Here’s our explanation of the difference between cash and financed offers.
You’ve probably heard the phrase cash is king before, but is that true? Today we want to discuss the differences between cash and financed offers.
The best thing about cash offers is that there are no financing contingencies. On the other hand, financed offers are contingent on approval from whoever is providing the loan. If the financial party decides they don’t want to fund the purchase, they can back out anytime. With cash, all you have to do is show proof of funds. At the end of the day, cash is less of a hassle.
Despite this, most offers are financed because most buyers don’t have a spare hundred thousand dollars lying around. There are many types of financed offers that have unique pros and cons. Navigating the differences is one of the biggest hassles of financed offers.
If you are looking to buy or sell a home, and you have questions about cash or financed offers, please reach out to us. We can help you navigate all the different financing options available. We look forward to hearing from you!
