A cash backed offer means the buyer's offer is guaranteed by a power buyer and therefore there is no financing contingency and reduced appraisal contingency risk.
A buyer who submits a cash-backed offer is working with a mortgage lender, usually the power buyer, to fund the purchase of a property. If there is a delay or financing falls through, the power buyer steps in and purchases the home in cash on behalf of the buyer and works with the buyer after the transaction to secure a mortgage on the property.
This empowers the buyer the ability to make what is effectively a cash offer, significantly increasing the probability of the offer being accepted.
Power Buyer services enable these cash-backed offers to help home buyers provide a superior offer and get their offer accepted.
With a cash backed offer from a power buyer, the buyer can submit an offer without a financing contingency. This give the buyer an advantage because an offer without a financing contingency is more attractive and desirable to the seller.
With a cash-backed offer, the power buyer can assist the buyer in the event the appraisal comes in lower than the purchase price in the contract. The power buyer can help bridge the appraisal gap by reducing the buyer's closing costs. This increases the probability that the transaction will close successfully without significant delays.