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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Buyer flexibility and seller confidence.
One of the biggest challenges when buying/selling a home is chains – linked purchases where successive owners need the money from their sale in order to pay for the place they want (especially if they also need financing to top up their funds to the full amount). If one person drops out for any reason – changes their mind; has a survey done and doesn’t like the findings; can’t arrange mortgage finance; and so on – quite often the whole chain collapses. It can cost time and money, and it’s stressful as heck (it’s apparently one of the most stressful things most people experience, after bereavement). Even when one person merely has tight time constraints, that can cause problems for the whole chain. And chains often need everyone to complete the transaction and move on more or less the same day, and that can cause problems as well. (The fine detail will vary from place to place according to local legislation, but most places are likely to suffer from some variation of the above.)
If you’re a cash buyer, you’re not dependent on any previous sale, and you’re often much less time-constrained as well, and your prospective seller knows that. They can have much more confidence in their sale going through smoothly, and it’s more likely to be on a schedule that suits them. So you’re not only more likely to be accepted as a a purchaser than someone who’s offering the same price but needs to sell their current place and/or arrange financing, but you may well be able to negotiate a better price as well, simply because of that additional peace of mind you bring.
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