In competitive housing markets, homebuyers are discovering that offering cash increases their chances of winning in multiple offer situations. Sellers prefer cash offers as they eliminate the uncertainty and slow process of working with a traditional mortgage lender.
There is a common belief that making an all-cash offer requires a significant amount of money in your bank account or a wealthy relative who can provide the funds.
Additionally, there is an alternative for buyers who may not have significant financial resources: submitting an all-cash offer with the assistance of a lender. This provides the same advantages as a cash offer, without requiring immediate liquidity. This can be considered a favorable outcome.
Cash buyers are responsible for paying closing costs, even if they are making a cash offer on a house facilitated by a mortgage lender. In fact, all-cash offers are subject to many of the same closing costs that any buyer pays when following the traditional mortgage process.