Cash vs a bond offer
Category News
Cash is king and there should be no doubt that a cash offer always trumps an offer that comes with conditions such as securing a bond and/or selling another property.
There are times when a seller is faced with the choice as to whether to accept the higher offer which is subject to a bond or other suspensive conditions such as having to first sell a property, or whether to accept the cash, but lower priced offer.
The advantage of a cash offer, even if it is at a lower price, is that it can be a quick sale and thus very attractive to the seller, especially if there is some urgency to sell.
By turning down the cash offer, you have no guarantee that it will still be available or that another offer could be forthcoming should the bond offer fall through or the buyer not be able to first sell their property.
Securing a mortgage bond can take time and it may come with its own set of conditions which the buyer would need to fulfil.
When it comes to the buyer first having to sell another property could add further complexity to the deal, especially during a down-market when properties are slow to sell.
The advantage of taking the cash offer also lies in your ability to then move on to the next property that you might have your eye on and you can already be enjoying your new property rather than having to wait around for a bond to be secured or another property to be sold.
If the price is reasonable, then a cash offer should always be given serious consideration.
Author: Seeff
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