to be sold to buy the other one and these are lined up in what is called a chain, any break in the chain means that all the property deals can’t go through. However if one person is buying the house with cash that immediately stops the chain, because they aren’t dependant upon selling a house so their deal will go through.
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