A cash offer is an all-cash bid, meaning a buyer wants to purchase the property without a mortgage loan or other financing. These offers are often more attractive to sellers, as they mean no buyer financing fall-through risk and, usually, a faster closing time.
Most financed transactions in Hawaii take a minimum of 30-days and often 45 to 60-days to close. In comparison, a cash transaction could potentially close within a couple of weeks, so long as escrow has time to prepare documents for proper recording of the deed.
For most buyers, all-cash offers are not a viable option. However, since cash offers will often times be for less than the seller’s asking price – there’s still a chance for a non-cash buyer to woo the seller with an attractive ‘financed offer’. Purchase offers that include a pre-approval letter and proof of funds, combined with a well-written cover letter can carry a lot of weight with the seller.