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Virtual real estate buyers may offer cash or contingency waivers

| Jun 22, 2021 | Real Estate

Technology can make buying or selling a home easier through internet listings and virtual open house tours. Data provided on FloridaRealtors.org notes that 44% of homebuyers in 2020 initiated their property search online. Photos, videos, maps and detailed information related to a listing can streamline the buying-and-selling process for both parties. 

Without the internet, potential homeowners typically spend 10 weeks searching for a property and look at nine homes. Those who searched online, however, only looked at four properties. On average, homes listed over the internet sold after four weeks. 

Virtual tours and offers may lead to quick cash transactions

The South Florida Sun-Sentinel reports that housing prices increased from a surge of out-of-state buyers relocating to the Sunshine State. Newcomers can review properties online through 3D virtual tours and then make an offer without visiting homes in person. 

Because of increased competition between buyers over fewer available homes, some may decide to forgo contingencies. A purchase offer, for example, may include relinquishing an appraisal, an inspection or a title search. If a potential homeowner can pay cash, the sale does not require the traditional steps that a bank performs to approve a mortgage. 

A lack of contingencies may fail to disclose serious issues

Because an all-cash real estate transaction may not involve contingencies, an offer may include waiving a title search. As noted by Millionacres.com, a title contingency allows a buyer to back out of a transaction if a search uncovers possible liens or ownership rights against the property. Failing to perform a title search may lead to a future dispute regarding the transaction’s legitimacy. 

When offering to forgo contingencies, buyers and sellers may require a separate agreement to prevent a potentially disruptive legal action. Some cash sales could become complicated depending on a property’s condition and if an unknown ownership history exists.