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Due diligence trumps cash when considering offers to purchase

If you're selling property, you've probably heard about the face-value advantages of cash offers. There's no nail-biting wait to see if a home loan application will be successful, and the transaction can move forward quickly - or so the assumption goes. However, while cash offers are often seen as the gold standard, they aren't always the most secure or straightforward option. Jawitz Properties shares insights from our Head of Sales at Jawitz Properties Southern Suburbs, Storm MacLennan, and unpacks this statement. In this article, we'll explain everything you need to know about different offers and why your property practitioner's due diligence is actually the most important factor.

Cash vs bond-linked offers: what really matters

A buyer who has been prequalified through a bank or bond originator often offers greater certainty than a would-be cash buyer who has merely assured the availability of funds. Cash offers can be an excellent option as they often tend to be faster and can eliminate the uncertainty of bond approval. However, they require careful vetting. Until those funds are transferred into a trust account, they cannot be fully verified.

MacLennan shares, "One of the strongest indicators of buyer commitment is the deposit the buyers are willing to put down. A meaningful deposit demonstrates financial capacity and intent, and in many cases provides more certainty than a verbal assurance of cash."

The power of a deposit

A substantial deposit, paid upon acceptance of the agreement of sale, can often provide more security than a verbal cash offer. As ooba aptly explains: "Paying a deposit helps to ensure that both parties honour the agreement of the offer to purchase."

For buyers, a deposit reduces monthly repayments, but for sellers, it's a strong show of commitment, which in turn is a strong indicator that the buyer is serious and financially capable.

The role of prequalification

Many buyers are savvy enough to obtain pre-qualification and approval in principle before making an offer. Most are well-informed about their financial standing and the bond approval process has become increasingly streamlined - often being finalised within just a few days.

At the end of the day, whether the property is sold via a bond or in cash, payment is only made upon transfer. As long as the buyer is properly vetted, whether through verified proof of cash funds or prequalification by a bank or bond originator, there's no major difference for the seller in terms of financial outcome.

Why your property practitioner matters

A knowledgeable and diligent practitioner will conduct proper due diligence on any would-be buyer before an offer is submitted. If you're working with someone you trust, peace of mind should be part of every offer you receive.

MacLennan highlights, "We continue to train our agents to ask the right questions, verify funds and balance speed of sale with the security of outcome. Ultimately, it's not just about cash versus bond; it's about having a trusted professional by your side who safeguards the process and ensures the best possible result for the seller."

Received a cash offer from a foreign buyer? Things to think about.

While a cash offer from an overseas buyer may seem appealing, especially given the value of currencies like the euro and the pound, such transactions will involve extra administrative steps. For a start, exchange control approval may be required if funds are being repatriated later. Over and above this, FICA regulations mean that proof of funds - as well as proof of the source of these funds - is required. For example, the funds could come from an investment, inheritance or savings. This information is required for compliance with anti-money-laundering laws.

MacLennan contributes, "Equally important, foreign cash offers, while appealing on paper, require careful handling due to exchange control and compliance considerations. This is where the guidance of a professional property practitioner becomes indispensable."

Final thought to leave with you - it's not just about the money

Cash isn't king when it comes to selling your property - having a trustable and reliable property practitioner is. Get in touch with the team from Jawitz Properties and sell your home with confidence.


23 Sep 2025
Author Jawitz Properties
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