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
Once the original offer is made in cash the only thing that could go wrong that is not in the control of the buyer or the seller is the title search during escrow.
After the title clears all that is left is negotiating the inspection repairs that were recommended.
With an offer that has loan contingencies, or a contingency that the buyer’s existing property close on time to close the current deal, there is a lot more that can go wrong. You are hoping the buyer’s loan funds, and you are also hoping HIS buyer’s loan funds. You are also hoping your buyer has clear title . . .
Cash is so much easier.
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