Do you think they are not taking that chance?
you always pay less in cash!
if you pay less the broker makes less... never going to tell you that you can pay less!
Cash does not entitle you to a discount. It depends on the property and the seller. Every deal is different.
An aggressive buyer with a large down payment and preapproval from a local lender who I know and offering a premium price might be more attractive than a cash buyer who expects a discount.
I like Lee and Ron's answers - this is one of those questions with no real answer because every transaction is different depending on a slew of things, not least of which is the sellers motivation and urgency. If there is such urgency and if you know how to find that out, cash presented the right way can indeed get you a bit better price. In any case, it makes you a strong contender, because most buyers have not gotten a loan approval, and there is no guarantee the deal will close after a seller pulls the house off the market for 15-18 days while a buyer tries to obtain this approval. Some folks would rather knock $$ off for a "done deal" than wait around and see.
There are many things that go into a successful purchase strategy - and it starts with determining if the home is even worth buying and if it is, then running a market trend analysis and pointed neighborhood pricing analysis to see how realistic the list price is.
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Paying cash however could get your offer accpeted over a comparable offer where the buyer is obtaining a mortgage. You can view that as an advantage, but not a discount.
So, how much can you expect? Anywhere from 2 to 32%...consult your local agent. he or she can provide a hyperlocal market analysis and gauge the seller's stance.
If you have competition, cash should win - cash should at least get the counter...however, what if there is more than one of you cash buyers making an attempt to establish a win/win with this particular seller, Tamanika29?
It's never just about price - it's about price, terms and time.
CASH makes for a STRONGER offer; one less likely to fail due to financing.
CASH does not make a BETTER offer.
Talk to your Tax advisor; you may want to put 50% down, (for example) and keep the tax deduction.