If you’re getting ready to put your house up for sale you may have heard how many Detroit property owners prefer selling for cash. With so many ways to sell a house, what’s all the hype about cash? If you are wondering why so many sellers choose this method of sale, we are going to break it down for you very simple in this post. Let’s look at the details for why selling for cash is preferred in Detroit.
Mortgages Can Fall Apart
There are endless reasons for this happening but let’s focus on the most common causes. When someone applies for a loan they are required to jump through many hoops. They must show the lender that they have a steady employment history and pass through a list of income requirements to prequalify. Plus they usually need to have a certain credit score and maintain that score until the loan actually closes. Then there’s the down payment, the inspection and the appraisal. The property must appraise for at least the sale price in order to be approved and for the sale to go through.
A professional home inspection is required whenever a buyer is obtaining a loan to purchase a home. If for whatever reason the house fails the inspection there are 3 things that can happen. One is that the buyer will simply walk away from the deal and it’s over. Two is they will request that you fix whatever issues caused the failed inspection or three, they will try to renegotiated a lower price.
Land Contracts Have A High Rate Of Default
Although selling for cash is by far the most popular method of sale for Detroit real estate, you may have heard about the popularity of land contracts as well. Selling your house on a land contract comes with a very high level of risk. Keep in mind the main reason a buyer will even consider purchasing a house on a land contract is because they have bad credit. In other words most conventional lending institutions consider these buyers to be a bad bet.
Major Benefits Of A Cash Sale
When selling your house to a true cash buyer it is usually a very straightforward chain of events. There is no bank approval process, usually no 5 point home inspection and no hard appraisal. There is also no waiting around for a loan to close and the buyer can buy your house quickly! In a cash sale you can sell your house as is, in any condition.