Question Details

Middle Ameri…, Home Buyer in Middle Bass, OH

Is a cash offer for asking better than one a little more than asking price but a loan?

Asked by Middle America Mom, Middle Bass, OH Mon Oct 24, 2011

Help the community by answering this question:

Answers

5
BEST ANSWER
Middle America,
Cash talks, as the old saying goes. Financing is subject to so many variables that if I was presented two offers on a listing, one full price cash and the other slightly more but financed, it would be hard to turn down the cash.
The variables that would make me consider the financed offer would be a large down payment for the financing with a strong pre-approval letter from a lender I trusted. Substantial earnest money along with the financed offer would also weigh in its favor.
Ultimately, it would be my seller's choice. If the non-financial aspects were more favorable they could also tip the scales, such as closing date, selection of my Title & Escrow versus others I'm not familiar with.
If you are the buyer, offer cash and the opportunity for a quick closing or a delayed one if the seller prefers it.
0 votes Thank Flag Link Mon Oct 24, 2011
Middle, Cash is still king! The only place it might not make as much of a difference in in a traditional Manhattan co-op purchase, as you still would need to submit your financial information and be interviewed and approved by the board to be allowed to purchase, but if it was "sponsor sale" or some condos it would allow you to close very quickly.
0 votes Thank Flag Link Tue Oct 25, 2011
Cash does carry clout. A couple of years ago I had a conventional buyer of a foreclosed home. We were in a multiple offer situation and told to come with our highest and best. My buyer's highest and best offer was $900 under asking price. The accepted cash offer was $19,900 under asking price. I didn't understand that one as the listing price was only $59,900.
0 votes Thank Flag Link Mon Oct 24, 2011
Generally the cash offer is better for several reasons. While any loan is as good as cash, you usually have to wait longer for lender approval, and also the lender will want an appraisal that may show up issues that are unexpected and further delay the escrow. Cash buyers are usually investors, more savy and you will know much quicker if the deal can go forward. You might try and find out which buyers seem stronger, and which seem to want the property the most., stronger, meaning which party gives you a gut feeling that they are going to follow through. If the cash offer is just a low-ball, the loan buyer may be more serious. Best, Terry Bell, Realtor, Santa Rosa, CA
0 votes Thank Flag Link Mon Oct 24, 2011
Much will depend on the individual owner and the terms of the offers--in the end, no matter cash, or mortgage, the seller will get paid...
0 votes Thank Flag Link Mon Oct 24, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer