Cash will certainly help and is a nice advantage to have but it will always depend on the sellers motivation and if there is any competition for the home. With that said 50% down would carry a lot of weight as well.
It depends...each sellers situation is different. There goal is to sell there home in the shortest amount of time for the most amount of money. If an offer arises that is suitable it may behoove the seller to accept less than asking if it means the transaction can close in a week versus a month.
My recommendation would be to know what you want, research the statistics of the individual units/buildings and be prepared to make your best offer. If it's not accepted than be prepared to move on. There are a lot of good properties in SoMa.
Most active agents understand that Cash is a huge benefit in today's market. Find an agent who is not embarrased or shy about finding you a good buy.
What you need is a good agent who also networks well with other agents and is a pit bull on a pork chop when it comes time to negotiate.
It's not always what you say, it's how you say it. You can ask for a discount and still be classy about it. It's about the agents technique and packaging of the offer.
Good luck, Tina.
BTW If you're reading the same book as every buyer seems to get about going to the listing agent for a better deal... Think again!
Most agents worth their salt won't 'give away' their commission, nor will they sell their client (the Seller) down the river. Of course there is good and bad in every profession... Personally I don't do dual agency except on very rare occasions and both parties are completely aware i'm in the middle. After hundreds of transactions I can still count the number of dual agency transactions on one hand.
Good luck and if you want to sit down over a cup of tea or coffee and talk without obligation, give us a call.
Zephyr Real Estate - San Francisco
During the height of the recent financial meltdown cash was important because lenders were scarce and conditions were onerous. It isn't that way so much anymore so see is your cash means much to the seller. I'd have to say if I was on the other side I wouldn't be falling over to get your cash. Monney is all money and selling price is more important all other factors being equal.
If what you are asking is will tendering a cash offer most likely allow for more negotiation, the answer is usually yes. The lending environment is so difficult these days that taking all the drama and wait out of that portion can often make you the winning bidder in a competitive offer situation, sometimes even over a higher bidder.
But Michael is right - in the end a financed deal will be all cash to the seller so you need to have the terms be better as well. The best thing about cash is you can close faster and with no drama over financing.
Another instance where the cash strategy doesn't help is if an owner is in a very tight equity position - cash or not, if they have to write a check to make the deal it's not going to be attractive. Cash also seems to have little impact on foreclosure properties. Banks tend to look at the bottom line dollar amount, even when the cash offer has much better terms attached.
When presenting an offer there are many components you need to take into account. Here are a few:
the actual offer
seller equity postion
selling the listing agent on the deal
A good broker will address all those components, and an experienced negotiator can save you a lot. We have a deal closing later this month where we got the price down from $1.8 to $1.325, and our buyer clients almost never pay asking price.
I would interview a few reputable brokers and pick one who will best serve your needs. We do a lot of business in SOMA and I also live here. If you want a no strings consult our contact info is below.
Lance King/Owner-Managing Broker
Interesting question. To the seller at close of escrow, it is all cash whether it was financed or not. That is the fact.
I have found over many years the buyers who say they have all cash want a bigger discount than their cash is worth. If you think you are going to get 10 - 20 - or even 50 percent off, be prepared for a flat NO. These are negotiations and each one is different. A good agent will be able to finesse your best deal...
Zephyr Real Estate
I can tell you from experience the patient guy wins in real estate, and with cash, you can be patient and have a good opportunity to get a great deal.
Cash is still "King!"
But to assume the price of any thing will be automatically discounted could be a big mistake. Our recommendation is work with and through a real estate professional that can present your offer(s) in a manner that empahsizes your cash offer as well as other important seller considerations. Such as a quick closing date, few or no contingencies, a sizable deposit, proof of funds documentation etc.
The answer is most likely yes especially when looking in SOMA. If you are looking in many of the larger complexes in SOMA then financing can sometimes be tricky; so yes, cash should get you a better price and what Bill said previously is true. Most listing agents are going to urge their clients to take the all cash offer, but it ultimately depends on the individual needs of the seller.
As for contingencies, that is something to discuss with you agent, but I personally would always have an appraisal.
Let me know if would like to discuss market trends in SOMA or need any help constructing an offer.
Prudential CA Realty
1 Daniel Burnham Ct.
San Francisco, CA 94105
415 728 5580
Having enough cash to purchase the house puts you in a position of strength over most buyers. You or your agent have to know how to use that position to negotiate the lower price. Show the seller that your ability to purchase with cash makes you a stronger, more sure buyer, and that security is worth giving up a few dollars to have.
To protect yourself, you might want to buy title insurance. Also a termite inspection might be in order for those purchasing in areas where termites are an issue. You might even do an appraisal if you are not sure about the price. These things are normally required by the lender.
I would suggest that you hire a buyers' agent who will protect your interests. Their fee is usually included in the price of the home. If you need help finding one, I would be glad to help you.
Real Living Eudailey Real Estate VA
Real Living at the Beach SC