In this market will a buyer generally respond to a cash offer more favorably even if it is substantially lower than the asking price?

Asked by Bamamama1946, Rainbow City, AL Thu Jun 7, 2012

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Robert Mcmur…, , Gadsden, AL
Fri Jun 8, 2012
I tract the monthly sales numbers/trends or market activity locally for Etowah and Cherokee Counties of Alabama and have done so now for over a decade to ACRE (The Center For Real Estate) at the Culverhouse School of Business at the University of Alabama in Tuscalooa (who in turn reports to the national scene) Our MLS computer also does so compiling the same figures, however it's numbers are at times incorrect because we often find in those figures where one of the other offices has forgotten to report something and plug in a sale one of their agent's sold the quarter or year prior to the period we are working with. By including those in the sales figures it appears we had a "boom" in sales that month, when we actually didn't! All of those reports and links are available both on our website: "http://.www.realtyplus-gadsden." target="_blank" rel="nofollow">http:// http://.www.realtyplus-gadsden. com" over "Home Values" and at http://acre.cba.ua.edu/
But to go back to your question, ACRE does have us tract or report the type financing which was involved in the sale. Therefore, as having been licensed as a full-time Alabama Real Estate broker since 1985, I have to speak to your question from experience. The Rainbow City area, as is found in almost every area locally or nationally, a cash offer supersedes other offers no matter what type market there is buyer or seller; because:
1. The seller knows there is most likely not an appraisal and
2. The buyer does not have to go through the mortgage qualification process (which has gotten a great deal more difficult and timely due to the housing crises).
In short; CASH TALKS!
0 votes
Linda Grey, Agent, Port Orange, FL
Fri Jun 8, 2012
In the end the seller gets cash anyway, the only difference a cash offer makes is the time to close. With cash you can close in about 10 days with financing about 30 to 45 days. If it is a bank owned property they don't care anyway they close when they are ready.

Best wishes.
Web Reference:  http://www.TheBeachLady.com
0 votes
, ,
Thu Jun 7, 2012
Of course, it depends on the definition of "substantial", current market conditions in that area, and perhaps how anxious the seller is to be done.

The worst thing that could happen is you are turned down. The best? You get the house. No reason not to try your strategy, if it is a NO, you can always sweeten your offer, right? Nothing to lose.

Best wishes, Jim
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Thu Jun 7, 2012
Cash is not the big motivator buyers with it think it is. Think about this, a seller only has to wait for a loan to be approved to be able to close a deal with the buyer so that takes 30-45 days. Don't you think a seller would wait 30-45 days to get lots more money at closing?
0 votes
Phil Rotondo, Agent, Melbourne, FL
Thu Jun 7, 2012
Bamamama1946;
The owners will, in most cases, respond.
But in most cases the answer will be no.
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