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.
In: 9
Other answers are all right and spot on with reasons. Just want to mention one more reason that cash buyers can be better than someone getting a mortgage. Many lenders require an appraisal of the house before underwriting the loan and will not loan more than the house appraises for. Just as an example, let’s say you want to buy a house listed at $600k, but the appraisal only comes in at $520k. In that case, the lender will only provide a loan for $520k, so the buyer would need to either come up with the rest of the money, or get the seller to drop the price, or they can back out. And this is one of the conditions that allows them to recoup their contingency fee as well. Meanwhile a cash buyer doesn’t need an appraisal and often doesn’t care if it comes in under.
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