I'm a contractor with all cash. What factors get a seller to make a better deal with me than someone that needs a mortgage?

Asked by Wilfredo, Staten Island, NY Fri Oct 18, 2013

I have spoken with several sellers & some willing to give some discount for cash & some not. I want to get a deal this weekend on an upper bracket home that needs work or a gut rehab. I can spend up to 800K for a fixer. What is the best tactic
today to gets sellers to make the deal on the spot?..

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Annette Lawrence’s answer
Annette Law…, Agent, Palm Harbor, FL
Sat Oct 19, 2013
At the closing table it's all cash!
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Most of the time a CASH BUYER is a buyer without varifiable funds.
(note: for $2,500 I can turn ANDYBODY into a CASH BUYER with an acompying proof of fund letter.)
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As others have noted....
REMOVE ALL CONTINGENCIES
CLOSE AT SELLER:s CONVEINENCE
Provide a NON-REFUNDABLE DEPOSIT upon acceptance.
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Now you've got skin in the game and your trustworthiness just increased.
After all, you are a contractor, You know what you are doing. Why would you impose contingencies unless you intended to the the classic cash buyer beat down of the seller?

Best of Success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
0 votes
Anna M Brocco, Agent, Williston Park, NY
Fri Oct 18, 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 with cash--but your offer may win over someone with a mortgage, if the bids are similar, or if the property is not up to code, a cash buyer may be their best solution...
1 vote
Tim Moore, Agent, Kitty Hawk, NC
Fri Oct 18, 2013
Cash is nice, BUT most sellers will gladly wait 3 weeks more for a mortgage to close if it means thousands of more dollars to them.
1 vote
Gary R. DeFi…, Agent, New York, NY
Sat Oct 19, 2013
Wilfredo:

I'm on Staten Island and with Neuhaus Realty. Give me a call at 718 689-3850 and we can discuss your needs.
0 votes
Aadel Mohamed, Agent, New York, NY
Fri Oct 18, 2013
Wilfredo please call me I can help you negotiate a great deal. 718.415.1115
0 votes
Gail Gladsto…, Agent, 11743, NY
Fri Oct 18, 2013
The Seller will never be receptive unless they are engaging a Realtor who gets it. It is in the Realtor's hands to communicate the benefits of a cash buyer and how that translates into $ for the Seller.

The process involves more than an understanding by the Realtor. The Realtor has to be an individual who is confident of their position of Consultant and Advisor to the seller and has the ability to communicate and educate.
0 votes
Tony Grech, Mortgage Broker Or Lender, Southfield, MI
Fri Oct 18, 2013
The fact that the home needs to be gutted probably means that it would not be eligible for a mortgage anyway. So these sellers are probably dealing with the prospect of ONLY being able to sell to a cash buyer anyway.

So your competition is not really buyers with a mortgage. It's other cash buyers such as yourself.

You should be fair in your offer - you're not going to get a dollar for fifty cents unless you come across the rare seller that needs the cash right now.

The best tactic is to offer the asking price! In a lot of cases, the need to gut the house might be baked into the cake already. Barring that, there are a couple things you can look to do.

The best properties that are totally worth the asking price are getting snapped up quickly. You can't sit around twiddling your thumbs. There are some pretty smart investors around that could care less about saving that extra $10,000. They realize that by holding out for something better they may let a good opportunity pass them by. So you should be ready to act if the right deal presents itself.

On the other end of the spectrum, there are some properties that have been on the market a longer time. Most of the time, the reason is that it's priced way too high and the seller is unrealistic. Have your realtor approach these folks and try and reason with them. Your biggest strength is that you have cash ready to go and can close in 10 days with no hassles. Sell this as a benefit so that the current owner can take the money and move on.

Third, it never hurts to have a good vision for what the place can become. Sometimes the worse condition the home is in the more of a jewel it could be for the right person.

Those are just my two cents. I hope you find this informative. Good luck!
0 votes
Ryan Mihld, Agent, Calimesa, CA
Fri Oct 18, 2013
It seems in the current market that CASH WAS KING, the sellers seem to be looking at the highest and best offers now, even if they are financed. However, if you are looking for a "fixer", your only competition should be from other cash buyer since it is difficult to finance a home needing a lot of repairs.

You may want to look into trustee sales, try Auction.com to see what houses are available in your area.

Always Glad to Help,

Ryan Mihld - Broker
Home Buyers Realty Group, Inc.
(909) 725-8001
0 votes
Julie Charti…, Agent, Feeding Hills, MA
Fri Oct 18, 2013
Waive the inspection, give a good solid deposit and a quick closing!
0 votes
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