Here is What to Look For When Dealing With Cash
Cash may seem an easier deal on the surface. When dealing with cash deals, property sellers are always advised to shorten the cash submission.
The general outlook of dealing with cash may seem easy as there is no appraisal just an easy peasy but on most occasions, this is not always the case. Before you start opening a cash deal know what you are looking for to avoid wasting time and frustrations that may come with it. Whenever you sell a property to a cash buyer here are a few things to put a keen eye on;
A non - contingent offer
This usually forfeits privileges of performing things like due diligence on a property that one is willing to purchase. When a buyer makes a 'non - contingent' offer they are leaving out;
- Reviewing of a sellers disclosure
- Confirmation of big clean ownership
- Performance of further inspection
It mostly occurs in competing offers. Many buyers, in order to beat other willing buyers who can afford the same property, tend to give the sellers this kind of offer but unless you as the seller have dealt with this kind of deal before, one can for sure take advantage of you.
One knows that once the seller has accepted their offer they have approximately 72 hours to submit the cash and within this period they can do the initial walkthrough of the property and a few inspections in case one finds something that is not appealing to them or the numbers they were given don't make sense. Remember all this happens before they submit the cash they can cancel the deal or even negotiate for a lower price.
When dealing with cash deals, property sellers are always advised to shorten the cash submission to a duration of 24 hours to avoid late call disappointment.
Unnecessary inspection period
How long should a cash buyer take to do an inspection? This has always been a tough question. A typically buyer takes 18- 19 days to perform their due diligence on a property. So a cash buyer should take a shorter period than this. This question depends on a couple of things such as the necessity of additional inspections like the foundation or even soil reports and also the complexity of the renovation.
With all this, a cash buyer should try to complete their inspection in not more than four days though down investors can work faster than that. If a buyer is asking for more than eight days, you as the property owner should see a big red flag here and if you don't take caution, this kind of offer may be canceled before the official hand over the cash.
Buyer way out of your area
Well, not all buyers who are not from your area are bad people but one certainty is that they are not familiar with the market and the price fluctuation as the local buyer. That's why one should always avoid a buyer out of their area when there are still more options on the table. They always come with second thoughts and that means that they can cancel the deal mid arrow or even ask for re-negotiations which am sure not all property buyers would like to go through.