Home Buying in Cape Coral>Question Details

Jim Johnson, Home Buyer in Ohio

On a bank forcloser with a listing price of 100,000.00 should i get a discount for paying all cash?

Asked by Jim Johnson, Ohio Fri Aug 22, 2008

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Answers

8
Hello,
The only real discount you will get is on your closing costs. I have several foreclosures and the current trend in my area is that the banks are now pricing them low and getting several offers and the properties are selling over the listed price. I brokered a contract in the Palm Beach area recently and in that area they are not budging from the listed price.
If the home is something you love, Buy It. This is still the best time to buy.
Good Luck
PAUL ANTONELLI
2 votes Thank Flag Link Sat Aug 23, 2008
Jim-
Bottom line is "NO". In fact, I lost a cash deal on a foreclosure a few months ago when the bank took a lower price than my cash buyer offered because they financed with the bank that was selling it!
Carolyn
1 vote Thank Flag Link Sat Aug 23, 2008
Hi Jim,

You have been given good information.....essentially the bank primary concern is that you come with an offer in which you are pre-approved. Otherwise they won't consider your offer. As previously, if it comes down to multiple buyers in the same price range, the "cash" offer may tilt the deal in your direction.

Good luck,

The "Eckler Team"
1 vote Thank Flag Link Sat Aug 23, 2008
Jim,

Good morning and how are you doing today? What part of Ohio are you from, I am originally from Tiffin. On bank owned properties cash is king in the banks eyes. As far as getting a discount it all comes down to how many offers are on the property, how long has it been on the market, condition of the property and what bank owns it. I have several bank owned properties under contract and have a lot of experience dealing with them. Please give me a call so we can talk about your situation and I will try and stear you in the right direction. I have access to over 100 bank owned and builder left over inventory homes in SW Florida that might fit your needs and wants. Have a great day and look foreard speaking to you.

Thanks,

Scott Riddle
239-289-1849
1 vote Thank Flag Link Sat Aug 23, 2008
Hi Jim:

What is the fair market value of this property? Does it require any major repairs? It is probably already underpriced compared to similar properties, the banks usually price very competitive. Paying cash may help you in a multiple offer situation, but the highest and best offer will usually win in the end.

Good luck!

Kathy Phillips
Coldwell Banker Residental Real Estate
http://www.FloridaMoves.com/Kathryn.Phillips
1 vote Thank Flag Link Fri Aug 22, 2008
Jim,
The answer is no, but there are advantages for paying cash. If the price is already approved with the bank and you agree to the listed price, your offer will be more desireable to those trying to lowball the bank and waiting for financing approval. Also, paying cash usually gets you a faster closing.
0 votes Thank Flag Link Mon Aug 25, 2008
If the house is in bad shape with mold and other problems that would make it inhabitable, it may only be available for "cash" buyers. Jeff's right about all offers become "cash" at closing. Today a closing can occur as quickly as a week on a financed deal so there isn't as much value to a quick "cash" closing as there may have been in years past. Of course cash doesn't have the appraisal hurdle but hopefully you're getting a bank-owned property well before market value.
0 votes Thank Flag Link Sat Aug 23, 2008
Hello Jim,

Your answer is probably no, since the property has already been discounted. However, you would have a stronger offer.

Phil Fowler
Keller Williams Realty
http://www.PhilFowler.com
0 votes Thank Flag Link Sat Aug 23, 2008
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