Are you tired of losing out on your dream home to all-cash buyers? You might be wondering how you can compete with cash and win. In this article, we will explore the advantages of being a cash buyer, why sellers prefer cash offers, and how NAF Cash* can help you compete with all-cash buyers and get your offer accepted.
Cash Buyer Definition
Before we dive into the advantages of a potential homeowner becoming a cash buyer, it's important to define what a cash buyer is. A cash buyer is an individual or entity that purchases a property with cash instead of financing the purchase through a mortgage, meaning that they pay the full price of the property upfront. This makes it possible to avoid the potential delays that can come with the traditional mortgage process.
Competition is Hot: Don't Lose Out on Your Dream Home
As home prices continue to rise and inventory remains low, competition for properties is hotter than ever. According to a survey by New American Funding, 68% of homebuyers are concerned about rising prices, and 61% are concerned about low inventory. Becoming a cash buyer can take some of the uncertainty out of your future as a homeowner.
Advantages of Being a Cash Buyer
As a cash buyer, you can have several advantages over buyers who are making their offers using a traditional mortgage. Here are some advantages of being a cash buyer:
- Sellers Prefer Cash – Sellers often prefer cash offers because they are considerably more likely to close quickly and without any complications. This can make your offer more appealing to sellers, increasing your chances of getting your offer accepted.
- Competitive Edge – As a cash buyer, you have a competitive edge over buyers who need to finance their purchase with a traditional mortgage. You don't have to worry about most contingencies that can delay in your financing or the possibility of your financing falling through, which can give you an edge in a competitive market.
- Stronger Negotiating Power – Cash buyers have more negotiating power because they don't need to wait for a lender to fund their purchase. This can allow them the chance to negotiate a lower purchase price or other concessions from the seller.
- Potentially Save Money – A study from researchers at the University of California - San Diego finds that in the last ten years, cash buyers pay about 11% less than those using a mortgage1.
NAF Cash
NAF Cash offers a solution for homebuyers who are looking to become cash buyers. This program allows homebuyers to make a cash offer on a property even if they don't have the funds upfront.
How NAF Cash Works
NAF Cash will purchase the listed home of your dreams upfront with cash on your behalf, then once the sale is complete and you have secured permanent financing from New American Funding, NAF Cash will sell the property back to you for the original price, plus a small service fee.
Benefits of NAF CASH
NAF Cash can benefit homebuyers in several ways:
- Competitive Edge – NAF Cash can help homebuyers compete with all-cash buyers to get their offers accepted.
- Faster Closing – NAF Cash can speed up the closing process. This is a significant advantage as it is more appealing to sellers.
- Flexibility – You aren't required to sell your previous house before you're able to move into your new home2, giving you flexibility as both a buyer and a seller.
Conclusion
In this competitive market, being a cash buyer can make all the difference, giving you an edge in making the winning offer for your dream home. As a cash buyer, you can have confidence that you will have a faster closing process, a simpler transaction for both you and the seller, and stronger negotiating power.
NAF Cash can help homebuyers become cash buyers without having to secure their mortgage upfront. Whether you choose to become a cash buyer or not, it is important to work with a trusted lender like New American Funding to explore your options for getting your dream home funded. Their Loan Officers can find the right product for your individual and personal needs.
FAQs
What is a cash buyer?
A cash buyer is an individual or entity that purchases a property with cash instead of financing the purchase through a mortgage.
How can cash buyers get their offers accepted in a competitive market?
Cash buyers can get their offers accepted in a competitive market by being prepared, working with a great real estate agent, and being flexible in their property search.
What is NAF Cash?
NAF Cash helps homebuyers to make a cash offer on a property the secure their mortgage once their offer has been accepted.
How does NAF Cash work?
NAF Cash will purchase your home upfront with cash on your behalf, then once the sale is complete and you have secured permanent financing from New American Funding, NAF Cash will sell the property back to you for the original price, plus a small service fee.
It is important to note that lenders will still require a homebuyer to meet certain qualifications and that will involve the traditional steps needed to secure a loan like getting a home appraisal and inspection to determine the condition of the property.
What are the benefits of NAF Cash?
NAF Cash can help homebuyers compete with all-cash buyers in multiple-offer bidding situations, speed up the closing process, and provide more flexibility in financing options.
*Loan products offered by New American Funding, LLC. dba New American Funding. NMLS #6606. www.nmlsconsumeraccess.org. Terms and Conditions apply. Loan products subject to credit and property approval. Not all applicants will qualify. © New American Funding, LLC. New American and New American Funding are registered trademarks of New American Funding, LLC. All Rights Reserved. Corp Office 14511 Myford Rd, Ste 100, Tustin, CA 92780. Ph 800-450-2010.
1https: //www.inman.com/2022/02/09/pros-and-cons-of-a-cash-deal-on-a-home-purchase-or-sale/
2Borrower will rent the home at the market rate until their new loan with New American Funding closes.
