The only real discount you will get is on your closing costs. I have several foreclosures and the current trend in my area is that the banks are now pricing them low and getting several offers and the properties are selling over the listed price. I brokered a contract in the Palm Beach area recently and in that area they are not budging from the listed price.
If the home is something you love, Buy It. This is still the best time to buy.
Bottom line is "NO". In fact, I lost a cash deal on a foreclosure a few months ago when the bank took a lower price than my cash buyer offered because they financed with the bank that was selling it!
You have been given good information.....essentially the bank primary concern is that you come with an offer in which you are pre-approved. Otherwise they won't consider your offer. As previously, if it comes down to multiple buyers in the same price range, the "cash" offer may tilt the deal in your direction.
Good morning and how are you doing today? What part of Ohio are you from, I am originally from Tiffin. On bank owned properties cash is king in the banks eyes. As far as getting a discount it all comes down to how many offers are on the property, how long has it been on the market, condition of the property and what bank owns it. I have several bank owned properties under contract and have a lot of experience dealing with them. Please give me a call so we can talk about your situation and I will try and stear you in the right direction. I have access to over 100 bank owned and builder left over inventory homes in SW Florida that might fit your needs and wants. Have a great day and look foreard speaking to you.
What is the fair market value of this property? Does it require any major repairs? It is probably already underpriced compared to similar properties, the banks usually price very competitive. Paying cash may help you in a multiple offer situation, but the highest and best offer will usually win in the end.
The answer is no, but there are advantages for paying cash. If the price is already approved with the bank and you agree to the listed price, your offer will be more desireable to those trying to lowball the bank and waiting for financing approval. Also, paying cash usually gets you a faster closing.
If the house is in bad shape with mold and other problems that would make it inhabitable, it may only be available for "cash" buyers. Jeff's right about all offers become "cash" at closing. Today a closing can occur as quickly as a week on a financed deal so there isn't as much value to a quick "cash" closing as there may have been in years past. Of course cash doesn't have the appraisal hurdle but hopefully you're getting a bank-owned property well before market value.