Average discount for a cash purchase of a home

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Heather Jones
Heather Jones
I'm Heather, an author passionate about home improvements. My writing is your guide to making homes better. Let's explore easy ways to enhance your living spaces, from small fixes to exciting projects. Join me on a journey of making your house a cozy and stylish haven.

If you are selling a house, you may be tempted to accept an all-cash offer because it is more likely to close and face fewer stumbling blocks than a regular sale backed by a conventional or FHA loan. Also, you know that lenders, in general, require that the home be appraised before the closing and if the appraised value of the property is lower than the amount of the mortgage it can lead to disruptions in the process and even to contract cancellations.


On the other side, if you are looking to buy a house, you may be facing several contingencies. Your qualifications may be questioned under scrutiny, you might have had several jobs within the past two years, your financial situation may have changed prior to the closing, you might have just made another big purchase such as a car or you might even have been the victim of identity theft. Any or all of these situations may make you unqualified to receive a conventional mortgage and taking the all-cash route may be your best option for buying a house.

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That is why both sides may benefit from an all-cash purchase. They proceed more quickly, they face fewer obstacles, and both parties may feel like they come out a winner in an all-cash transaction.

Why would a buyer benefit from paying cash for a property?

There are many reasons why sellers prefer a cash settlement. But from a buyer’s perspective, a buyer that comes with a cash offer will always be picked out over another one that needs to be qualified for a mortgage in situations where multiple offers are present.

Having the cash on hand provides a buyer with a powerful negotiating tool. Also, paying for a house in cash and needing no mortgage, obviously means there are no monthly payments. The equity in the home is also useful in cases of a financial emergency. And when the markets fluctuate, a home that is fully paid off will withstand the fluctuations more and, when it comes time to sell, there will be no restrictions on title transfer because of an underlying loan since there isn’t one.

So, how much of a discount on the price of the house can a cash buyer expect?

Many times, a cash buyer approaches a homeowner who faces a distressful situation and is in a rush to sell. As they are offering cold, hard cash, the seller will be much more tempted to say yes even to a significantly low offer. Particularly because they know they will not have to wait for financing arrangements to come through. There’s no way to put an absolute number on how low an offer a seller will accept but, on average, an all-cash buyer can come in with an offer of about 65% of a home’s fair market value.

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The benefits when working with https://www.fthomebuyers.com are plenty. Closing on the property you are interested in can happen in as little as seven days or longer if that’s what you need. If you are interested in selling your house or any other property for cash and learning all the advantages of such a sale, get in touch with us today. You’ll be glad you did and can get the peace of mind you desire when it comes to finding your financial stability.

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