In general, yes. We've been lucky enough to work with a couple of cash buyers recently. One offer we wrote for them was on a foreclosure, another involved a homeowner. In both instances we (successfully I believe) argued for the strength of our offer based on the buyer's ability to close quickly. As you may or may not know, underwriting time is very long now. We're commonly seeing 6 - 8 weeks from contract to close. If you can close quickly on a property you may be saving the homeowner one or two payments; that's worth a significant amount to the seller as long as the buyer's agent stresses the benefits when presenting the offer.

We deal with a lot of Cash Buyers on Lookout Mountain (and surrounding mountain home areas). Paying Cash can motivate a buyer that is in a hurry or that has had other buyers interested in their home and ended up dealing with credit issues. I would be happy to assist you with a cash purchase. We do it all the time.

Joe Folsom
Lifestyles&Real Estate Team Leader
Modern Rustic Living Team Leader
Keller Williams Downtown
Office: (423) 443-4638
Mobile: (770) 722-5098
eMail: JoeFolsom@KW.com

PS: Want to see what the Real Estate Market is doing? Check out this link: http://modernrusticliving.com/events/ or check out the link below to learn more about the "Modern Rustic Living Lifestyle".

As the others here say, it'll work with some sellers and not with others.

Having said that, in general it's a real advantage, and as Joshua says, make sure you have an agent who can leverage that advantage.

A side note: A question good investors always ask is along the lines of: "If I could pay you all cash and close in 10 days, what's the least you'd accept for your house?" Now, admittedly, investors are more often dealing with "motivated" sellers--though, in this market, there are a lot of motivated sellers. But it's amazing how many sellers come down in price, and by how much. I used that question with a FSBO a week ago. The FSBO wasn't highly motivated; it was the home his mom had lived in before she became unable to live there, and she'd moved. The house was vacant, but paid off, so motivation was, at best, moderate. But the asking price was $400,000, which was really a fair price. And the seller knew it; he'd done his research. But he immediately came down to $375,000. And then, a minute or two later (following up with the question: "Is that the best you can do?" came down to $365,000. And, really, that's pretty typical of my experience.

The point is: You don't get unless you ask. And in today's market, cash is a powerful persuader.

Good luck.

Hello Vickie,

Not necessarily. If the home is price right and has showings, the seller may not necessarily be impressed because you are paying cash instead of financing, they just want their money.

I was in a situation where the buyer was willing to pay cash if the seller would lower the price. My seller said No. The buyer put in a higher offer and financed.

Thus my comment ...... not necessarily.

In this market it is a definite advantage to present yourself as a " Cash" buyer. To the seller you are more of a sure thing because you do not have to go thru the financing process ( this saves time and gray hairs ! ). Have your banker write a positive letter describing your financial strength and relationship with the bank to present with all offers. The ability to close quickly and without falling out of escrow for financing contingencies should support a more aggresive offer on your part !

Vickie,

Cash will allow you to move fast. Don't limit yourself to, but look for vacant homes! This will mean that the seller is already out and can close quick. Usually a seller who has already moved will be more motivated and a quick closing would not be a headache for the seller as the case may be with a home that is occupied.

As Joahua mentioned make sure you have an agent who will leverage this to your advantage. I would be one of those agents!

Good luck finding your new home and if I can assist you in finding it I would love to send you a list of vacant homes in your search area and price range.

Vickie Parks,

UM, YES! In this uncertain mortgage world and wishy-washy buyers, sellers, know that Cash is KING. I've never understood why some people say, I get cash when I close. Actually, in this real estate market you might not! In fact, Georgia, used to be a state where the seller did get cash at closing, but all too often closing are closing in escrow.

If the seller wants a SURE THING, then cash is the way to go. Be sure you can prove it and be sure you have an agent that can utilize that leverage to your advantage.

As a side note, there are some properties and/or property owners that cash will have little to no effect on the negotiations.

Hi Vickie,
Let's look at i this way: the seller will receive cash at closing whether or not you paid cash ofr financed, one difference is that you do not have a financing contingency and would be able to close (hopefully) sooner than if you had to wait for financing approval and documentation.
When you're paying cash, usually the only contingency is the option period for inspections etc.
So I thnk that if the seller is more motivated to do a cash deal it would be because he's expecting the closing date to be shorter and he's assuming that there are no contingecies, making it a solid contract.

P.S.. Make sure that your survey is done during the option period, you still need to do all your due dilligence within the time specified for option, because after that, the contract will go hard.