A cash offer that is a little lower may not seem as appealing as a higher financed offer. Let me explain why that cash offer is actually your best bet!
Why Should You Take the Cash Offer on Your Home?
The sweet spot for selling homes depends on the area in which you live. For me, in Lake Mary Fl, the sweet spot is $150,00 – $300,000 for this real estate market. If your home is recently updated and well-maintained with a crisp exterior that offers a clean curb appeal, your home will just rock with offers.
Chances are really good that you will get multiple offers, and this is a good thing. Multiple offers mean options for you as the seller. It also means that buyers will often bid up the price. Let’s say for instance that you are asking $250,000 for your home. Multiple offers mean buyers could very well bump the price up to $275,000! This is $25,000 more than your original asking price which is very exciting!
This is great news but hold on just a second. Do not count your chickens before they hatch. Unless that offer is a cash offer, you will have to jump through a few more hoops before this extra money can be taken to the bank. You must go through the appraisal process.
Cash Offers are Best (Even if They are Slightly Lower)
If you receive a cash offer that is fairly close to the financed offers, you should take that offer. The reason is that with a cash offer, you do not have to wait to get an appraisal. When going through the appraisal process, there is always the concern that the house will not appraise for what you anticipate. This means your house may not sell for the price you want it to. Let me give you an example.
Just recently, a home I was selling went through the appraisal process. This is a process that it had gone through many times in the past. However, during this particular appraisal, it was discovered that the home is actually 150 sq. ft. smaller than what is listed on the tax roll. Due to this shortage of square feet, the seller had to lower the sales price by $20,000! This is now how the seller thought it would appraise.
The moral of this story is to take the cash offer even if it might be a little lower. In most cases, a home with a cash offer does not need an appraisal and you are able to close on your home much easier without jumping through hoops.
With over 30 years of experience as a Realtor, I am more than happy to answer any questions you might have and help you navigate through the home selling process. Until next time, this is Gitta! Happy home selling!