Cash-offers give buyers a significant advantage because sellers will take the lowest offer if it’s all cash because they don’t have to be worried about delays due to the buyer financing issues.

On average, it takes a sale 45 days to close from when the seller accepts the offer. The deal can fall through for numerous reasons during the process, and the buyer’s inability to qualify for financing is one of the most common reasons. An all-cash offer removes that risk.

According to the Case-Shiller U.S. National Home Price Index,  home prices continue to surge across the country.  Prospective buyers often find themselves in brutal bidding wars.

Even buyers with excellent credit scores and pre-approval letters for a conventional loan are having difficulty finding a home, and many of them have been house-hunting for a few years.

A typical seller gets around 50 to 75 offers 24 hours after the listing goes live.  Moreover, the home can be on and off Zillow within 48 hours.  An all-cash offer is a sure way to get your bid on top of the list. 

All-cash Offer with No Cash

In case you are wondering where in the heck you are going to find money to make an all-cash offer, at least $500,000 if you want to buy a typical home in South Florida.  

Wonder No More!  Cash-offer companies will make an all-cash offer and buy your dream home and sell it back to you.  They get compensated through commissions, fees, or both.

The startup companies allow you to compete with second-home buyers, retirees, and investors. Frustrated home buyers can benefit from the service that the cash-offer companies provide.  According to the latest NAR statistics, 23% of U.S. home sales were all-cash transactions.

Buyer Beware! The industry is new, and cash-offer companies are still in their startup phase.  Although their business model has not yet been proven, the industry keeps growing, and new competition is sprung every day. 

HomeLight, Ribbon, Opendoor Technologies are amongst cash-offer companies that will let you compete in this hot real estate market with all-cash offers.

You need to do your due diligence before entering into a relationship with any of those companies. The average homebuyers have been offering 5% above the asking price. 

You can use that knowledge as a barometer to decide whether it makes sense to reach out to a cash-offer company.  

If you are thinking about offering 3% above the asking price to sweeten the deal, letting HomeLight submit an all-cash offer on your behalf makes perfect sense if its fee is 2% of the purchase price and the cash offer is at or below the list price.