What is a “cash deal” in a residential real estate transaction? Many people think the definition requires the Buyer to pay cash in order to close the transaction. Because of this popular misconception, Sellers are often reluctant to allow the Buyer’s appraiser to come into the home when the Buyer decides to obtain financing. The fact of the matter is that a “cash deal“ simply means that the Buyer cannot use the inability to obtain financing as a basis to cancel the contract. In fact, in the FAR/BAR AS-IS contract (the most commonly used contract), the Seller is required to allow the appraiser access to the property under Section 18 L. of the Standards For Real Estate Transaction section of the contract. Educating your Seller in advance of this often problematic situation will alleviate problems and stress down the road.
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