Home Buying in San Marcos>Question Details

J Melton, Home Buyer in 91942

All Cash Offers, are they the best and will you be more likely to get the home you want

Asked by J Melton, 91942 Mon Jun 2, 2008

Some people have told us all cash offers are the best and some have said it doesn't matter if we have a strong pre-approval. If there is another offer on a home that is higher than we can offer by $5000 to $25000 will we have a better chance if our offer is all cash on a short sale or foreclosure.

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No question that money talks. Using cash for a quick turn around and for a bank owned can give you the leveage you want. If it is an organic sale...meaning a home being sold by the owner, with no bank involvement, cash does not mean much unless you are using it for a large good faith deposit or if you are buying a home for more than an appraisal. The seller will get all the cash once you close so cash or a preapproved loan = the sale. Hope this helps.
0 votes Thank Flag Link Wed Jul 2, 2008
Cash is king if:
1. The sale is a foreclosure and you can close quickly.
2. The seller needs to close quickly for a specific reason. (i.e. foreclosure sale is next week)
3. If you are paying more than the property is worth and it will not appraise.
4. You are in a declining market where lenders are wanting bigger downs to close loans.
5. You are buying a property at the court house steps.
0 votes Thank Flag Link Tue Jun 24, 2008
A cash offer I think is good at times, but I think most buyers are not realizing the market is close or even at bottom, as here in Arizona the REO's are getting mulitple offers, so if your in a Bid and your offer is cash, and the other offers are loans, most lenders still can close a loan in 10 to 15 days, but as a REO the Accepatance of the offer might take a couple days to a week. So they will take an offer that is 10,000 higher if it was a loan. I would look with an agent find the right buy, and stay away from the short sale if you can. You will have better luck with the REO. Chris Davis State Mortgage 602-686-9752
0 votes Thank Flag Link Tue Jun 3, 2008
Cash isn't necessarily the best. When a loan closes, it is the same as cash to the seller. A buyer with a pre approval letter may pull just as much weight as a cash buyer.
Web Reference: http://getprequalified.com
0 votes Thank Flag Link Mon Jun 2, 2008
Hi there J. I agree with the previous answers , cash offers are better but if below another offer for more money. The banks want the most net so be careful about that. There are many others things you can do to make you offer stand out from the others. If you are not working with a Professional Realtor let me know as I might be able to help you. I work with buyers and am in Oceanside, San Marcos, markets all the time.

Kind Regards
Michael Barron
First Team Real Estate
(714) 552-6817
0 votes Thank Flag Link Mon Jun 2, 2008
I agree with Diane. The key is the net price,the ability to close quickly and cleanliness of offer.
I assume based on the questions you have been asking via Trulia that you do not have representation? If you do not have a realtor, you should get one-especially for bank owned properties. It is not in your the best interest to utilize the realtor who is representing the bank.
In addition, whatever offer you make, if you know that there are multiple offers and you really want a house make the offer as clean as possible. There are so many homes with more coming on weekly in San Marcos. If you have a realtor who can give you a market outlook; comps, oncoming foreclosures in neighborhoods, etc you be able to make better decisions when it comes to offering price. In addition when it comes to bank owned properties, the longer it is on the market, the more leverage-you the buyer has.
Good Luck
Web Reference: http://www.abellre.com
0 votes Thank Flag Link Mon Jun 2, 2008
You're just going to get more opinions here too. :) I think it depends on how much you're putting down. If you have a strong down payment, pre-approval letter - and for short sales a HUD - then all cash isn't necessarily going to be the winner. It also depends on the rest of the terms in your offer. For example, if you're offering all cash but have a long contingency period, then cash is definitely not king.

In my experience, sellers and lenders alike are looking at the bottom line: their net.

I can't address foreclosures for your area. In San Mateo County the only way to buy a foreclosure is with all cash.
0 votes Thank Flag Link Mon Jun 2, 2008
All cash is best however the bank is looking for the best NET price. So they're not going to sell it for $5-25k less just because it is cash unless the house has been on the market for awhile and is less desirable. If the financing is strong for the other buyer, they'll still take them because they all get cash in the end. You're asking some good questions! I saw some great buys in San Marcos over the weekend, BTW.
0 votes Thank Flag Link Mon Jun 2, 2008
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