When you're selling your home, the offer price is important—but how the buyer plans to pay for it can be just as critical. Not all buyers are financially ready to close a deal, and understanding the difference between various types of buyers can save you time, stress, and uncertainty.Here’s a breakdown of the most common buyer types and what they mean for your home sale:
Cash Buyers
These are the unicorns of real estate: buyers who have the full purchase price in the bank and don’t require a mortgage.- Pros: No financing risk, fewer conditions, and usually a faster closing.
- What to watch for: Always ask for proof of funds (like a bank statement or letter from a financial advisor).
Pre-Approved Buyers
These buyers have gone through the full mortgage approval process with a lender. They’ve submitted documents, had their credit reviewed, and are essentially approved for a loan—pending only the property appraisal.- Pros: Low risk. If financing is a condition in the offer, it’s likely a formality.
- What to watch for: Ask for a copy of the pre-approval letter. This shows the lender has done their due diligence.
Pre-Qualified Buyers
These buyers have spoken with a lender and shared general financial info like income and debts—but they haven’t submitted documents or completed a credit check.- Pros: They’re starting the process, which is better than nothing.
- What to watch for: Pre-qualification is not a commitment to lend. A full approval could be delayed or even denied.
