Danbury Real Estate Blog

How people are paying for house is important. When working with a home seller, there can be advantages of taking a cash offer over one from a buyer that need financing

Some reasons are valid, such as the seller needing to close quickly (due to things like a divorce, financial hardship, or relocation). Some properties may not qualify for financing due to condition. It can also be needed if the property could have an appraisal issue. 
A cash sale should give the seller more certainty of a transaction closing compared to the risk for finaiucng. A cash offer means there is no financing or appraisal contingency; it doesn't mean the buyer can't choose to get a loan but if they don't get a loan, they can potentially lose their deposit funds if they don't perform (seek legal counsel). 

Also consider the following. If there are multiple offers, and the cash offer is competitive versus financing, is the risk worth it if the offer amounts are close? A financed offer that is high with an appraisal gap offered or appraisal contingency waived, that is $40,000 high, might be worth it if the buyer is well qualified. In certain price ranges or property types, there is more people with cash than those seeking mortgages. 
Watch for red flags: confirm the buyer is legimate and the proof of funds is legitimate. Some cash buyers feel sellers should give them a discount in exchange for speed and certainty. There is also potential for wire fraud. 

Ultimately, whether a buyer has in paying cash or getting a mortgage not, sellers are not likely getting their hands on any of the money until the day of the closing. All offfers will be presented and evaluated so the sellers can decide how they wish to proceed with negotations.