Why do home sellers prefer a “cash” buyer? Wouldn’t they get the same amount of $ as a check from the bank if the buyer has a home loan?
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Cash buyers can close the sale faster and the sellers will get their money faster.
Most people when they buy a house use a standard contract from the Realtor. In this contract there is a provision that says something like “subject to buyer securing a loan for the purchase of the house.” the language can be quite different but the idea is, if the buyer fails to secure the loan, for any reason, they can get out of buying the house.
Now they may lose the escrow money but that’s often WAY less than the price of the house.
So a buyer can hold a house for many weeks (sometimes 6 or more weeks) under contract and fail to secure a loan for it’s purchase. During that time the sellers are unable to move on with their lives.
Also most sellers are moving to a new house and part of that deal is for them to sell their old house. So they close on the sale of their old house and sometimes, the same day, the close on the purchase of their new house. If the buyer doesn’t qualify, both deals may fall apart.
Cash buyers eliminate all that.
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