What Does Fair Cash Offer Mean?
A cash offer in real estate means that the buyer will pay the entire agreed-upon amount for the house in cash. There will be no mortgages, financings, or lenders involved in the process. It reduces the time to complete the transactions and close the deal. It’s not surprising that sellers prefer all-cash buyers as it is deemed a less complicated process.
The need for a mortgage application, processing, and underwriting is eliminated. Of course, you’ll still have to transfer the title, the insurance and submit other relevant papers. But these steps are compulsory for any sale.
Appraisals are also not mandatory if you want a cash offer. That said, the buyer might want a home appraisal to ensure that they aren’t paying you more than what the house is worth.
Impact of Covid-19 on Real Estate in the USA
The pandemic hasn’t been kind to any of us. However, it appears as if the real estate market in the US, especially Houston, saw one of the best years in recent times. According to statistics, the home sales in 2020 broke the records of 2019 despite the availability being less by 30%.
In fact, buyers bought more expensive homes in 2020 compared to other years. The low mortgage rates made it possible for buyers to finally invest in the home of their dreams. Houston managed this even as the city suffered from an 8.8% unemployment rate due to the pandemic.
With people staying and working from home, ‘home’ is no longer a place to go after work. It has taken center stage, pushing people to buy one of their own when the market is low. It led to an increase in buyers and thus more sales. Also, real estate looked like a better investment when the stock market kept crashing, and the crypto market was even more volatile.
Who Are Potential Buyers for a Fair Cash Offer?
If you want to sell your home in the Covid-19 conditions and want a fair cash offer, the following types of buyers are your best choice. The complications are minimized, and your chances of successfully selling your home are high.
Inventors Looking to Resell or Rent
Investors don’t usually like to bother with mortgage loans and stuff that delay their plans. They pay all-cash, buy the home, get a few repairs done (if necessary), and then sell it for a higher price or put the house in the market for rent. The reselling is known as fix and flip.
Investors will be willing to pay extra if you have already completed the significant repairs and the house is in good condition. It will save them time and additional investment and can bring you a better deal.
Retirees Avoiding Mortgage
People retired even during the pandemic, and things were rather hard for some of them. Some of them had to sell their larger homes and move into smaller ones. Retirees do not want to burden of paying a mortgage at that age. They find it easier to use their savings and retirement money instead.
Also, by paying the price in cash, they don’t have to wait for a long time to take possession of the house and move in. It is rather crucial if they have recently sold their previous home and need to find a new home quickly.
Wealthy Buyers with No Money Troubles
It is indeed an ideal scenario, pandemic or not. A wealthy buyer with no money troubles can easily buy your home for cash. The pandemic didn’t drastically affect wealthy people's income, and they are still capable of buying your home. It increases your chances of selling the home faster and getting the amount in your hands.
iBuyer companies are gaining popularity in the market. These companies use technology to achieve their goal. They’ll approach you with an all-cash offer if they like your house on the listing. If you accept the offer, they’ll take care of the rest of the details. The companies primarily resell the houses though it is a different process from flipping.
iBuyer companies offer multiple service packages to choose if you want to buy, sell, or trade one home for another. The companies also provide insurance, repairing, and financing services.
The bottom line is that an iBuyer company is one of the best all-cash deals you can get for your home in a pandemic. You can use their services to sell the house and buy another one without hiring an agent.
Buyers Who Just Sold a Home
People who have recently sold their homes are looking to invest quickly in another during the pandemic. It is tenants who have suffered the most last year, and that’s an experience many don’t want to repeat again. Instead, they would use their money from the sales to buy a new home than save it for later. It makes sense to live in one’s home when that’s where we have to be 24*7, isn’t it?
We can safely conclude that fair cash offer has become more attractive during the pandemic. However, to ensure that there is no fall-through with the buyer or the risk of any other issue cropping up, it is recommended to hire a real estate service provider in Houston who specializes in finding and closing all-cash deals for sellers.