Some Suggestion Cash for House in Colorado

Cash for House in Colorado. This is Why Someone Will Pay Cash For you Denver, CO home

We tell you why someone will pay cash for your house.

We also explain how the cash for houses or ‘all-cash offer’ works in when buying or selling  a home in Colorado?

Q: I looked online and found companies that will buy my house for cash and I wanted to know why a company or real estate investor would pay cash for house in Denver?

There are many reasons why a company pays cash for house in Denver and buys house for cash anywhere in Colorado.

We will give ou some summary points to why someone would pay cash for your Colorado home. Beyond this be sure to check out this great article from a Denver, CO real estate investor who gives you valuable insight to all the many reasons for why they will purchase Colorado houses for cash today, tomorrow and anytime.

Real estate companies, investors and people will buy your house for cash because:

  1. Buying for cash saves a ton of time
  2. Buying for cash eliminates real estate agents and there fees.
  3. Paying cash for a house will enable the buyer to buy the house as-is
  4. When someone pays cash for a house in Colorado they get to work directly with the property owner meaning there is no miscommunication.

Those are some great reasons why it makes sense for a company to pay cash for houses in Denver and in Colorado.

Q: I plan on accepting an all-cash offer on the sale of my house in Denver, CO. Is a certified bank check really the most secure means of payment other than a bag full of cash?

A: We chuckled at the idea of someone walking into a closing in Denver, CO with a bag full of cash. Maybe they’re paying for their million-dollar property in singles?

Seriously, you’ve posed an interesting question, and our answer might surprise you. Let’s start with an explanation of what makes an offer “all cash.”

Sellers in Denver, CO want to know that when they sign a contract with a buyer, the buyer will close on the purchase of the home. Buyers use the phrase “all-cash offer” to indicate they don’t need to borrow money from a lender to close on the purchase. (It doesn’t mean the buyer is coming with a bag of cash or even a bank certified check.)

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Most borrowers in Denver, CO go to a bank, mortgage banker or mortgage broker, apply for a loan to cover a portion of the purchase price, and then pay the rest (minus the good faith deposit) that’s owed with a wire transfer. Typically, the lender supplies most of the funds for the purchase of the home.

But because most buyers in Denver, CO use lender financing, most purchase agreements include a financing contingency. This contingency states that if the buyer fails to get financing for the purchase of the home by a certain date, the buyer can cancel the deal, and the seller will return any money the buyer put down.

Well, right now, we’re in one of the hottest sellers markets in Denver, CO we’ve seen in 25-plus years. There are many more buyers in Denver, CO than there are properties for sale. Most homes are being sold in bidding wars, and buyers are doing what they can to make their offers stand out in what is often a sea of bids. So, they tell the sellers they will buy in an “all-cash” transaction. This means the buyer is willing to walk away from the deal, including any cash put down for the good faith deposit, if the deal doesn’t go through for some reason, like they can’t get financing.

In some real estate markets, listing agents will ask the buyer to provide proof of funds that they can close on the purchase with the cash the buyers have in the bank. These agents are trying to make sure the cash house buyers will, in fact, close on the home and have the cash to do it.

But you need to remember most buyers in Denver, CO don’t have that much cash to close without a lender. In the end, what really matters is how much earnest money the buyer puts down as a show of good faith. If the buyer puts in an all cash offer but only puts down $1,000 in earnest money, the buyer isn’t risking much — and the seller knows that.

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But if the cash buyer in Denver, CO puts down $25,000 or $100,000, the seller knows the buyer is serious and is more likely to close. The strongest offer a buyer can make is an all-cash offer with a sizable down payment.

Let’s go back to the mythical bag of cash. Typically, buyers in Denver, CO will come to the closing with a bank check or they have already wired funds to the settlement agent or office. Whether they have a bank check or the cash has been wired ahead of time, the settlement agent takes these funds and disburses them to the seller, the attorney (if there is one), and anyone else who needs to get paid from the closing.

As an aside to cash buyers putting in cash offers, fraud is rampant in the wire transfer world. You must make sure wire transfer information is accurate, because once the funds leave your account, they end up in the recipient’s account. And, if you click on the wrong link, or send the funds to the wrong place, you could lose all of your cash.

Don’t set up a wire transfer without first double checking the account information with the settlement company. If you get an email that purports to be from the settlement or title company, call them directly to make sure you’re getting the right account number. It’s difficult to know how scammers and bad actors are able to send phishing emails to buyers who are within days of a closing, but it’s happening more frequently. Beware of any email you get that purports to give you wire transfer information for your transaction.

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