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Replies (9)
- Wes Black
- Contributions:509
Thinking as a seller, I would be willing to take cash as long as it was acceptable to me. With a loan, too much is out of your control. A person getting a loan may be less committed to the deal, they have to secure a loan which is not easy, inspection can cause deal to fall through, closing for cash is 14 days vs 30-45 days for a loan. It just makes sense to take an acceptable cash deal. Good luck.
- wetdawgs
- Contributions:26854
If we were selling at the moment, I would evaluate the higher offer very carefully. Is the buyer preapproved? Is the buyer asking for seller concessions with closing costs (or other)? With both offers - what are the contingencies? The bottom line - I'd go with the higher net offer with an excellent probability of closing.
- IAgentRealty
- Contributions:79
The sellers that I've encountered recently are more concerned with the highest net. An offer that doesn't include financing included doesn't guarantee that the funds will be accounted for on the day of settlement. Hard money loans and money from retirements can both take longer to acquire than a potential buyer might anticipate. Removing the home inspection contingency and buying as-is is the most effective way to get the price down; this is something I would not recommend.
- William Bierlein, "William Bierlein"
- Contributions:5
If I were a seller in this market, I would really look at the financing carefully. How much are they putting down, how are the comparables (will my property appraise)? There are a myriad of questions to ask yourself where financing is concerned. I would also hope I could trust my real estate agent to point me in the right direction. Cash is clean. No appraisal or loan to worry about. As long as it is within your asking price, take the cash!
- Erik Pearson, "SpringHillHomes"
- Contributions:36
I would tend to advise clients to go for the highest net offer with due diligence of looking into their preapproval. I don't believe a cash offer is inherently less risky than a financed offer.
- Nicholas Ribeiro, "NicholasRibeiro"
- Contributions:1807
Cash is ALWAYS king! Especially in today's world where it seems nobody has any!
- Katherine Cannon, "highheeledhomeowner"
- Contributions:107
Cash is easier and quicker. But most sellers, especially since the average homeowner doesn't have a ton of equity to play with, won't mind waiting an extra couple of weeks for the loan to be processed, if it means they get any more money at all out of the deal. In my experience, you might get a 5% discount for having cash. Some sellers will be a little more flexible, and some won't care at all how their home will be paid for.
- Jim Seabold, "JimSeabold"
- Contributions:1811
I have had clients take lower cash offers over financed offers many time. Less problems can arise, you don't have to have an appraisal or worry about financing problems. And you can close quicker!
- Steven Ybarra, "StevenYbarra"
- Contributions:2
It's Risk vs Reward. If you need move out quick and want to be certain then cash. Now if you don't then I would recommend going with the offer that would net me the most if there's a substantial difference from the cash offer. That's what most banks do when dealing with REO properties (Lender owned properties).
Remember if you got two offers on the table then home was priced right to begin with (in most cases) so if you take the one the will net you most and it does fall through chances are you'll get another offer when it hits the market. Just depends on your Risk VS Reward level your comfortable with.
Remember if you got two offers on the table then home was priced right to begin with (in most cases) so if you take the one the will net you most and it does fall through chances are you'll get another offer when it hits the market. Just depends on your Risk VS Reward level your comfortable with.
Would you rather accept a lower cash offer or higher offer from someone getting a loan?
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- 4.6/5.0
- (1 review)
Contributions:74Many buyers feel that cash is king. If buyers are willing and able to pay all cash with no mortgage, no hassling with the lender and no appraisal contingency, they feel they're owed a price concession.
Not all sellers agree. Some, who are confident in the value of their home, would rather work with an offer from a well-qualified buyer who needs to obtain a mortgage but who will pay a higher price.
Hoping to get the thoughts of seller's in today's market....
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