Buying A House With Cash

Rising interest rates. Record-low inventory. Prices estimated to rise 11%. Multiple offer situations. The housing market is difficult for buyers in 2022. The best way to win the home you love is to come to the table with cash—which is 3x more likely to win. We know that all cash sounds out of reach for many buyers, but Ribbon is here to help make it a reality. Here’s what you need to know about buying a house with cash and what we can do together.

 

It can eliminate appraisal contingencies.

 

Buyers who are getting their financing through a bank or a lender will need an appraisal. This step reduces the risk for the financier. It also helps them understand the value of the home you’re looking at, so they feel confident in the mortgage backing they’re offering. Unfortunately, this contingency is one of the major reasons that home sales can fall through. If a home is under appraised, the lender can pass on financing which leaves the buyer in the lurch.

 

In a strong sellers market, buying a house with cash can eliminate this contingency. This can be beneficial for buyers who are prone to discrimination like Black and/or LGBTIA+ buyers. In 2021, the appraisal contingency was the most common contingency waived—at 28%.

 

It can eliminate inspection contingencies.

 

Inspection contingencies can lead to expensive repairs for sellers or deals falling through all together. This is especially true if a home is a fixer-upper and needs significant upgrades. Cash buyers are more likely to take a home “as is,” so sellers prefer them. While this can lead to unexpected expenses for buyers, it may be beneficial to cover the cost when the market is as hot as it is in 2022. It’s become such a popular choice that in 2021 the number of buyers forgoing this contingency was up 12% in 2021 making it the second most common contingency waived.

 

It can eliminate the buy before you sell contingency.

 

Some lenders won’t allow you to buy a new home until you sell your current home. Getting this timeline exactly right can be a nightmare—especially if you’re moving out of state. Buying a house with cash will eliminate this step, and if you use RibbonCash you’ll be able to move into your new home immediately so you won’t have to live at a hotel or with family or friends while you wait for your home to sell.

 

It creates a faster and more secure deal.

 

Cash means a secure timeline. Cash means less paperwork. Cash means fewer people in the mix. You can see why it’s preferred, no?

 

How to buy a house with cash, using Ribbon

Ribbon helps buyers turn their offers into all cash so they’re 3x more likely to win. Here’s how it works. First, Ribbon purchases the home on behalf of the buyer for all cash. This gives buyers more time to secure financing from a lender or bank. Ribbon then sells the home back at the exact same purchase price. A win-win. To speak with an expert about how RibbonCash can help, book a free consultation.