1. Financing Issues
Wait a minute you’re probably thinking. How long to close in house With cash downriver Michigan and why would you get into financing trouble if you’re buying a house with cash? Funding can still cause delays, even if it’s cash. You may not be using a loan, but you may still run into cash flow problems.
You planned to withdraw money from your account to cover a cash purchase. Suddenly you have less money than you thought. This can be a problem when using investments in general things can change quickly.
Another problem that can arise is when the buyer transfers money to the wrong account. This may delay business until the situation is investigated and resolved by the financial institutions involved. And unfortunately, in some cases, the money may not be recoverable, putting the business in complete jeopardy.
2. Problems Appear during the Inspection
One of the great benefits of cash being offered all the time is that it allows you to take the contingencies out of a business. Contingencies are clauses in real estate contracts that state certain conditions must be met before a deal closes. Real estate covenants are commonly associated with getting a mortgage because lenders tend to inspect the property before putting money down.
With cash, buyers can forgo common contingencies, making the deal smoother and faster However, a standing inspection is often used by any buyer, whether they use financing or pay cash. A contingency inspection basically states that if serious problems are encountered during the inspection, the buyer can back out of the contract.
Forgoing an inspection may seem like a great way to boost your offer and speed up the deal, but it can put you at risk and is not a tactic generally recommended by experienced realtors. All of this means: You’ll probably want an inspection and inspection standby, even if you’re paying in cash. But understand that inspections can delay the deal.
3. Third-Party Delay
Prior to 2020, a cash transaction could close in as little as 7 days, while financed home purchases took an average of approximately 45 days to close. Nowadays, cash is not as quick and painless as it used to be. The cash closing process can often take three or more weeks, depending on the availability of third-party services. You’re only as fast as the third-party services you use. Title companies, attorneys and inspectors may experience delays as they try to serve more buyers than ever
