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Replies (11)
- wetdawgs
- Contributions:26790
If a seller has a choice of buyers, the buyer who is bringing all cash to the deal may win the deal all other things being equal because then the seller is not worried about the deal falling through because of a finance contingency.
however, does it give any negotiating power in price? Rarely if ever.
- apompa
- Contributions:23
"does it give any negotiating power in price? Rarely if ever."
It did for my wife and I. We where the lowest offer out of multi offers. Our offer was 18% off the listed price. 10 day escrow.
- NTETS, "Mr Caveat"
- Contributions:6436
either way the first 20% you lose will be your money off the top. finance as much as possible and invest in something... stay away from bonds, even govt issue.
reserve the right to be flexible, reserve the right to pay off your home when taking on ALL the risk yourself makes sense.
- Rachel Sartain, "Rachel Sartain"
- Contributions:408
For an investment property I would definitely recommend financing with 20% down. This will leverage your money so that you can purchase other investment properties instead of just one property. If you have the cash to purchase one home you probably could purchase 4 homes with 20% down.
This is the route I have recently taken. By putting 20% down on 2 homes I have positive cash flow each month of $700. Not to mention these properties were really good buys with 25-30K appreciation at the time of purchase.
Hope this helps
This is the route I have recently taken. By putting 20% down on 2 homes I have positive cash flow each month of $700. Not to mention these properties were really good buys with 25-30K appreciation at the time of purchase.
Hope this helps
- Jeff Konstant, "jkonstant"
- Contributions:1970
If you want to present cash to put your offer in a stronger position you can always make an offer with 80% financing up front and additional language that clearly lets the seller know that obtaining the financing is not a contingency. If done right it gives you flexibility in the event you need it without affecting the strength of your offer.
- Tiffany Bond, "TiffanyBond"
- Contributions:3010
In this market I think you can make a strong case for an all cash offer getting a better price. However, if it doesn't overextend you, investing the same money in multiple investment properties like Rachel suggested is probably a better end game.
- Michinaga
- Contributions:143
JKonstant, this is what I'm going for the home I'm buying. I made an offer for about 7% less than the list price, with no contingency, because I was paying cash. They took the offer the next day.
- Tiffany Bond, "TiffanyBond"
- Contributions:3010
You can also finance after you purchase the house too if you want a strong cash offer, but to keep cash on hand for future purchases. It lets you hold out for the best terms without fear of losing the house and still keeping cash leverage.
You can write a cash offer, verify the funds to the seller to make your offer quite strong, and get a loan before you close. The offer says you are willing to buy it cash, it doesn't prevent you from getting a loan if you choose.
- Rieselman
- Contributions:1
You should get a property for 25 to 40 percent less if you pay cash period. Don't let anyone tell you different they are lying. The only people who don't want to get cash are agents and banks who get paid more when you borrow. Buy direct from the seller for cash and cut the scumbags out of the deal !!!
- sunnyview
- Contributions:25127
Buying direct from the seller for cash sounds good, but in this market that might mean paying more than the house was worth if the private owner is underwater.
Most banks/lenders will not allow individual buyers to negotiate without an agent either theirs or the listing agent on their REO's or short sales. I'm not saying that's fair or right, but that's how it is right now. Short of buying properties in a bulk portfolio most small buyers will need an agent's name on the line when the submit the contract to the lender.
Most banks/lenders will not allow individual buyers to negotiate without an agent either theirs or the listing agent on their REO's or short sales. I'm not saying that's fair or right, but that's how it is right now. Short of buying properties in a bulk portfolio most small buyers will need an agent's name on the line when the submit the contract to the lender.
Buying Home with Cash vs. Financed
Will I find a better deal paying all out cash? If so, how much bargaining power does cash give you? Cash is king ... so I should try use less?
Thanks for the help.
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