Home Buying in 92373>Question Details

Sarah Breunle…, Home Buyer in Redlands, CA

how low is "too low" of an offer if we are paying all cash? (looking around $340,000)

Asked by Sarah Breunle Johnson, Redlands, CA Sat Nov 3, 2012

I've recently heard that sellers can be offended if an offer is too low and not even counter it. Does this also hold true regarding cash offers?

Help the community by answering this question:


Definitely true, although you are offering cash , the offer needs to be within reason. I represent a lot of sellers and if I had to pick a number , within 5% would be the percentage you should stay in.
This assumes the home is priced appropriately in the current market.

Thank you
Jory Blake
Web Reference: Http://www.joryblake.com
1 vote Thank Flag Link Sat Nov 3, 2012
Sellers are obviously looking to maximize the dollar amount they can receive for the home. With a cash offer an advantage maybe offering a quick escrow as well. No one wants to waste their time, a lower than list price offer is not always offensive but can be if the offer is just way out of the range of what is considered "fair market value". It really needs to be determined by property. We can help advise on purchase prices to offer. Please feel free to contact us anytime.
0 votes Thank Flag Link Tue Jul 29, 2014
yes, they can, and yes it is. If you are dealing with a person as opposed to a bank there is often a large emotional component associated with the sale. They bought it because they fell in love with it so you are insulting their taste.

If you are dealing with a bank they want the most money period, and often don't take into account which offer is more likely to close.

There is no magic formula that selling price divided by x = the right price for a cash offer. It depends on seller equity position, motivation to sell, emotional component, do they have somewhere else they have bought or want to buy, etc...

Find a reputable, experienced local broker to help you figure it out.

Best Regards,

Lance King/Owner-Managing Broker
DRE# 01384425
0 votes Thank Flag Link Sun Nov 4, 2012
All kidding aside,....
Each seller is different. Each property is different.
I say go with the comps and ask your realtor.
If you are not working with one you should for more than just pricing questions.
There is no way to advise on this answer in a general way.
If I was your agent I would try to best understand the negotiating situation to
1. Save you money
2. get you the home you want.

Harold Sharpe - Broker
So Cal Homes
(951) 821-8211
California Department of Real Estate Broker License # 01312992
0 votes Thank Flag Link Sat Nov 3, 2012
Yes it can. Sellers, whether it is a bank owned, standard sale they still want to net the most money as possible, when it is so low that it doesn't make business sense , it can leave a bad taste in their mouth. Just be realistic and within reason and you should have success! If you have any other questions call me direct 951-897-4000.
0 votes Thank Flag Link Sat Nov 3, 2012
In our market, Broward County Florida, cash is good, but a solid financed much higher offer will still beat out a lower cash offer.

The market is very competitive right now so even a cash buyer must send it their highest and best offer.

In your market you want to have the Realtor look at closed sales price in relation to list price and that will give you an idea of what that market is doing. It will also give you an idea of how to structure your offer.

Hope that helps.
0 votes Thank Flag Link Sat Nov 3, 2012
It is true with all offers as the amount of homes for sale has been reduced greatly and the amount of buyers has increased. you cannot base an offer on a specific percentage, you need to have your buyer agent assess what the home is worth in todays market and base your offer on that. you donot know if that listing price is at market value, way above or already priced low for a quick sale.
0 votes Thank Flag Link Sat Nov 3, 2012
Hi Sarah,

The Redlands market currently has very low inventory and so is very much a Seller's market. Most homes are receiving multiple offers over asking price.

Cash offers don't really have much influence as the Seller will end up with cash whether the Buyer pays all cash or if the buyer finances the purchase.

Please contact me if you would like further advise.


Lon Mapes - Redlands Realtor & Consultant

Multimillion Dollar Sales Producer
(909) 726-5935

Follow me on Facebook http://www.facebook.com/orangehillrealty
0 votes Thank Flag Link Sat Nov 3, 2012
dear Sarah,
If you do not have an agent, please call me and I will be more than happy to help you.
Thank you so nuch in advance.
0 votes Thank Flag Link Sat Nov 3, 2012
Hi Sarah,
It is currently a SELLER'S market. Most properties that are priced properly receive multiple offers. Many of these offers will be over asking price. The cash buyers usually win out over the conventional and FHA buyers when their offers are competitive. If you want the property, bid accordingly.
Good luck,
0 votes Thank Flag Link Sat Nov 3, 2012
Yes, that's the case with any offer. It doesn't matter if you're getting a mortgage or paying cash. You want to offer something close to "Fair Market Value". Your Realtor can help educate you on what this means.

A cash offer is certainly more attractive than say a first time buyer who's getting an FHA loan with only 3.5% down.

Talk to your agent. He/she should do a CMA to help you determine what similar properties have been selling for recently in that area. Base your offer on that. Good luck!
0 votes Thank Flag Link Sat Nov 3, 2012
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