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The buyer can just waive the financing contingency. To the seller that's almost the same as making a cash offer.
by eli 6y ago
The buyer can just waive the financing contingency. To the seller that's almost the same as making a cash offer.
- nrmitchi 6y agoI mean, not really. The financing contingency means that if your financing falls through, you get your earnest money back. Assuming a 500k purchase with 1% earnest money, waiving the financing contingency means that the seller receives at least 5k. Even with a financing contingency waived, if the buyer has 100k, and their financing falls through, there is no way for them to magically make 400k appear for the sale to happen. If you are assuming that the buyer has the full purchase price in cash anyways, and are only taking a mortgage because rates are so low, then ya, your point stands (waiving financing contingency along with proof of funds). But lets not pretend that having cash to cover the full price of the property is the common situation.
- foogazi 6y agoHigher risk for the buyer if financing falla through Also not a guarantee for the seller - but they’ll get to keep the deposit