You have listed your home for sale, and you receive that call from your Scottsdale Realtor.
“We have an offer!” “It’s a cash offer.”
You are gleaming with excitement. You are ecstatic. Someone with a boat full of cash is buying your home. You have every reason to be excited….but… “But what you are asking yourself right now?”
Well, it is awesome to receive an offer. Even better to receive a cash offer. But is it really cash? Did you or your Scottsdale Realtor check?
Over the years, people..including Realtors have confused cash to well..anything else. Cash is cash. Cash somewhere that you have a record of. There is no other form of cash.
If you are a Realtor and representing a Buyer who writes an all cash offer but is using a line of credit (HELOC)-guess what, that isn’t cash. It is a line of credit. Why does it matter?
What if the lending institution pulls your line at the last moment?
If I am your agent, I am writing up the offer as “cash or line of credit funds.” If for some reason your line of credit funds goes away, you are obligated to proceed with your Scottsdale home purchase…or be at risk of losing your earnest funds. Why? Because either you weren’t clear with your Realtor as to what the source was…or your Realtor interpreted non-cash as cash.
And even more importantly, if you are the listing Realtor, you should be checking as to what it actually is. Let me ask you this-what’s better cash or credit funds? You aren’t paying your Realtor to be a paperwork pusher. You are paying them for your expert advice.
And before anyone gets all technical on me-I have seen and heard of buyers losing their earnest money because of this. So, yes, it has happened.
So to recap-when you are writing an offer for your client-check what the source of funds is, and write the offer accordingly.
If you are representing your Scottsdale homeowner, check the actual source of funds to make sure it is what they say it is.
Need expert advice? Looking to sell your Scottsdale home? Call me today, or fill out the form below.