Every now and then when a person is selling their home, a cash buyer comes into the equation. If you have listed your home for sale and your real estate agent has informed you that a cash buyer is interested, you will want to understand how this affects the potential sale.
What Is A Cash Buyer?
A cash buyer is a buyer who will not be applying for a loan to buy your house. They already have the financial resources available to make the purchase without external loans.
Cash buyers do not necessarily have the whole amount in cash sitting in their savings accounts, though. They may have the money tied up in a retirement account, stocks, bonds or other commodities.
Is A Cash Buyer Desirable?
There are many benefits to having a cash buyer. For one, the deal will not fall apart for lack of financing because cash buyers do not need financing. As long as your real estate agent verifies the legitimate ability of a cash buyer to purchase your home, a cash buyer is very desirable.
What Does The Real Estate Agent Do With Cash Buyers?
Cash buyers should submit their financial records to your real estate agent so your agent can confirm that they have the money available to pay without financing. Proof of funds might be a recent bank statement, financial records from stock holdings or something similar.
If a cash buyer refuses to submit proof of funds available, then you and your agent should assume that they may not be a genuine cash buyer.
What Are The Risks With Cash Buyers?
Sometimes a buyer comes along who claims to be a cash buyer but is not. Maybe they intend on getting private financing, or they do not want to be bothered with a pre-approval. For whatever reason, it is essential for your agent to get proof. Otherwise, a non-cash buyer who pretends to be could derail your sale.
For instance, you might have entertained other offers if you had known that person was not really as liquid as they claimed.
Your real estate agent will cover your interests if a cash buyer comes along. Just know that if you do have a genuine offer from a cash buyer, your closing will likely be very smooth.
