Common Questions About Closing

Often times as agents we come across certain questions or situations that are quite common to us, the job of a real estate agent is not only to help you but to educate the public on all things real estate.    These next few blogs I want to address each situation and the common questions or fears that a buyer or seller may encounter.  Each week will be a different topic - if you have a specific question please feel free to comment and I will make sure to either answer you directly or write a blog specifically to answer your question !

How Is The Closing Date Determined ?
Your closing date is determined usually between 4 - 6 weeks from the time you go into contract.  Often times sellers will ask why the date on the sales agreement is different from the date in the contract.  This normally will take place because the date on the sales agreement is 4 - 6 weeks from the day the offer is presented.  If negotiations take a week, or there is a delay in order to perform a home inspection the attorneys will extend the closing date to give the buyer adequate time because of the delay.

What Is The Closing Date VS Commitment Date ?
In all real estate deals that involve a bank there will be a smaller window of time for the buyer to obtain their mortgage commitment - this is generally 30 - 45 days it is the most important part of the transaction.  After the commitment is received there are still additional steps left to be able to get to the closing table including the title report and information they may request.  These are the items that generally take a bit longer to pull together which is why they have 2 dates for these items to be completed.

Why Does The Kind Of Deal Effect Closing Date ? 
All Cash deals tend to move a bit quicker because their is no bank involved so you move straight to simply waiting for a clear title without having to wait for the bank.  Cash deals are still entitled to home inspections but typically the home will be sold as is so their will be no repair requests to be fulfilled.

Deals that involve the buyer obtaining a mortgage are at the mercy of the bank, unfortunately not even the buyer has any control on how quickly or slowly the wheels will go into motion.  The bank appraiser will also play a role, they are a hired 3rd party and also do not answer to the buyer.  The amount of time it takes for them to complete the appraisal and the bank to receive and approve it can take time.   The larger the bank does not always mean they will move quicker than a smaller bank because they will have many loans that need to be serviced.

How Much Time After The On Or About Date Do You Have ? 
There is a "grace period" from the on or about closing date, the reason why is because sometimes the timing of a move can be tricky.  If the seller is moving into another home it may or may not be available, or buyers could be moving from another state or area.  Because the timing is something that might need to be finessed a bit you are given 30 days from your on or about date to get to the closing table.

Can Either Party Require Closing Before The Closing Date ?
Typically no one can "force" a buyer or seller to close before the on or about date.  Even if buyer and seller agree they want to move quickly getting it on paper involves a few other important parties.  The attorneys of course will need to be available, but the schedule of the bank attorney as well as the title closer need to be available as well.  This can sometime push a closing to a later than one may want - if you need to close quickly giving your agent a realistic date for them to help you navigate if the buyer or the home is right for you is very important.

Can A Seller Simply "Change Their Mind" About Selling ? 
The seller can always change their mind, but often financially it is not recommend.  If the seller defaults you can sue for specific performance forcing them to sell the home.  They will also become responsible for the costs that you had from appraisal/mortgage fees, inspections, and even agents commission.  Once you have hit the "On Or About Closing Date" if they seem to be a bit hesitant on the sale you can & should request a time of the essence letter to be sent out regarding your closing.

Can A Buyer Simply "Change Their Mind" About Buying ? 
Just as a seller can back out with repercussions that same goes for the buyer.  There are a few circumstances though for a buyer where they will not be in breach of the contract.  If they are unable to obtain a mortgage, this is not something that they can just say.  Their must be a letter from the bank which proves that they applied for the mortgage and it was denied.  The buyer also has the right to re-negotiate if the home does not appraise for the sales price - if a new price is not agreed upon they have the right to not purchase.

So Many Houses, How Do You Make It Easier ?

With so many homes on the market, buyers have more than a few homes to choose from.  The larger area you are looking in you may find it a bit overwhelming getting in to see them all, as well your agent will be calling you with much more in the way of updates on the homes.  This blog will help you make it through the process of finding the right home, and keeping it from being an overwhelming and sometimes confusing process.

Decide What Kind Of Sale You Want & Timeline ! 

• Even if you don't have a rush on your move, you should have a ideal timeline in which you want to compete your purchase.  This will help your agent narrow down homes by the type of sale and put them in an order which will allow you to know what homes will be quicker sales than others.  
• The type of sale is also important for what kind of representations you want the seller to provide.  Typically short sales and estate sales will not be willing to do any work or repairs to a home, verse a homeowner who normally will be willing to do repairs or treatments to the home.  

Set The Time Aside For Your Agent

• When your looking to set up private viewings of homes, your agent will normally need to give at least 24 hours notice to get into listings, but we will need another 24 hours to be able to get status updates and get those appointments confirmed.   This is something that is very important because you will not want to rush through the homes so your agent being able to schedule them with time in-between is very important.  Typically I always figure that we will be in the home for at least 20 minutes, but remember that their will need to be travel time as well.  
• When you are heading out with your agent you may not want to see too many in one day.  The reason why is because you will begin to forget what homes had what, as well as your true feeling for them.  After seeing anything more than 6 houses we find that buyers and agents alike begin to rush through them, although not on purpose and it is always best to not overwhelm yourself.  

Let Your Agent Do The Work 

• Trulia & Zillow are very informative websites but you should be utilizing a Buyers Agent.  As agents and brokers the information we are able to see on listings are not the same.  We are able to go thru listings and see if the home is a strictly cash deal , in some cases it might be sold with tenant still occupying, or simply temporarily off the market.  You will also see that those sites will have homes listed as "pre-foreclosure" which means that they will not have typical showing instructions because they are not currently listed they are based on foreclosure notice. Allowing your agent to pull the listings for you, not only will you get listings but they will be the kind you are looking for ! 
• You will be receiving hi-lite sheets from all homes, you will want to let your agent keep track of those that you did not like this way their is a record of them, and keep only the homes you liked.  I provide all of my buyers with copies and binder to keep all of the information we receive in, this also helps when it comes to placing offers.  

The best piece of advice I can give to any buyer who is thinking about buying a home is to unitize the experience of a Certified Buyer Representative and sign into a Buyer Broker Agreement.  There are many reasons why we recommend this to you which you can find the blog HERE. 

What Should You Look For When Buying A Renovated Home ?

The weather has finally warmed up and the real estate market has too ! We are seeing a lot of renovated homes come onto the market, and most people are a bit hesitant to make a purchase because they do carry a large amount of "what ifs" so to speak. This blog will give you some tips on how to critique a renovated home, and what you should be looking for !

Tip 1: Buyer Broker

• You should always be using a buyers broker, since you pay for one regardless it is always my advice for every buyer to take advantage of this.  It is extremely important in this situation because you truly need someone who is going to do the homework that is necessary when purchasing a renovation.  
• Your buyers broker will be able to find out information for you like when they purchased the property and how much.  They will also be able to pull the current assessed value of the home to make sure if your property is re-assessed after your purchase at its new value that your taxes will still be reasonable and you will not have any surprises.  

Tip 2: Its All About The Numbers 

• Buying a property that was an investment has a great benefit that these investors do not have the emotional investment in the home, it is all about numbers for them.  They want these properties to move so they can move onto their next one.  You should speak with your agent to find out how much they purchased it for initially and keep in mind depending on the length of time you should add in the taxes they have been paying.  
• After you know what they paid including the taxes you and your agent should of course run the comparable homes in the area keeping in mind their is an increased value since the items would be consider new rather than updated.  You will want to take into account some very specific items being new or original to the home such as electric, plumbing and heating.  

Tip 3: It All Looks New What Should You Be Looking For 

• Electrical: Some investors may opt to not change out the electric in a home, they simply may update the panel and put in newer electrical boxes.  Your agent should be able to tell you what the ampage of the home is by looking at the box, but you should always be sure to have an inspector actually take off the panel to make sure it was wired correctly.  If the home has the original box as well as original wiring you may want to consider the cost for you to do this upgrade if you plan on adding things like central air or a central vac system.  
• Plumbing: Most homes built on Long Island will still contain original plumbing, but when we refer to it we are actually referring to the bones of the plumbing not necessarily the copper which you may think.  When homes are upgraded they are changed over to PVC piping which is easy to spot if the basement or crawl space is unfinished.  The original piping is not a safety issue but a matter a functionality over time it gets build up and may result in lower water pressure.  
• Heating: This is a big one, many investors will upgrade a home to a gas heating system when they can.  If it has not been your agent can call the gas company and see if there is already gas lines ran on the street.  What you should be looking for is the age and condition of the boiler and the hot water heater in the home.  Just because it is older does not mean it needed to be upgraded, if it is nearing the end of its days a good investor will put in a new one.  For those which don't need the upgrade most investors will at least get it checked and serviced before putting the home back onto the market.  
• Timeframe: You will want to take into consideration not only for price but quality of workmanship by looking at how long it took them.  Most investors will have crews ready to begin the repairs immediately upon closing, and may choose to put it onto the market before some work is complete to give the buyers options regarding cabinetry and colors.  If the home was flipped too quickly you may want to consider what quality of work was put into it.   Regardless of this time frame ALWAYS be sure to have a good home inspector ! 

These are just some of the tips that are important when your purchasing a renovated home, each home will be unique so make sure you have open communication with your buyers brokers about both your wants and needs of now and in the future to make sure the home is right for you ! Many renovated homes will be aggressively priced and highly marketed, which means they often receive multiple offers so you will want to have all your "ducks in a row" in order to purchase one, including your mortgage pre-approval, down payment, and attorney information available to move along quickly once you have gotten your accepted offer ! 

What Buyers Should Know About The Home Inspection Process

You've found the perfect home but now it is time for the most stressful part of purchasing your new home, the home inspection.  This blog will give you the run-down of what a buyer should be doing before and after the inspection !

Step 1: Pick The Right Home Inspector For You 

• You want to make sure that you don't choose your inspector strictly by price, they range from $500 - $800.  The cheapest is more than likely not the best, but that doesn't mean the most expensive is the best either.  Ask them how they document what they find, and what kind of things are included on their report ? (EX: Do they take serial numbers of the appliances, Do they give repair estimates) 

• All homes in NYS that are being purchased with the help of a mortgage will require a termite report, you should ask your prospective inspectors if they are certified for the termite inspection or will you need to hire a 2nd inspector. 

Step 2: Make A List Of Questions

• Before your home inspection you should sit down with all the decision makers that are involved, and have a list of questions you have about the home prior to the inspection.  Once your at your home inspection you will be overwhelmed by the amount of information you will be receiving so making note of your specific questions will help you to get the answers to what is important to you. 

Step 3: Decide Who Will Be Attending Your Home Inspection

• Remember your home inspection is not a showing of the home, if your a first time home buyer you may want to have a relative accompany you who is more knowledgable.  The decision makers are the most important people, and really the only one who should be attending the inspection.  Their are 2 reasons why your home inspection should not be treated as a showing.  First your inspector will be trying to move thru room by room with you, and family/friends tend to distract the buyer from the important process that is going on with other less important cosmetic items in the house.  The 2nd reason is really very simple, you will be living in this home and doing the work - not them, I abide by this same rule during the home inspection although I am their by opinion on the priority of importance of things to myself.  

Step 4: Reviewing The List Of Items From The Home Inspection 

• You will have 3 different options after your home inspection: Option 1: Come up with a list of all items to be fixed, big or small and attempt to have them fixed or given a credit.  This is rarely recommended but price plays a large part if your paying top dollar you will/should expect a big more.  Option 2: Come up with a list of structural/safety items that need to be fixed or credited for.  This is normally what is expected, remember certain things will be required of the sellers for any buyer so it will be their responsibility.  Option 3: Take the home as is and continue with the purchase, this is most common with cash deals or homes priced significantly under market value because the sellers have already made large credits on the price prior to the home inspection.

My best advice to buyers is to remember that every home will have recommendations of things that should be or need to be done.  What you choose is acceptable is entirely up to you, but remember be reasonable at some point you will be selling a home too ! The best way to make it thru a real estate transaction is by being fair and honest with everyone involved !  

Why Should I Use A Real Estate Attorney ?

There are a lot of important decisions that come with any real estate transaction, after you decide on a real estate agent next you should begin looking into real estate attorneys.

Notice that I did not say "attorney", there is a saying and it is "You can only do one job well" and that goes for attorneys as well! Their are many areas of law that an attorney can go into divorce, elder law, criminal, family ect. for any real estate transaction you want to use a real estate attorney.

There are 3 circumstances that you absolutely, positively must use a real estate attorney:

• Cash Deals: These deals can be tricky because they have very specific terms as far as what is being represented and your closing date.  The perk of these deals are that they move very quickly so you will want to make sure your attorney moves at the same pace, which only a real estate attorney will understand.  

• Short Sale/Foreclosure: Banks are hard to deal with, and in this case it is who you are not only buying your house from, but it also who is financing your loan.  There must be a direct line of communication to all parties, in a timely manner and with someone who is well versed in what is or is not to be expected.  

• Estate Sales: This is where it gets tricky because there is usually more than one seller, it usually involves family members who may not be aware of what the condition of the house is and what was not legally or not.  There are potential title complications from how the home is deeded or how many beneficiaries there might be.  You will want to have the real estate attorney also have open communication with the attorney who did the estate filing as well.  

I happen to be very lucky and work for a company that our clients experience is top priority.  We have had our clients refer us the attorneys that they felt gave them the best representation in their transactions.  Our company also knows that keeping the agents up to date and informed is also important so we have attorneys come in to keep us educated and answers any question we may have, which of course helps us better represent our clients.

There are of course plenty of real estate transactions that have not involved a real estate attorney, and have gone to closing with no issues.  In my opinion whether your buying or selling it is an important process and you would want it to go as smoothly as possible, so using a real estate attorney will be your best option.

Here is an example of what could happen if a real estate attorney was not involved:

Buyer and Seller agree on the price, and conditions of the home and contracts are sent out:

1. The agreement was the home would close 45 days from contract signing, and the home inspection did not show any structural or safety issues.  
2. Buyers attorney receives contracts and makes the following changes, closing date has been changed to 60 days - a heater is required in the den/family room - down payment has been reduced from $30,000 to $10,000 - termite treatment is required.  
3. Sellers attorney receives this information, and the deal comes to a stand still because of the extreme changes.  

Now if your not using a real estate attorney this can very quickly end the deal, these seems very extreme but the most important reason a real estate attorney is needed for this is because: 

•  The real estate attorney would have been aware that you receive a standard 30 day commitment, with the additional 15 days is standard.  Attorneys will be willing to provide extensions if need be after the fact.  
• The real estate attorney would also be aware that only "live termites" are required to be taken care of, or if their is extensive damage that has caused structural damage to the home.  
• The real estate attorney would have been aware that the den/family room was a converted garage in which no heat is present or required, as long as the garage conversion was done legally.  
• Down payment amount could also change the loan amount, a real estate attorney would be aware of the change in financing and the possible stricter restrictions of the lender.  
• Lastly but most importantly if both attorneys had been real estate attorneys, they would have spoken to both the listing agent and buyers agent before adding or removing anything from contracts so they would have all the information available to them ! 

What A Buyers Market Really Means !

The spring selling season is coming upon us and it is coming sooner than most homeowners may think, we have already had a rush of new buyers begin their search!  There are some very important things you should know as a homeowner to sell your home in this market, and buyers should be aware of the realities of what it means to purchase a home in today's market! 

Let's start of by explaining exactly what causes a buyers market. 

• Large Inventory Of Homes On The Market
• Homes Taking Longer To Sell 
• Smaller Pool Of Buyers  

Important Information For Buyers 

You can get a “steal” on every home on the market

Let’s me just take a minute and clarify what I mean by “steal”.

If a home is listed for $250,000, is in move in condition with no liens, offering the homeowner $180,000 will do nothing but insult them.   Always be realistic when you put in your offer, pick your Realtors brain find out what the value of the home actually is, and put in an offer based on that information.   

Now if the home is a short sale, than a low offer may still get you the home, but remember the current homeowner has the “right of first refusal”, they will be trusting their agent to guide them that the offer reasonable.    

There are times where you can get a home for a “steal”, and that is with a foreclosure. Many of these homes have been sitting, and require work before they can even be moved into, in some cases they might be missing heating and plumbing. The banks have to recognize they can’t expect full market value.

A foreclosure sale is not for everyone, I usually find that it is easier to get my buyers into the ones that were already bought, renovated, and re-listed by investors. 

The buyer looking at the home decides what the value of the home is. 

A homes value is actually decided by the home buyers that have purchased in the previous 6 months.  You as the prospective buyer will actually be deciding the value of the neighboring homes for the next 6 months worth of buyers that buy a home AFTER you!

Another common misconception is that the house is worth the same as the neighbors!  This again is about the value of your home.  If your neighbors house is comparable to your home, than it might, but even than it will only be usable if it is sold in the time table that works to your advantage.


I can find a better home, and it will be cheaper prices are still dropping! 


I always tell my buyers, if you find a house and you fall in love with it don't miss out on it! I will tell you if the home is overpriced or not, but if the home is really a great value it will not last! Don't lose a home that you love, for a house that you aren't sure it exists!

Important Information For Buyers 

You can sell your house quicker without a Realtor or I can use a discount brokerage to sell my home.  

The most common answer I hear when I ask someone why they chose to sell their home without the assistance of a Realtor, is they think the buyers will see it as a "value" that they don't have to pay "extra" for a home.  Now I am not saying that it is never happened, but it is not very often that a home sells without the help of Realtors, especially here in Suffolk County.  

The very first thing a homeowner should take into consideration is that most buyers have a "Buyer Broker" which means they have a Realtor that they will need to pay, because they will still be doing their job if they buy your home.  Now what you thought would make your home seem like a value will now mean extra money they will need to pay to buy your home.  

Now I have written countless blogs on staging, photography, virtual tours, home warranty, and really usingtechnology to get your home sold. The reason I constantly reiterate this information is because it really is what will get your home sold.  

With the cost of not only doing these things, but spending the time to do them properly is usually a much harder undertaking than most homeowners expect it to be.  When you hire a Realtor, it is important to remember you are the boss! The other common reason I hear is they had a bad experience during a previous time they listed their house.  I reference this in another blog, about what you should be asking the potential Realtors who want to list your home.  

Always remember you want to list your home aggressively the first time it is on the market, that is what will set your house apart.  You need to be sure your home is priced right, it is advertised everywhere, it is easy to show, and you have a reputable company representing you! That is the way to sell your house in a buyers market! 

I am only going to list my home for 3 months, this way my Realtor works harder! 

Unfortunately this is the one misconception that is completely off base, the market does not allow for a home to be sold within 3 months when the average time to sell a home is 6 months to a year! The best analogy I can use is this: If I told you to go to Florida on 1 tank of gas, and you knew it would take 2 tanks, would you go? Market conditions is what you should be basing your decision on, again I wrote a blog specifically on how long you should list your home for.

I understand that as a homeowner you don't want to be "stuck" with a Realtor or a company that is not doing what you may want them to, but again remember YOUR ARE THE BOSS! My company has a sellers services guarantee that if we are not doing our job 110% you have the right to withdraw your listing from our company.

My home isn't getting offers, because banks just aren't lending! 


Banks are absolutely lending money! They didn't lower their interest rates because they wanted to prevent buyers from getting a mortgage! Coldwell Banker Mortgage Company can work with a credit score as low as 615, and I work with other mortgage companies that only require a 625 credit score! Down payment requirements are as low as 3.5%, compared to what many people may think is still 20%.  The key to knowing if someone is a qualified buyer is to make sure their pre-approval are thru a mortgage company who puts their pre-approvals thru underwriting!

If you are interested in seeing exactly how many homes were sold be sure to take a look at some wonderful charts provided by my managing broker on his website The Real Estate Guru.


I hope this helps clears up some of the myths & questions that go along with a "Buyers Market", if you have any questions feel free to email me! 

What Happens After Your Offer Is Accepted

You have successfully gotten an accepted offer it may have been a quick simple negotiation or it may have been a bit of back and forth, but either way you have officially gotten passed one of the biggest parts of the home buying process !

Now you must know and any reputable Realtor will tell you that just because your offer is accepted, it does not mean that it will stop being shown so you must move quickly thru the next few steps to secure that home !! It is common that anyone else who views the home will be told that their is a first accepted offer, they can still place offers which will be presented to the homeowner.  Lower offers will be held as "back up" offers, but their is always a chance someone will outbid you and their offer may have terms that the owner may prefer.  I will usually recommend to my sellers to stay with the first offer, mainly because sometimes they may have outbid their first buyer to get in, and could drive the price down with concessions or changes.

That is the reason why time is of the essence so your going to want to get things done as quickly as you possibly can, this is not to rush the sellers but to show them that you are serious !! 

Step 1 - Sales Agreement & Attorney Review

This is a very standard form and is very important to your purchase, this is really sometimes the first step, but if you have had to negotiate and make changes to your original offer you will want to fill out a new updated one to send over to the attorneys.  The buyer and the seller will fill this out independently and receive a copy.  You attorney will review this document normally without any changes, because the contract will have the specifics credits or add-ons.

Step 2 - Call Your Mortgage Broker

Your realtor should have already developed a relationship with your mortgage broker to be sure this is a home that you can afford with the sales price/taxes/insurance.  If they have not spoken to them they shouldn't wait any longer to get that relationship going.  I personally like to have a direct line of communication the moment they give you the okay to go out and start looking.

Sometimes the seller will want you to get a 2nd mortgage pre-approval, this is not unusual in my business, because I work for a company who has their own mortgage company.  A seller can not however tell you who to get a mortgage with, they can only request a pre-approval thru a specific company.

This is not to say that using a mortgage broker your agent has not yet worked with will cause a problem,  I have had many deals go perfectly with mortgage companies I had not previously worked with.

Step 3 - Home Inspection

Many companies will have a preferred list of home inspectors, if you already have someone.  You want to have the home inspection as soon as possible, even with a first accepted offer.  A home inspector should check for of course the obvious red flags: mold, mildew, termite damage, but you also want them to check to make sure of some other things you may not think of.  Most will check to make sure that the hot water, actually gets hot, in older home this will take a bit longer but these are things that once you move in can become important.  They will also check things in the attics, basements and crawlspaces.

Homes that are remodeled it usually only takes about an hour for a full inspection, and others usually take about 2 hours. You will get a full copy of the report, and they will talk to you about it before they leave the property.

Step 4 - Sign The Contracts

Now depending on how your home inspection went sometimes you will be just going in to sign contracts with no changes, but sometimes there will have been more changes because of things that came up during your home inspection.  Remember your offer is still accepted, but now you are going to be changing the terms.

I can not stress what I am going to say enough, and it is what I say to not only buyers but to sellers too, BE REASONABLE!

I can understand a seller does not want to have to do work to the home they are moving out of, but you can't expect a buyer to just ignore problems that may have arose during a home inspection.  Try and work with the buyer, because no matter who the buyer is they WILL have a home inspection and you will more than likely be in the same position.

That being said sometimes buyers should be reasonable, don't let fear of losing the house force you to overlook a major problem but don't let a little problem cause you to loose your dream home either.

Step 5 - Bank Appraisal

This again is where a good Realtor is key, because the bank is going to come in and make sure the house is worth the money that in reality the bank is putting up for it.

This is what in today's market really is an asset to the buyer, because banks are not easily giving out money the way they did 10 years ago when the prices were really at its highest point.  The banks are very careful that the home is worth what your paying for it.  

I personally try and make the bank appraisers life as easy as possible, I bring my comps to the appraisal now we can't force them to use those specifically but most appraisers will appreciate it and many times end up using them. This depends on the bank and the appraiser but if they feel  the realtor has done there due diligence to make sure the buyers are not over paying, than they will use them.

Step 6  - THE HOME STRETCH

Your ready to close, you will have not much else to do till about a month before your closing !

I will write another blog outlining the things you will need to get in order prior to your closing separate from this one, and attach the link!

Cash Deals In Today's Market

I thought it was about time I took some time and wrote a blog about cash deals in today's market.  Interest rates are at a all time low still, but some buyers are still opting to buy their homes in cash figuring it will earn them interest quicker invested in a property than sitting in the bank.  If you are the buyer who has the ability to buy in cash you do have the upper hand on some other buyers, but not all.  This blog is for both the buyers, and for sellers to help both understand how a cash deal works, benefits of accepting a cash offer, but also how/why a seller may not be able to accept a cash offer.  

Presenting A Cash Offer

There are certain steps to presenting a cash offer that you may not ordinarily have to do, normally when you present an offer with a mortgage you would be presenting the offer with you mortgage pre-approval.  When you are doing a cash deal you will need to provide "Proof of Funds", this must be  recent, if your proof is 3 months or older you must get a new one.  Generally you can contact an agent at your bank and ask them to provide you with a letter, or even simply a copy of a recent bank statement with your bank account information hidden with only your name and available balance displayed.  

If you are purchasing your new home, with the cash from the sale of your current home than you must let this be known in the very beginning of negotiating.  Before you can place an offer, just like any other buyer you should be under contract on your current home.  

Benefits Of Cash Offers 

A seller may or may not prefer a cash offer because of the benefits it presents to them.  Not all homeowners are in a position to accept a lower cash offer because they may have a certain amount they need to "clear" on their home.  There are benefits that can make taking a lower cash offer vs a higher offer with a mortgage appealing to a homeowner.  

• No Bank Appraisals - This is pretty simple to understand, you do not need to worry at all about whether or not your home appraises because there is no bank involved which can sometimes be an obstacle.  

• No Loan Funding Contingencies - Whenever someone obtains a mortgage there are certain paperwork the bank will require from them, if they can't meet those requirements they will not be able to obtain the mortgage.  This can sometimes be avoided by using a good mortgage company but their are no guarantees, financial circumstances can change quickly and unexpectedly. 

• Home Inspections - Every buyer is entitled to a home inspection, but generally with cash deals the home is sold "as is", which means there will be no repairs or credits done to the home.   This is because generally homeowners are already accepting a lesser offer because of it being cash.  

• Faster Closing - It generally takes 60-90 days to go to closing on a home, the time frame is usually decided by how quickly a buyer can get the mortgage commitment, and close.  With no bank comes the benefit of being able to close at a time that is good for both the seller and the buyer.  

I have many homeowners ask me when is the best time to accept a cash offer vs waiting for a buyer with a mortgage pre-approval, unfortunately there is no set criteria but I can give you some pointers on when or why you should consider it.  

• If you need to move or relocate quickly, no one likes the idea of leaving there home vacant because of the risks and costs associated with it.  
• If you have your eye on another home that is on the market the benefit of having your home go to contract quickly will in turn mean you can put in a stronger offer for your new home.
• If the home is an estate sale it may need work, or you may not know the full history like the actually homeowner would.  Homes that need work will generally take longer to sell, which is why a cash offer allows you to move the home quickly reducing costs, as well as risks while giving you less responsibility after your home inspection report comes back.  

Always remember your Realtor should be advising you whether or not a cash deal is a good option for you, this goes for both buyers and sellers.  If you are the buyer placing a cash offer, my best advice is to make sure your Buyer Broker has helped you come up with a fair offer, remember there is a difference between a cash offer and a low offer ! For homeowners that have received a cash offer the process of deciding whether to accept it, or perhaps counter all depends on your home, situation, and the market for your immediate area. Your Realtor will be able to pull what cash sales have closed to help you make an educated decision about what is a fair offer for your home!