What is a Cash Offer?
Have you ever heard someone say “someone just bought my house all in cash!” and wondered what it really meant? Well, in this blog post we will explain what it means. At its core, an “all cash offer” has to do with an investor or a high net worth individual purchasing a home all at once. Essentially, they write a check for the entire thing. No financing has to be approved by a bank or a mortgage company. The one caveat is that a lot of investors decide to use “hard money” loans to purchase these homes. All things considered, this is roughly the same as an all cash offer. These lenders typically have a relationship with the investors or high net worth individuals that take out these types of loans. Additionally, they are short term, high interest loans that are approved very quickly. When an investor tells you they are making you an “all cash offer” it typically would mean they are willing to withdraw funds from their personal or business bank accounts and write a check for the entire selling price of the home, or a hard money lender has just loaned them a sum of money on a short term basis that has been deposited right into their bank account to be paid back later at interest rates often upwards of 7%.
So, what is the advantage of an “all cash offer?” Well, in reality it is the timeliness nature of it. If no financing has to be approved, you know the real estate transaction is going to go through. The investor will purchase your home on the date that you specified. If you are facing foreclosure, are tired of paying high property taxes, or need the equity out of your home ASAP, then a cash offer is your best friend. Additionally, you do not need to go through the laborious and often costly process of setting up your home for sale with a real estate agent. The investor will buy AS IS, meaning you don’t need to clean up your yard, have to buy new furniture for showings, fix anything around the house like the roof, or even schedule out time for home inspections and other expensive things that come from selling with a realtor. Instead of the normal 2+ month amount of time that it takes, on top of paying agent fees and commissions that can reach as high as 6%, you can have your home sold in as little as one week. There are no contingencies of any kind!
At Smolin & Bell Group, we buy your house for ALL CASH. We can close in as little as one week. We are a Portland, OR based investment firm that has closed numerous deals with our investor partners. The benefits listed above could be yours. We only work on one project at a time. You are our priority! If you are interested at all, call us anytime for your cash offer. Either Harrison or Mir will pick up the phone, and you will get personalized service. Our number is 503-345-7636.
