Chrisine, my opinion is that there is a misconception that by paying "all cash" you will get a better deal on the property. Even with lenders tightening guidelines and less qualified buyers in the market, I haven't found there to be a difference in the price agreed to be the Seller. The Seller's main concern is "do I have a qualified, bonified Buyer?" If the Seller has a good agent, they will have all of the buyers financials, a preapproval letter, and in many cases today, will actually speak to the lender prior to accepting the offer. With the information we are able to obtain, all cash vs. financing doesn't make too much of a difference. Even though the market has slowed, if a property is priced properly, it will still sell in today's market. You will only find a big savings if you happen to find a property where the Seller needs to close fast (less than 15 days or so) or has some other type of personal or financial hardship.
Whether you are paying all cash or financing your purchase, most seller's understand they will need to make some concessions on their sale. These concessions will more than likely come in the way of crediting you money for closing costs, repairs or maybe some small updating (paint, carpet, etc.).

Tue Jul 22 2008, 00:15

Chrisine,

That's a bit of a tough question to answer. I am sure that you have read books on Real Estate investment where people go to the court house and buy homes for pennies on the dollar. Some of this is going on today but the buying is controlled by a handful of major players. These guys (manly men) are a tight group that are prepared to outbid anybody who shows up at the auction trying to break into the world of real estate investment. The best thing to do is start biding on some of the foreclosures currently listed on the market. The banks are motivated to get rid of these and you can spread your cash a bit further through leveraging your principle investment.

Mon May 5 2008, 12:15

It all depends on how quickly the seller wants and needs to close. If the seller wants or needs to close quickly, cash in hand should give you an advantage over a buyer dependent on financing, even an approved buyer. Some buyers, even with loan approval, still don't end up closing escrow. I have to say, though, in a lot of areas, banks aren't that desperate yet.

Sun May 4 2008, 10:54

I'm sorry. Let me be a bit more specific.

Cash in hand in full when purchasing bank owned properties. I've spoken with a few agents and with an offer from another buyer, I asked them if the bank would take a bath and cover costs for cash in full. They were more than happy to oblige.

Of course you wouldn't lower your price if you had a strong approved buyer. My question was more in terms of REO's. My apologies.

Sat May 3 2008, 21:23

To the seller, cash in your pocket is the same as cash in the lender's pocket. If a buyer who is seeking financing has been approved and provides proof of funding, whether it be their cash or the banks cash, the price is going to remain the same. I wouldn't drop the price of my own home for a cash deal because there are plenty of buyers who can qualify to purchase at my asking price.

Sat May 3 2008, 16:57

Hi there Chrisine, payinfg full cash is good. But if you are a seller who also has a buyer fully approved with a strong down, high ficos. etc It may not be that much of an advantage. However there are many more areas to negotiate that will help you moer than this. A good experienced Realtor can help you here and save you more than you think
If you would like to know more please contact me

KindRegads
Michael Barron
Realtor
First Team Real Estate
(714) 552-6817
www.ntustinhomes4sale.com

Sat May 3 2008, 15:58

Isn't zillow using county records as well? What does the MLS offer besides comparable listings and sales?

Sat May 3 2008, 14:49

Chrisine,

Cash just makes you a stronger buyer and the rest is what I call "A willing buyer and seller," agreeing to make a deal. You can always ask for closing costs, improvements, or other espenses, but it all comes down to the bottom line with the seller. What are they going to get at the end of the day. If you put $150K down on a condo worth $200K and ask for 30K in closing costs the seller will net $170K. If I have a buyer that puts down 3% and does not ask for closing costs, then the seller will net $200K. If you were the seller which deal would you take?

Joe Homs
Realty Partners
949-625-4533

Sat May 3 2008, 14:08