In a hot housing market, where competition is fierce, buyers who cash offer for house can have a leg up. Cash offers indicate that the buyer has enough money to purchase the home without a mortgage and can close quickly. This makes them more attractive to sellers, who may be worried about potential financing hiccups that could derail a sale in the final stages.
However, it’s important to note that cash purchases don’t completely eliminate the risk of sale snags. A seller’s lender will still want to make sure that the sale price is fair and that the property has been adequately appraised. And while a buyer with cash can typically avoid certain contingencies—such as a financing or inspection contingency—they will likely still need to provide proof of funds and have sufficient equity in the property to complete the transaction.
The percentage of cash sales varies by market. According to a study by ATTOM Data Solutions, all-cash transactions made up 29% of single-family home and condo sales nationwide in 2018, with the highest share of such sales occurring in Montgomery, Alabama; Naples, Florida; and Macon, Georgia.
If you’re thinking about selling your Brooklyn or New York City property, the best way to ensure a quick and painless sale is to partner with an experienced real estate professional. They’ll know the local market and how to price your home to sell fast—and for top dollar. And if you’re ready to skip the listing process and sell your home directly to an investor or “we buy houses” company, Opendoor can help.