Are there may buyer's that come in with all cash deals? If I offer all cash how much discount can I expect to get a on the price?

Asked by Isaac, Staten Island, NY Thu Oct 17, 2013

Cash is king. Do seller's appreciate cash by making a larger reduction in price?

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Anna M Brocco, Agent, Williston Park, NY
Thu Oct 17, 2013
Regardless the method of payment, in the end the seller gets paid; therefore if a property is priced on target, don't expect a discount for purchasing in cash--but your offer may win over someone with a mortgage if the offers are similar...
1 vote
, ,
Thu Oct 17, 2013
I saw a statistic recently that about 40% of real estate transactions in today's market are cash deals as opposed to with mortgages. So there are a lot of buyers out there with the same idea as you.

The attractiveness to a seller of having a cash buyer is that the transaction can close quicker without having to wait on a lender to approve things. No appraisal, no underwriting, etc. In addition, if there are certain features of the home that make it hard to get financing approval - it's a nonwarrantable condo, it needs some major rehabbing, or there are health or safety issues - then you may only be competing against cash offers.

A cash buyer definitely has advantages over the first time homebuyer with a low down payment. Not as much as an advantage over a well qualified borrower with a large down payment, because many sellers would rather get a better price if they knew there was a great chance of the deal closing.

I would not go into things expecting to get a dollar for fifty cents, unless you are looking at properties that need a ton of work and you can properly visualize things. If a property is truly worth it then there will be several competing bids so you will have to keep up with the other cash buyers and not come in too much below those buyers with a mortgage.

That doesn't mean good deals aren't out there. You just have to get a real good Realtor and have realistic expectations.

Best of luck!
1 vote
Jill Subes, Agent, New York, NY
Thu Oct 17, 2013
Many buyers will give a better deal to a cash buyer but there is no set amount that you can discount. You have to feel comfortable with the offer.
0 votes
Deborah Brac…, Agent, STATEN ISLAND, NY
Thu Oct 17, 2013
From my own experience, I can tell you the seller I'm in negotiation with on and off since August never swayed from his desired price in spite of my cashbuyer....
0 votes
Thomas Bohlm…, Agent, Rolesville, NC
Thu Oct 17, 2013
30-40% of.all RE transactions are cash

No discounts, but you can close in 30 -45 days.
0 votes
Thomas Moser, Agent, East Northport, NY
Thu Oct 17, 2013
While a cash buyer is attractive to sellers, do not expect to get a dramatic discount. It may help you win out if your offer is somewhat below a buyer that is using a mortgage, but won't do much good if there is a substantial difference in the offers.
0 votes
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