From what I've seen cash is winning out in most cases. I just had a client buy a foreclosure they put almost 50% down. Their offer won out even though they weren't the highest bid, partly due to the amt. down plus their excellent credit for the balance. The seller (bank) required all offers to call their lender for a pre-qualification. I know my client's have excellent credit. The bank had told us they were not the highest bid. Frankly, I did not believe they would win out. They had lost out on others where the buyer had paid Cash. Right now what I've been hearing is if it's not Cash the banks want to know that the sale will go through, so strong buyers w/excellent credit, high down payments etc. From the offers are that are coming in they're looking for strong buyers etc.
I hope that this helps you. If you're looking to purchase in Utah check out my home search site below.
I can assist you through this process and make it a bit easier for you.
Becky Nay, GRI
Keller Williams Realty
Each have their challenges and risks. I don't know that I'd be paying all cash in a market where money is cheap though.
It's different to liquefy your cash when its tied up in counter tops and doorknobs.
Normal sellers who want or need to sell would be more likely to entertain a lower cash offer so they know no financing problems will come up and the sale will go through. That means give a real low offer and be prepared to walk away if you do not get the house. cash is king but sometimes even kings have to look for the perfect place for their castle.
Otherwise you can wait until the bank lists the property and hope that you're the highest bidder.
If you can wait for a short sale, you may get a good deal there but it may take 6 months or I've seen longer to close. You will not get a house for half off, however. The short sale loss mitigators will have an appraisal done to determine value.