Should I Prefer Cash for Home in Phoenix?

Should I Prefer Cash for Home in Phoenix?

Take for instance, you have listed your home to sell on market price. You got a cash offer less than quoted price. Your house has only been on the market for six days, has had a handful of viewings already, and you have four appointments for viewings just today. You’re inclined to counter higher or reject and hold out for something higher, but you also need to unload the house quickly as you are in the process of buying, too. What would you do?

What you should consider?

What’s the current housing market like in your area?  If your house has been on the market for 6 days and you’ve only gotten one offer (lower than listing), then you’re definitely overpriced (but maybe only by a little). In that case, just take the cash offer.

If your market isn’t so crazy, then it depends on if the cash offer has waived contingencies (specifically, inspection). Because unless your house is in tip top shape, it’s easy to sink several thousand into fixing up the house (or lowering the price that much for the buyer to fix it up). On the house I’m buying, this includes fixing the electric polarity and putting in GFCIs. On the previous house I bought, there was a large lumpsum for replacing the roof. So if your house is not perfect AND the cash buyer offered to waive the inspection contingency, You must go with your realtor’s recommendation of countering to higher offer.

Also, consider that someone who nominally offers “full price” might ask for 3% back for closing costs, which would bring the effective sales price down to cash offering price or near about.

If I were purchasing a house and need to sell this one in order to purchase the next one, I would sell. Now. (Again, this is more applicable to a hot market.) Because most sellers in my market wouldn’t even consider accepting an offer that is contingent on you selling your home.

If you really want/need the extra 4 grand, and you’re not in a hurry, and the market is rising very steadily in your neighborhood, and you’re confident your price is correct, then you must hold out. Eventually, you’ll get the amount you want.

But I think the conclusion is that there isn’t a one good answer. If I were you, I would sell this house first before trying to buy another house. And if I think my house is overpriced, I would accept a cash offer at value (or slightly below).

 

 

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