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?
In: Other
Financing has the possibility to fall through even if the buyer has pre-approval. A number of things could cause the approval to fall through at closing. Let’s say you were selling a house and the buyer bought a new car from when they were pre-approved and closing. Just before closing, their credit is pulled again (which is very common and required in some states) and the purchase of the new car causes their financing to be pulled at the last minute or force an interest rate that affects the monthly payment to a point where the buyer backs out b/c they can’t afford it.
For the seller, you loose the sell and have to start the process of returning back to the market to find another buyer… all while you are having to maintain the property.
Cash, on the other hand, avoids all of this and if you must sell then you want a sure thing vs taking the risk notes above.
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