Re:Making sense of what’s going on in the housing market
by lolinder on Wednesday April 21, 2021 @01:48PM
(#26893027)
Two things:
1. There's no financing to approve. Pre-approvals fall through all the time, and the seller knows that. They'll take cash to avoid having to start over.
2. Appraisals are coming in low right now because prices are changing so quickly that finding good comps is hard, and lenders cannot or will not loan for more than the appraised value. This could lead to the seller having to either start over or accept a lower amount. A cash offer is usually not contingent on an appraisal.
1. There's no financing to approve. Pre-approvals fall through all the time, and the seller knows that. They'll take cash to avoid having to start over.
2. Appraisals are coming in low right now because prices are changing so quickly that finding good comps is hard, and lenders cannot or will not loan for more than the appraised value. This could lead to the seller having to either start over or accept a lower amount. A cash offer is usually not contingent on an appraisal.