How to Bid On A House with A Cash Offer

How to Bid On A House with A Cash Offer: The process for making an all-cash offer differs slightly from the process of making a traditional mortgage-contingent offer. First and most obviously, all-cash buyers don’t need to work with a mortgage lender to purchase a home. That means there’s no need to calculate or budget for monthly mortgage payments, so all the typical prep work of getting pre-approved and figuring out how much house you can afford goes out the window. You’ll simply make the offer and, if it gets accepted, go under contract. Keep in mind that you’ll still have to show proof of financial credibility, like a valid recent bank statement, but the documentation requirements are much less extensive. Consolidating the funds into a single account can help streamline this process.

Because all-cash buyers don’t need a mortgage, they do avoid some key lending costs like interest. However, other expenses like property taxes, HOA fees, and homeowner’s insurance will still need to be accounted for, so keep those top of mind when planning out the transaction. Title and escrow services will also need to be secured for the actual transfer of ownership and closing. Because there’s no lender involved, an appraisal isn’t required in all-cash transactions.

No matter what kind of offer you make on a home, working with a real estate agent during the bidding process always has benefits. Agents can help you determine your ideal offer number (which should be partially informed by comparable sales prices in the area), draw up and submit your offer details (including a proposed closing date and inspection contingencies), and negotiate with the seller. If you’re worried about the cost, remember that sellers pay for an agent’s fees so there’s no downside to leveraging this expertise. When everything is finalized, the funds for an all-cash transaction are typically transferred with a cashier’s check or electronically.

Yuval was born and raised in Israel and spent the early portion of his career managing retail locations and providing sales training for his retail teams. He switched over to real estate a few years ago and has focused on building and maintaining quality relationships with his clients. He prides himself on his commitment to working hard and communicating effectively. His favorite part of working at Homeinc is collaborating with the team in order to provide the best experience for his buyers and sellers. In his free time, Yuval enjoys traveling, playing sports and hanging out with his family and friends.

Take The Next Step

Get a free property analysis to find out what
your home is worth in the ever-changing real estate market.

Verified by