How a Cash Offer Can Help You Remove Contingencies

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• Skip Financing & Appraisal Contingencies with A Cash Offer •

When it comes to making a cash offer on a house, bigger isn’t necessarily always better. Most sellers & their agents don’t just look solely for the highest offer; rather, they also consider ones most likely to close — with the fewest headaches.

Sellers want to avoid hangups and hassles. In other words, they want an offer without contingencies to reduce risks.

If you’ve always thought of contingencies as sort of an “escape clause” in your contract, you’re not alone. And while it’s true that having contingencies in place can sometimes make the offer “safer” for you as a buyer, they also make an offer appear riskier to a seller, since there’s always a chance of the sale falling through. If your offer does have contingencies, even if it is an all-cash one, it may still be less competitive — especially in a hot seller’s market.

But before we explore how to remove contingencies by placing a cash offer on house, let’s first take a closer look at the benefits and how it can help you win your dream home.

How to Remove Contingencies When Making a Cash Offer on a House

Benefits of an All-Cash Offer

While it is true that sellers prefer cash offers, there are clear benefits attributed to them. The home buying process can be tiresome and slow, especially if you are trying to buy one in a hot sellers’ market and compete with many others. A cash offer on a house is a great way to help you stand out as a buyer and speed up the sale process.

You’ve likely heard that “all transactions lead to cash in the end.” Still, the realities and limitations of financing will always place potential obstacles between a buyer and the closing table. Naturally, sellers are more inclined to consider buyers who faces fewer potential obstacles. Making a cash offer for a house is a great way to place yours at the top of their list.

In fact, some sellers even choose an all-cash offer over even higher-priced offers with conventional financing. They recognize that a cash offer with proof of funds is much more likely to close successfully. And because sellers prefer cash deals, it makes sense for buyers to make an all-cash offer if they have the means.

Cash sales are also faster than sales with traditional financing. Without securing mortgage financing, buyers don’t have to wait the traditional 30 to 60 days to close on a home. The bottom line: making a cash offer on a home speeds up the sales process, putting money in the seller’s pocket faster and placing you in a new home sooner — making everyone happy.

What Are Contingencies?

A contingency is a clause built into your offer, outlining certain conditions that must be met for your deal to close. If these conditions or stipulations are not met, the buyer can break the contract without facing any financial repercussions. In other words, a contingency is a way to provide buyers with a sense of protection against some of the risks involved in purchasing a home.

The most common types of contingency clauses include:

  • Inspection contingency. This protects a buyer from purchasing a home that is proven to be in poor condition after the inspection.
  • Financing contingency. This allows the buyer to get out of the contract if they cannot obtain the necessary mortgage to afford the home.
  • Home sale contingency. This provides a buyer time to sell their home and allows them to back out of the contract if they don’t secure the sale of their current home in a specified time.
  • Appraisal contingency. If the appraised value of the home comes back lower than the agreed-upon sales price, the buyer can take back their offer.
  • Title Contingency. If the seller cannot transfer the title of the home free and clear to the buyer. This protects the buyer from having to purchase the home.

The Bottom Line

Sellers will take all-cash offers over traditional mortgage-backed offers 9 times out of 10. With Reali Cash Offer, your dream home is just one all-cash offer away. It can help you remove most contingencies and increase your chances of winning a home you love.

If you’re buying and selling at the same time, we’ve got you covered there, too. With our Buy Before You Sell program, you can sidestep the competition and use our capital to make an all-cash offer, landing your new home faster than ever before. And then, we’ll get your home sold for more.

Combined with the expertise of your local Reali Agent, we can help you shop for the right home with confidence — and with less stress. Ready to find your new home? We’re here to help. Call us at (858) 880-0195 or email portia.green@compass.com to get started with Reali today.

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About The Author
Portia Green, REALTOR®

Portia Green is a highly experienced full-time REALTOR® specializing in the representation of Sellers, heralded by her clients as data-driven and an effective negotiator. Producing $25M total in residential sales volume, Portia's goal is to help her clients achieve the best results when selling their homes and to make their experience an enjoyable one. She has successfully sold real estate since 2008 and has gained an in-depth knowledge of local real estate markets & seasonal trends. Portia has achieved a 100% customer satisfaction rating and wants to share her expertise & personal service with you in the sale of your home. When listing your home with Portia Green and Compass, you'll receive the hands-on service you need and desire. Portia will help you manage the entire process of selling your home from pricing, preparing and staging the house, to marketing, negotiating offers, inspections, all the way to closing. She will recommend skilled vendors for any job needed, personally host Open Houses, and ensure that all showings are accompanied. At Compass, Portia offers a wise no-nonsense way to sell your home for the best price and the least hassle. With a keen eye for staging & preparing listings to maximize Buyer appeal, all of Portia Green's listings are professionally photographed using HDR (High Dynamic Range) photography to provide the highest quality photos in the industry. Professionally printed marketing materials are prepared for all Open Houses. We also capture a 3D scan of your home that creates an interactive walkthrough online along with a custom-designed floor plan and targeted digital marketing campaigns on Google & the most popular social media channels. Compass participates in the Multiple Listing Service, which is the local real estate database of homes listed for sale that all REALTORS® use in helping their Buyers find houses. Your home will appear on every real estate website, in its best light, making a stunning camera-ready debut. Portia Green's home valuation expertise and extensive experience in comparative market analysis will help price your home accurately. She has refined her skills to help you pinpoint which features of your home will result in more showings and better results. Her mantra is for you to be ready to sell your home and feel good about that first. Portia knows that home inspectors always find a problem; that drones take some of the best photos in town; and that her eyebrows will grow to the floor in the time it takes her to read everything that's happening with your HOA, but that doesn't mean she won't do it anyway. Eyebrows be damned. You'll always need a place to unplug, connect, dream, grow, or just be yourself. That makes what Portia does even more meaningful. She’s ready to go the extra mile to help you find just the place. Whether you're selling your very first home, offloading an investment property, or want a vacation getaway with passive income, she is attentive to the details of every home sale. Portia helps busy people navigate this crazy real estate market like a pro, so don't be shy. Every great relationship starts with free advice and a friendly chat. Ask as many questions as you need to. Selling houses is her jam! www.portia.realtor