sherricarroll, Home Buyer in Clearwater, FL

Can I get a better deal,because I may paying cash ?Am looking to spend between 30 and 33..?

Asked by sherricarroll, Clearwater, FL Tue Aug 13, 2013

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6
Sherri,
In your situation, the answer is NO!
Let me explain.
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Most lenders will not grant a loan for such small dollar amounts. Many have limits such as a minimum of $50,000.
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In essence, ALL the offers for a $30,000 to $33,000 residence will be CASH! If you attempt to 'low-ball' with a cash offer, YOU WILL LOSE!
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Obviously, if a buyer is able to get a loan for such a small amount, the conditions imposed by the lender will make the financed offer less attractive to a seller.
1 vote Thank Flag Link Tue Aug 13, 2013
Allow me to add that Top of the World requires buyers to put 35% cash down on a purchase. This is a common practice locally. It is also a typical requirement for a loan on a condominium. Lenders tell us they cannot make loans for less than $50,000 because the minimum fixed costs to set up a mortgage are too high when compared to the amount borrowed.

Yes, you might get a slightly better deal for cash. Be aware, however, that most property today is priced at what the seller expects to get, and in that low price range there is a LOT of competition. All of it cash. That competition also often drives the original asking price up.
0 votes Thank Flag Link Tue Aug 27, 2013
Let's put it this way: If there are multiple offers on a property, but only one is a cash offer, the seller will give the cash offer more weight and consideration. But if the offer is too low, it may not be considered at all.
0 votes Thank Flag Link Wed Aug 14, 2013
As stated below - it depends on what you mean by better deal...

Can you get a property for 30-33K that is listed for 35-40K? Maybe.

Can you get a property listed for 75K for 30K? No, most likely not.

Much like any other property - it really depends on what the comparables say at the end of day, and the situation.

Hope that helps!
0 votes Thank Flag Link Tue Aug 13, 2013
Cash is King... and sellers like to see that you're offering cash... instead of getting a loan... as then they don't have to wait to see if you're going to be approved for you loan.

But Annette is right, that most buyers at that price point will be bringing cash offers, and most lenders don't really offer loans that low. A loan in that range, would be loaded with fees that would be too high, and would be considered a "predatory" loan... Honestly, in my area, $30,000 or so is a down-payment (and a low one, at that), not a purchase price.

Good luck.
0 votes Thank Flag Link Tue Aug 13, 2013
Alan May, Real Estate Pro in 60201
MVP'08
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Hi Sherri,

It is quite common for a seller to accept a lower offer when it is a cash offer. It can also help to offer to close quickly, although it depends on the seller's specific situation.
Please feel free to contact me directly if you have additional questions.

Regards,

Linda Mann
REMAX All Star
727-422-0069
lindamann1@live.com
0 votes Thank Flag Link Tue Aug 13, 2013
thank you so much...this will give me a start...Do you sell condos in top of the world?
Flag Tue Aug 13, 2013
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