We are in the position to make an all cash offer on residential property in Ashland, Oregon. We are finding that having all cash can have a negative impact because we are getting countered back without a full understanding from the seller that this is our final offer. Wanted to get an opinion from the real estate professionals in the Ashland area. Do sellers really understand the meaning of an all cash offer today or does seller greed set in and lead the seller to keep going for more?
As an Ashland Realtor, I will give you an Ashland answer. Please let it be noted up front that there is some stereotyping, and attempts at humor here, and to not get offended or take me too seriously.
Ashland is the greatest place on Earth, and seller's know it. Cash is only part of what an Ashland seller needs. They also need to know that you will love the house as much as they do. Does the buyer not only have enough money, will they make sure the Feng Shui stays good. That there is still room to do Yoga in the front where the East light comes in in the morning. Don't forget that there needs to be room in the garage for your Prius, Bicylce, and Scooter. You are a master gardener, right? Volunteer regularly at the Shakespeare and Britt Festivals?
Okay, semi-seriously....
Sellers frequently have egos about their house, the price they are asking, and what they perceive as what they have already lost on it because they didn't sell it 3 years ago. Also factors such as motivation (if it is a couple do both people want to sell), how much they may owe, how much they bought it for,
Almost everything in Ashland sells within 95% of the final asking price.....it is the mentality here. The sellers come to grips with their price if it is too high slowly...reduce the price....and when it becomes appropriately priced...they take an offer within 95%. Now this may be 80% of their original asking price...but it was on their terms.
I assume because you have made an offer, that you are working with an agent who is representing your needs as a buyers broker. I would ask them their experiences with sellers here in the area. Also they should know the differences between Realtors, and the different styles that local Realtors have. That is one of the benefits of hiring a good local Realtor to represent your needs.
Ultimately though is if your best offer is not good enough at this time for the seller to take...it doesn't matter if it is cash, or a loan.
Good question... Most buyer feel as you do. If I have an all cash offer I should be able to lower the price more then someone who needs to apply for a home loan and has to get qualified. The cash can be verified ASAP. However, other use this as a way to negotiate. Although the process of offers and counters can be time consuming and at times frustrating. Your broker should know how to use you immediate funds to help you negotiate a good price for you new home. Good Luck. This is a good time to buy and it can be very rewarding.
All Cash means not much more than cash from the bank unless your offer is written aggressively.
If you waive inspection of title, contingency of appraisal and financing, and post a HUGE all cash deposit after a 5 day home inspection than maybe they will recognize your CASH. Otherwise many sellers and Realtors will not give you the respect you seek.
Some people can be motivated by the ALL CASH offer and to me it is worth something for sure. I agree that many people are told "it is all the same" and that most all offers are Cash at Closing. You have a good position and someone will respond! Good question.
Thanks
Dirk Knudsen
If I were the agent representing the seller, I'd be asking for proof of funds for your cash asset. If that show you have more than the offered price, then I can understand why the seller might be asking for more $$$. If your offer really is your best and final offer, then reject the counter and move on. Or rewrite the offer at a later date. I would venture to guess that all sellers want to get the most they can out of a property, while most buyers want to get it for less than the listed price.
Even with a financed offer, the seller really gets all cash at closing. (mortgage plus your down payment equals all cash to a seller). So in looking at it from this standpoint, all cash is not really better than a buyer who has an approval for financing plus his down payment.
Hope this helps.
Have a Great Day.
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