Home Buying in 43016>Question Details

Akira Nguyen, Home Buyer in Washington, DC

Does all cash buyers likely to get better offers on the house?

Asked by Akira Nguyen, Washington, DC Tue Feb 19, 2013

Help the community by answering this question:


Let's consider the ways a financed offer can be compromised and effect the home seller.
(Pulled from archives dated March 6, 2013)
1. Schedule appt and notify agent, No lock box, I MUST BE PRESENT TO SHOW!
2.. Agent arrives 45 minutes early and forces buyer and agent into an 82 year old widows home.
3. 3 hours spent counseling terrorized 82 year old seller that this will never happen again..
4. Full price offer submitted by agent with 5% down
5. Lender is Wells Fargo
6. Kick to curb and accept lower, cash offer. (within 1% of list price)

Everything about this event spelled trouble...never ending trouble.
The magic of cash offer is the greater assurance of closing. Mix in a rogue agent, a Too Big to Care about dates Lender, and the scheduled beat down from the appraisal and you find CASH offers have the same soothing influence as fresh cookies and apple pie in the oven.

Agents, your behavior can sink you buyer chances.
Going rogue is ill advised.
Making demands (must review deed restrictions before making offer)
Allowing buyer to fiddle while home is being marketed.
Making irrelevant comments detrimental to home while buyer is saying, "It doesn't matter."

In the last two days I've observed agents prevent their buyer from succeeding.
Cash buyers WILL BE PRESENTED as more appealing to sellers than those buyers with rogue agents who have lost track of what is really happening in today's real estate reality.

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL

Home Tour - Scotsdale Bluffs, Dunedin, FL
0 votes Thank Flag Link Thu Mar 7, 2013
What is this??? What are you presenting in this convoluted scenario??? This is plain crazy.
Flag Thu Mar 7, 2013
Cash buyers do not always get better offers on a home. There are always other factors in a contract to consider, for example the closing and possion date, the inspection remedy and of course the price.
0 votes Thank Flag Link Thu Mar 7, 2013
That would depend your situation financially and the time frame you have set for a sale. I always provide my Sellers with a Net Sheet that includes the costs of sale on 3 different sales prices to give them an idea of what they would net at those prices. If the cash sale is close to what you expected, then I think taking the offer would be in your best interest, if it would create a financial hardship, counter it and see if they take it. Call the title company you plan on using, that should help if you know your mortgage balance. You need to know your closing costs and other expenses to make an informed decision. Sorry, it just isn't as easy as taking a certain per cent.
0 votes Thank Flag Link Wed Feb 20, 2013
If you were the SELLER; how much less would you accept?
0 votes Thank Flag Link Wed Feb 20, 2013
I agree with Michaela and James....cash if all other terms are the same, can close in a matter of days. And many times that matters.
0 votes Thank Flag Link Wed Feb 20, 2013
The only real advantage a cash buyer has is the ability to close quickly and for the seller to know there's no likelihood of any mortgage related delays. Many cash buyers don't want to take advantage of their ability to close quickly (and if the seller is in the property closing quickly may not work for them anyway)

When the day is done well qualified buyers getting a mortgage are just as good as a cash buyer and Sellers are focused on what their going to get for the bottom line. Having cash and believing this enables you to bottom fish is not usually a great strategy.

Find yourself a good experienced buyer broker in your area and consult with them. I've attached a link below on how to find such a person.
0 votes Thank Flag Link Wed Feb 20, 2013
The Seller gets the same amount at closing regardless of whether the Buyer has cash or a mortgage. If all of the terms of the offer are the same then the cash buyer ( who shows proof of cash deposit with the offer) will have the edge.
0 votes Thank Flag Link Wed Feb 20, 2013
I agree with Jim. We rarely have issues with buyer financing. I wouldn't counsel my sellers to take a lower offer b/c the buyer has cash if another buyer has been preapproved with a reputable lender. Michaela Grandey
0 votes Thank Flag Link Tue Feb 19, 2013
Normally cash wins if you are a cash buyer. However, not always. Just depends on the seller and who they are and why they are selling.
0 votes Thank Flag Link Tue Feb 19, 2013
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