Home Buying in 75209>Question Details

Jamie Masters, Home Buyer in Dallas, TX

conventional over cash offer?

Asked by Jamie Masters, Dallas, TX Mon Jun 23, 2014

I put an offer on a house that has being sold as a result of a divorce. The owners are suing each other, they are a couple of payments behind. They are still occupying the house and said they could be out in 30 days. The house is being sold as is. It needs a lot of cosmetic work, and an air conditioner. We made a conventional offer for asking price. We were told there are several other offers on the property. They are below asking price, but one is for cash. In this situation, would it be to the seller's advantage to take my offer over the cash option?

Help the community by answering this question:


How much below asking price are they? If its close the cash is always better, but if it is too far off what they want/need to net they might take their chances with the conventional loan.
0 votes Thank Flag Link Tue Aug 12, 2014
Depends.....cash is flaky.....cash offers often disappear and don't close.
Financed offers have lots of ?....will it appraise, is it livable without working AC? Can you get a loan? Does anything change between now and the time you close, like do you loose your job and then can't get a loan....so financed offers have risk too. Every house is "as is" but that does not mean you can't ask for repairs. Many people do, even the lender can require repairs.

I always say there is more to it than just cash and credit. How fast is the closing, how much earnest money, how much option money, what kind of option period. Is the house insurable, is it financable, what's the profiles of the buyers?

To see more homes in this area see the link below.
0 votes Thank Flag Link Tue Aug 12, 2014
Bruce Lynn, Real Estate Pro in Coppell, TX
Cash is king but it is the continencies that can doom an offer. Getting a mortgage is acceptable but include a pre-qualification letter so they know you are approved subject to an appraisal. Eliminate the inspection by doing itu up front. If you do put in an inspection contingency reduce teh days to like 3 or 5 but no more than 7.
0 votes Thank Flag Link Wed Jul 9, 2014
Generally, it's my experiece that, sellers in this situation will lean toward the fastest, surest, and best offer presented to them. It doesn't necessarily mean the highest amount or cash amount.

Cash offers can gain footing because of removing the possible danger of the buyer's loan not being approved or the home not appraising for the contract amount.

To keep pace with cash offers, buyers should always be prepared to submit a "pre-approval" letter from your lender with the offer. This sould give your presentation a higher level of credibility in the eyes of the seller. Consider taking any other position that will catch the seller's attention: quick closing date, shorter inspection period, higher or secondary escrow amounts, etc.

I hope this information is helpful.

0 votes Thank Flag Link Wed Jul 9, 2014
As Michael, CASH offers are not what they appear to be.
I've seen CASH offer presented by folks who didn't have a dime.
I've seen CASH offers presented by folks who did not control the money.
I've seen CASH offers from folks who had no intention of buying the house.

Now, in Pinellas County Florida 60% of sales are CASH! (According to the Pinellas REALTOR Organization.....and my experience)

That said, I've seen all the suits cash offers wear.
A home seller, such as a FSBO, is in real trouble if they can not spot the predators from the shelter seekers.

As others have stated, price is only one element in the purchase offer. What I advise sellers to assess most closed is the assurance of closing. That means Chase, Wells Fargo and Bank of America gets kicked to the curb FIRST!

Best of Success,
Annette Lawrence, Broker/Associate
Palm Harbor, FL
0 votes Thank Flag Link Wed Jul 9, 2014
Whether cash or convention, the money is still green! Most sellers go crazy when they receive a chas offer, but they fail to realize that the cash buyer can walk also! Sometimes, financed offers are more attractive, to find out how, read all the terms the buyers are presenting.
0 votes Thank Flag Link Wed Jul 9, 2014
CASH IS ALWAYS THE FIRST CHOICE. However, you should be talking with your Realtor and not us.
0 votes Thank Flag Link Sat Jun 28, 2014
All things being equal, a cash over is stronger. But a seller won't necessary give a huge discount for cash when there is a highly qualified, pre-approved buyer who is willing to pay more. Hopefully you have a good agent representing you. All kinds of things can go wrong when owners/spouses are divorced and suing each other. Good luck!

Alysse Musgrave
Consumer Advocate/Exclusive Buyer Broker
#1 Best Selling Author of Buying a Home: Don’t Let Them Make a Monkey Out of You!
0 votes Thank Flag Link Mon Jun 23, 2014
Sometimes money isn't always the driving force behind a seller's choice in offers. Many times, it is other terms the buyer brought with the offer. Perhaps they stated there would not be an appraisal, they could be flexible with the closing timeline, or anything else to sway the sellers. Have your Realtor call the listing agent to see if there is anything in particular the sellers are looking for, in addition to price, that may help sway the odds in your favor.
0 votes Thank Flag Link Mon Jun 23, 2014
Whenever in doubt, talk to your realtor. She/he is there for you!

However, having said the above, it not necessarily to the seller's advantage to take your offer. They may chose to work with the cash offer especially if it's close to what you are offering. Plus, cash offer typically doesn't involve appraisal and can close quick. Again, consult your realtor, I'm sure she has more detailed info that can shed more light.

Good luck,
Susie Kay, Realtor® & Certified Stager
Residential, Commercial, Investment
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240

Servicing your real estate need is my priority!
0 votes Thank Flag Link Mon Jun 23, 2014
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