
PAYING CASH FOR DC REAL ESTATE
Yay, you have cash to pay for your DC real estate purchase! Cash can make the difference in a multiple offer scenario and it simplifies the process for any transaction There are a few things you'll need, though. We outline what sellers and listing agents expect from a cash homebuyer in Washington DC. Read on, and be sure to reach out to get started on your purchase!
EARNEST MONEY DEPOST (EMD)
FUNDS VERIFICATION LETTER
The seller will expect a Funds Verification Letter from the buyer’s banking/financial institution confirming that available funds exist to cover the entire purchase price of the property plus closing costs at time of offer. This letter should be on the institution’s letterhead and signed by an officer of the institution (generally a Vice President or General Manager). The letter should not include hyper-personal information such as full statements of accounts or account numbers.
LENDER PRE-APPROVAL
Some sellers and listing agents may request a pre-approval from a local, reputable lender in addition to a Funds Verification Letter. They see this as a third-party verification of your self-substantiated representations. We will attempt to negotiate this.
THE ADVANTAGES OF PAYING CASH FOR DC REAL ESTATE
Cash buyers have the advantage over buyers financing their purchase in that they can close very quickly, often in as little as three to five days from date of contract, their offers do not carry appraisal contingencies, and risk of financing falling out is eliminated. For this reason, cash buyers have the upper hand in a multiple offer scenario. Cash buyers also pay lower closing costs and have more flexibility on offer price.