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Answers (8)
- Song San, "song san"
- Contributions:85
I had a great discussion with my networking group yesterday about this topic. As a buyer making an all-cash offer would put you in the top of the list because the transaction could be completed faster and skip the headaches from the bank loan process.
As Nealadler recommend, as a buyer be very careful of offering all-cash. I known people who cashed out from their 401K and life insurance to get the money to put down the all-cash offer.
I am in the process of buying my own home and many times beat off the all-cash offers because I usually offer 100% listed price, 30-40% down, and great FICO. All the sellers care is that they would get the most from me instead of the lower cash offer.
As Nealadler recommend, as a buyer be very careful of offering all-cash. I known people who cashed out from their 401K and life insurance to get the money to put down the all-cash offer.
I am in the process of buying my own home and many times beat off the all-cash offers because I usually offer 100% listed price, 30-40% down, and great FICO. All the sellers care is that they would get the most from me instead of the lower cash offer.
- Christina Morabito, "ChristinaCapeCoral"
- Contributions:27
Cash is King in this market as well.
- nealadler
- Contributions:199
Cash offers are always attractive to the seller. However, as an agent listing foreclosures I get 'lowball' cash offers all the time and buyer's agents wonder why the offer isn't taken. The bottom line is what is going to net the seller the most. If I have a cash offer that's 10% less then the listed price and I have a full price offer with a 20% down buyer, great credit scores, and a full underwritten loan approval I'd take the financed deal. Each situation is different. However if the cash offer is a few percent less than the financed deal, the cash offer may be better. On the other hand as a buyer I wouldn't recommend paying all cash unless you have a lot of money or the property is not in condition conducive to getting financing.
- Anne Cantrell, "Bellingham Expert"
- Contributions:95
There is a premium advantage with a cash offer. Of course you lose that aadvantage if all the competing offers are also cash. Generally speaking, Sellers will concede to a lower price for an all cash transaction. With a conventional financing contingency, there are many challenges to complete the transaction such as underwriting snags, appraisal problems, and timing issues. Every market is different, but in most markets, an all cash offer could garner 10% discount over conventional offer. That's a wide sweep answer , but if you have a more specific question, we could zero in on more detail . I hope that helps.
- CulverCityRealtor
- Contributions:459
Cash is King in this market
- Frank Becerra, "Las Vegas agent"
- Contributions:84
Cash offers take priority over financing unless you are in competition with others and they think they can get more from a financed. If you are looking at homes under 100,000 40% are cash so there isn't much advantage, and if you are looking at homes below 40, they are all cash, no advantage.
read this blog before you offer.
read this blog before you offer.
- Greg Cook, "Greg Cook"
- Contributions:119
Depends on the terms of the offer. Generally cash offers are given priority because they close and the seller doesn't have to worry about the buyer qualifying for financing. Many homebuyers who need financing also ask the seller to pay part of their closing costs, in a cash sale that is probably not an issue.
If you are offering substantially below asking price, it could be rejected or approved based on what the seller will net.
Good Luck!
If you are offering substantially below asking price, it could be rejected or approved based on what the seller will net.
Good Luck!
- wetdawgs
- Contributions:26945
If the offer is all cash and one has competitors, it may mean yours is the accepted offer. it doesn't make a difference for price. The buyer will have lower closing costs.
Does it make a difference if the offer is all cash. No finance?
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