This assumes the home is priced appropriately in the current market.
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.
Lance King/Owner-Managing Broker
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
California Department of Real Estate Broker License # 01312992
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.
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
Follow me on Facebook http://www.facebook.com/orangehillrealty
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.
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!