Surely the seller receives the full payment from the buyer’s lender either way? I’m confused on why it is sure to get you a much higher chance of getting the house.
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Well for one it means they have the money to purchase immediately (no 30 days etc) closing takes quite a while and during that period the lender can still decide not to back the lendee if anything changes or something isn’t right (it happens way more than you would think) so it can be quite a nuisance. Someone will be able to offer other reasons this is just one easy one I know
A cash buyer isn’t dependent on finalizing their mortgage loan… there’s always a risk a buyer loses their job, has some credit issue that prevents them from getting the loan, rate hikes make payment unaffordable, etc. vs. a cash buyer will close for sure. Also, a cash buyer can usually close more quickly than a borrower since the mortgage underwriting turnaround can be 30-45 days.
In addition to what’s already been said, it means that you don’t have to worry about a contingency on the sale of the buyer’s current home.
A cash offer does not require bank underwriter approval.
1) Guaranteed to close.
2) Can close faster.
This is why sellers will accept a lower price cash offer vs one requiring a mortgage.