More to my last question regarding asking price vs appraised value...

Asked by Dawn, Fort Worth, TX Mon Dec 1, 2008

These are all brand new homes, builder owned at the moment and we are looking at paying cash, no financing. Will that make a difference?

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Bruce Lynn, Agent, Coppell, TX
Tue Dec 2, 2008

Cash should not make a difference to the seller's bottom line. It can cut out some costs on your side of the credit report, no appraisal required, no funding fee, no lender fees, etc. It can also cut out some of the upfront costs as you don't need to escrow taxes or insurance.

If you do plan to offer cash, think of a way you can prove the cash to the seller. Have a current bank statement, or stock account statement, or something you can use to prove you have the cash on hand and ready to go. Offer a substancial down payment.

Try to close by year end. Depending on the bank or builder financials that may help their quarter or year to get the number off their books. It can also make a difference for your taxes as you may have some deductable expenses for this year vs next. You can also apply for the homestead exemption which will save some property taxes for you for next year, especially when purchasing a new home.

If you are buying from a builder ALWAYS use a realtor. You can look at my website under new homes for a list of just a FEW of the things we see go wrong when a buyer buys from a builder directly. As one appraiser said to me yesterday when I refered him a client who wanted an independent appraisal on a new house he purchased directly. "I can tell you right now he overpaid, why does he need an appraiser to tell him that and cost him $325?"
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Jeff Kessler, Agent, Austin, TX
Mon Dec 1, 2008
Paying cash can save you a lot of money. You will not have to pay all the lenders fee which can really add up. Should save you almost 3% or more of the price of the home.
Try to close by the end of this year so you can claim your Homestead and save more money on taxes.
If you are not working with a realtor and would like someone to represent you please let me know.
I have sold new homes for over 10 years.
Jeff 512.801.5666
jkagent at
1 vote
Dallas Texas, Agent, Dallas, TN
Mon Dec 1, 2008
Paying cash and financing there is NO difference the builder nets the same you just happen to close faster than a buyer requiring lender approval.

Never purchase a home direct from a builder, seller, listing agent, have your own realtor who can review the area, comp's and etc. works on your behalf. Each area, home stands alone in order to determine what is the true value. A brush stroke approach does not benefit the buyer. Research is involved via realtors access of documents only made available to realtors not the general public.

How a home is built, lot size and etc. all are key factors in determining what is the best offer to place on a home. You dont want to "hack off a builder" many can keep a house on the market wait for an offer they find is acceptable.

Contact my office if we can assist,
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Vicky Chrisn…, Agent, Purcellvile, VA
Sun Dec 7, 2008
Since loans are hard to get in some cases, a builder should be willing to make a concession (ie give a discount) since you will be able to write a non-contingent fast close. The faster the settlement the more money the builder is saving on carrying costs. Don't expect it to be a HUGE discount, but it should save you some money. I am certain that a builder who is selling will know the risks assocated with any loan contingent on financing these days, so he should see value in your offer.

Also, I am confused by the title of your question - asking vs. appraised value... maybe my blog post referenced below will help you understand some of these terms.
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, ,
Tue Dec 2, 2008
I have been reading through the answers you have received and it seems that you have a variety of answers. As far as a cash sale.....a seller whether it is a builder or individual does not really care where you get the money to close. A seller simply wants to get to the closing table with a buyer having the money.

A quick close is always a positive for a builder because the longer he has the home on the ground the more money it is costing him in interest.

If you do not need to borrow money certainly you will not have any lender costs, but in my opinion you will still want a title policy and I would also encourage you to get a survey.

It is certainly a great time to buy.

The MBY Realty Group hopes you find a great home to enjoy the holidays!
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Terry Smith, Agent, Fort Worth, TX
Mon Dec 1, 2008
Sometimes the builder will give you a little discount because he saves a little money on his closing costs. In the end it is still cash to him at closing! You get a better discount for closing fast!

Terry Smith
RE/MAX Achievers
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T.E. & Naima…, Agent, Dallas, TX
Mon Dec 1, 2008
Hello again Dawn,

It really doesn't matter to a builder if you're paying cash or financing your transaction, the end result is the same, they get the same amount of money. However, occasionally, the builders offer incentives if you use their mortgage company and that should be taken into account when making an offer.

My offer to assist you still stands.

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