When many people start looking for a new home, they wonder what they should choose and how much of an investment it will be. Although many people aren't quite sure about what their new home will look like, the fact of the matter is that there are many aspects to be mindful of when it comes to real estate. From paying attention to how much things cost to looking carefully at your options, it really pays to understand and apply a little wisdom before you break ground on a project. Check out these posts to find out great tips about real estate.
When most home buyers place an offer on a home that they want to purchase, the offer is understood to be contingent upon a process of research and negotiation that follows. Some home buyers will make guaranteed offers that aren't subject to contingencies, though. If you're currently selling your home, there are good reasons to accept a guaranteed offer from a buyer.
Fewer Steps to Complete Before Closing
When a guaranteed offer is made, the offer is usually a cash offer. This doesn't mean that the buyer will show up with actual cash at the time of closing. Rather, it means that the buyer is paying the full purchase price of your home themselves (usually by electronic transfer or check) — and they don't have to take out a mortgage. The lack of a mortgage has two major benefits for both the home buyer and you, as the home seller.
First, there are fewer steps that the buyer must go through between the time of the offer and the time of closing. They simply don't have to compile a mortgage application, submit the application, and wait for a bank to determine whether their application is approved. This can speed up the sale process and help you officially sell your house a little sooner.
Second, a buyer who can pay the full price of your home themselves isn't subject to the whims of a lender. Since they don't need a mortgage, you don't have to worry about whether they'll be approved for one. Buyers who do need a mortgage sometimes aren't approved, and this can cause a potential sale to fall apart.
No Further Negotiation on Price
Once you accept a guaranteed offer for your home, you know exactly how much your home will sell for. This isn't always the case when a home seller accepts a buyer's offer for their house.
In most home-buying situations, the home buyer makes an offer and then there's a process of negotiation that follows. The buyer frequently pays for a home inspection, which investigates the condition of various systems and structures in the home, and any defects that are found might be used as points of negotiation.
If you have a guaranteed offer, in contrast, you don't have to worry about the actual sale price dropping due to a home inspection or negotiations. The price of the offer will be the sale price regardless of what the buyer discovers about your house.
Share11 March 2020
