Cash buyer ~ what specifically are the pros/cons?

We have a cash offer on our house (WAY below what we will accept). The potential buyer seems to be making a very big deal about the fact that he has cash. Can someone explain why? Sorry, this whole process is new to me.

Cash buyer ~ what specifically are the pros/cons?

Well they don't have to go through the entire hassle of getting a loan. But if its a horribly low ball offer I wouldn't take it anyway...

Re: Cash buyer ~ what specifically are the pros/cons?

There are several advantages to an all cash sale -

1) It's faster (can close within a couple of weeks of going to contract, usually, versus having to wait for a buyer to get their mortgage, which can take 1-3 months, depending on the lender);

2) There's no mortgage contingency in the contract (a standard contractual clause is that if the buyers can't obtain financing, they can get out of the contract without penalty, such losing their down payment), and with tight lending criteria, that's always a plus;

3) You don't have to worry about the appraisal, if you think there's a chance the house may not appraise for the contract price; and

4) There's no hassle from the bank re: things like missing COs.

So yes, a cash offer is desirable, although many cash buyers think they can "steal" a house or make very low-ball offers, because it's a cash offer. In reality, the source of funds probably doesn't matter to you as much as the amount, as long as you make sure the buyer's preapproval is solid. Your listing agent should verify this for you. Likewise, with a cash offer, you should also ask to see proof of funds to make sure that the buyer does indeed have the cash available to him to buy the house.