Home Buying in Dublin>Question Details

Joycelarae, Home Buyer in Dublin, CA

if i pay cash for a home how much will the price drop

Asked by Joycelarae, Dublin, CA Thu Apr 7, 2011

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In the end, the Seller is going to get their money whether it is a cash transaction or a loan. The cash just makes is easier and faster (expecially if the residence is empty and you can close immediately) . Cash for a nonconforming condo would truly be king. Trust your Realtor..they will guide you.
0 votes Thank Flag Link Fri Apr 8, 2011
5%, 3%, 1%, or maybe not at all. Cash for a purchase in central Ohio doesn't guarantee a discount off the price. There are way too many other factors. Cash usually guarantees that if their all multiple offers you will win but even that isn't always true. Believe it or not, cash is not always "king."

http://www.advocate4buyers.com
0 votes Thank Flag Link Fri Apr 8, 2011
BEST and HIGHEST offer normally wins. Although "cash is king" it doesn't always get the deal where terms and conditions trump are important to the seller.

For example, you may be paying cash, but if you are making a lot of demands for the seller to complete or satisfy, or if your offer is so much less than list price/market value, your offer may not be accepted.

Your realtor should be able to advise you of how attractive your offer is depending on the property, location, competition, situation (short sale? REO?)

Good luck to you.
0 votes Thank Flag Link Thu Apr 7, 2011
Many times the price can drop to what the seller has into the home. It can be hard to get the seller to come up with funds to close the deal.
Web Reference: http://EveryListingNow.com
0 votes Thank Flag Link Thu Apr 7, 2011
Paying cash for a home does make you a strong buyer and the fact that your offer is not subject to the usual loan approval processes, such as appraisal, underwriting conditions, etc., the time factor shortens quite a bit and makes your offer more solid, provided that you include a proof of funds with your offer. However, this being said, the price may drop some or not at all, it depends how the property is priced comparably to other homes that have sold recently in that area or neighborhood that are most like it and who the seller is and what the payoff needs are of the seller. If it is a bank owned home for example, the bank has predetermined what they need to have for a bottom line by doing broker price opinions on the current active and sold market values and even an appraisal or two to determine the list price. Because of this, they usually stay at, near or above the list price. Every market is different. If you come in lower, perhaps you may want to offset the price by offering a short closing date, showing a strong good faith deposit or other considerations.
0 votes Thank Flag Link Thu Apr 7, 2011
By paying with cash and not depending on a loan...you could potentially save anywhere from 2 to 5% especially if the seller's fear a potential appraisal issue with the sale price. Most seller's are willing to give cash buyer's more of a discount since cash is king!
0 votes Thank Flag Link Thu Apr 7, 2011
The purchase price of the home will not change, although you are a more attractive buyer than one who needs financing. The way you will save is not paying all the costs associated with the loan; application, appraisal, closing costs associated with the loan closing, and most important the interest.
0 votes Thank Flag Link Thu Apr 7, 2011
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