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Why do home sellers prefer all-cash buyers (which I presume is check, not literal bags of cash) over mortgage-backed buyers? Seller is getting whole amount upfront in either case, right? Is it just the lowered hassle of not having a bank in the loop? Am I missing something?
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In NYC it is very common (so common that lenders have a type of mortgage you can get AFTER an all-cash closing). It speeds time to close. Bank requires credit checks and appraisals. The latter became an issue during SIP bc appraisers couldn’t go out to see properties.
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As other have said, minimizes the possibility of deal falling through. Also just reduces hassle along the way (e.g. inspection/appraisal flags issues that prevent valuation hitting number required for borrower's LTV ratio, etc.)
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Just bought a house - it’s because there’s less chance of a cash purchase falling through & the seller losing a month on waiting for a deal that ends up dead at the last minute.
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We've been looking at homes; our agent told us that banks add time and chance that deal falls through... Various reasons, but stuff like bank appraises the house for less than the price agreed upon and gives borrower smaller loan.
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Deal break is near catastrophic to seller if you need proceeds of sale to move into a new home. Many people are selling their primary residence to move into another residence- adding a month or two to close may make other leg of trade impossible,expensive or a logistics nightmare