While the strength of a cash offer is most obvious during a bidding war, cash offers are valuable in less competitive markets, too.
The team at Flyhomes, which helps clients both as a brokerage and a mortgage company, believe all offers will be cash offers in the near future.
In any market, the certainty of cash is valuable. When the market slowed during the early months of the pandemic, Flyhomes relied on cash offers to increase buyer and seller confidence during a time when so much else was up in the air.
Agent Arjun Nair from Flyhomes says, “Cash offers make more sense for both buyers and sellers because they provide certainty, speed, and simplicity. They make the transaction smoother and faster, which takes a lot of stress out of the equation.”
Nair is on the team running Flyhomes for Agents, a new way for agents to enable buyers to make cash offers without having the cash on hand. The program was created to enable more cash offers across US markets and is growing into new states throughout the rest of this year and into 2022.
These are the reasons Flyhomes is building its business with a focus on helping buyers make cash offers.
The benefits of a cash offer can outweigh tens of thousands of dollars in offer price.
Even when an offer is the only one on the table, cash buyers can save on the price that they might have to offer with financing.
We turn back to bidding wars to understand the savings. For Flyhomes offers in 2020, 53% of buyers won against higher offers. The average difference between a winning Cash Offer and the highest bid was 2.35%, or $18,000.
While a no-competition offer won’t have another bid to compare to, the same logic follows: cash offers have benefits that often mean more than money.
Cash brings certainty
For a seller, certainty is the difference between knowing your home is sold and wondering if your buyer will fall through, upsetting your plans and leaving you to re-list your home and take on the stigma that comes with being back on the market.
Cash offers empower buyers to avoid finance contingencies, so the seller can be sure the buyer is ready to pay for the home. The funds are ready and waiting.
Cash offers close fast
Avoiding the financing period allows both the buyer and seller to get through the closing process quickly. While financed buyers typically wait up to 45 days to move into their new homes after their offer is accepted, Flyhomes Cash Offer buyers move in as few as 10 days.
For sellers, putting the process behind them quickly means getting to their fresh start sooner. Shortening the timeline between accepting an offer and closing means getting the money and moving on.
Cash offers are simple
Flyhomes Cash Offers often come without financing, inspection, or appraisal contingencies. In addition to setting the stage for a fast closing, a simple offer just makes it easier to say “yes” and seal the deal.
With fewer variables that could become issues, both the buyer and the seller have less worries throughout the purchase and closing process.
How to make a cash offer without the cash
A Flyhomes Cash Offer works by giving a short-term loan to a pre-underwritten buyer to fund their purchase. Once the sale closes, the buyer refinances with the lender of their choice into their long-term mortgage loan.
Want to empower your clients to make cash offers? Learn more about Flyhomes for Agents.
Flyhomes is on a mission to build the world’s best homebuying experience. Launched in 2016 by Tushar Garg and Stephen Lane, Flyhomes has reinvented the homebuying process at every step. To date, we have helped thousands of people close on more than $2.6 billion worth of homes using the Flyhomes Cash Offer.