Something should be done about cash purchase so that financed buyers can buy.

Asked by hector_santos, Cypress, CA Wed Apr 10, 2013

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Alex Montelo…, Agent, Seal Beach, CA
Thu Mar 27, 2014
How's it going Hector? The market has changed a little since your post. Yes, there are still cash offers being made but fewer. As someone mentioned in an earlier post, some cash investors do the ol switch a roo on sellers... What I mean by that it they always say that it is all cash and somewhere down the road they change the terms to add financing of some sort. The seller usually has no choice but to continue to move forward because at this point they are invested. This is what's going on in most cases.
Don't fret, if you are working with a hard working Realtor, I am sure that you will secure something eventually. Hang in there and keep trying.

All the best,

Alex Montelongo/Broker
Coldwell Banker Star Realty
562-810-7387 Cell
BRE Lic #01456982
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Bill Cook, Mortgage Broker Or Lender, Manhattan Beach, CA
Mon Mar 3, 2014
2013 was the highest on record of cash buyers vs. financing. It is usually in the low teens, but last year it was in the 30-percent range. This will not continue. It is good to be patient as we all learned 20% gains per year is not sustainable.

However, if you do have the cash, I've worked with investors who make an all cash-offer and show proof of funds, but end up financing it at COE in the same number of days. The Seller gets the same amount if it was cash or financed so everyone is happy.

Some people just offer 5-10% above asking IF they absolutely must have the property. to beat a cash offer. It is tough out there.
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Kawain Payne, Agent, Seal Beach, CA
Sat Apr 13, 2013
Hello Hector,

I hear you, and feel your pain.

CASH buyers are making financed buyers shake in their boots. Not to mention us buyer's agents. Talk about working hard:)

I am having my buyers avoid REO sales, as these are just the type of sales investors are seeking for a quick close and flip deal.

There are listings out there that stipulate owner occupancy for a period of time, these will not appeal to investors, so financed buyers should have their agents focus like a laser beam on these types of listings.

Just be patient and stay engaged in the home buying process. If you have a hard working buyer's agent on your side, you will get a home. Be prepared to write several offers before you get one accepted.

Much success to YOU!!!

Kawain Payne, Realtor
Prudential California Realty
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Charles Park, Agent, Cypress, CA
Wed Apr 10, 2013
Normally, all cash requirements apply to auctions at either private or public sales like foreclosures or tax lien sales. However, generally all cash or financed offers can be made to any homes usually on the market. But most sellers will prefer more cash than more loan offers. That is, if you offer all cash and the second person offered the same amount as you but was financing half their purchase, everything being equal, you'd probably get the deal. The reason is that the seller can then avoid the loan contingency and the chance that something can go wrong in escrow with regard to financing.
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Andres Moral…, Agent, Tustin, CA
Wed Apr 10, 2013
Cash buyers shouldn't be a worry. What I recommend to some of the buyers I am working with is before submitting an offer to write a quick biography about themselves and a description of why they like the property, to explain what characteristics about the property and or neighborhood that compelled them to write an offer for that property then this information is presented with the offer being made. Generally once the offer is presented to the seller and the terms of the purchase makes sense such as price and net proceeds for the seller then the seller will generally will focus on what or how they can identify with the buyers if your situation is compelling or the seller identifies with the buyer then generally there will be a deal.
Another recommendation would also be to have the agent you are working with present the offers personally to the listing agent and assure the agent that you the buyer and the agent are in for the long term and will available during the entire transaction.
One more nugget would be to study the current market conditions in the neighborhood your planning the purchase, once the property is identified than write the offer at listing price or higher depending on the circumstances at the same time making sure that you safe guard against any appraisal issues unless they are negotiated prior to. I wish the best of luck, if you have any additional questions please feel free to ask, the answer to your questions are free.

Andres Morales
California Real Estate Broker
GRI, E-PRO, S.F.R. , C.H.S. , H.P.S. , C.M.H.S. , S.C.M.S.D.C. , V.O.S.B.


"Andres Can Help"

17291 Irvine Blvd
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Tustin, CA 92780
949-306-9260 Direct
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949-259-4550 Fax
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Maria Gilda…, Agent, Manchester, CT
Wed Apr 10, 2013
There is no legal bearing or legal grounds to exclude cash buyers from purchasing homes so that other buyers who are financing their homes will have more leverage, unfortunately.

Such is life. It may be harsh to some who are not as privileged as those who have cash at their disposal.
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Connie Bramb…, Agent, Rancho Cucamonga, CA
Wed Apr 10, 2013
Hi Hector
Are you saying someone or some entity should take away the right of hard working people who have been able to save or work for enough money to pay cash; and invest it in Real Estate for their future?
That would be just wrong, in my opinion.
If you are havig trouble getting your offers accepted you need to find a Realtor who will work smarter and get an offer accepted. You will also need to be patient as there are many people offering on the same homes. You will get one, you just need to hang in there with the right agent/company.
Connie Bramble
Prudential CA Realty
dre: 898302
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Thierry Abel, Mortgage Broker Or Lender, Corte Madera, CA
Wed Apr 10, 2013
Title companies have been slammed as well and it is going to take a few days to deliver a clear Title report any way (which you need whether you buy cash or not). So for a few days more you might as well get the financed offers if you can get more money.

We are currently closing in about 17 days on our pre-approved transaction
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Steve Alford, , Orange County, CA
Wed Apr 10, 2013
Cash buyers are easier to work with. On all of my listings I take into account that if offers of equal amounts come in, the cash offer usually gets accepted. The only way this will be different is if the financed offer is significantly higher. I would keep that in mind when having a client make an offer. There is little incentive for any party involved to go with a financed offer, unless there is more money on the table.

Steve Alford
Orange County real Estate Group
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Thom Colby, Agent, Irvine, CA
Wed Apr 10, 2013
I'm not sure what you mean.

Either Cash or Financed Buyers have an equal opportunity to make a realistic offer on any property. Sometimes a property will be advertised as "Cash Only" likely because it would not qualify for financing for any number of reasons. The Listing Agent will know whether the property will qualify for financing or not.

Cash Buyers typically offer a lower amount than financed buyers so therefore financed Buyers may have an advantage.
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Thierry Abel, Mortgage Broker Or Lender, Corte Madera, CA
Wed Apr 10, 2013
In order to ease our borrowers' frustration of making multiple offers and not getting them accepted, my company has recently rolled out a solution that has been providing great resultst...We call it "Keys on Time Guarantee".

This program guarantees to close the transaction on time, or the borrower gets $795 refunded to them. (we have never had to pay that money out so far)! We are the 27th largest non-depository Mortgage Bank in the United States, so we are closing our fair share of transactions.

We are closing these loans so quickly that we feel confident that we can help buyers write a contract that will stand out from the others; from reduced escrow days to the one of a kind "Keys on Time" Certificate that we provide to submit with the offer, and stand out from the crowd of offers.

Contact me if you want to learn more?



Thierry Abel
Senior Loan Consultant
All California Mortgage
A Division of APMC
P: (415) 464-8261
C: (415) 378-7508
F: (415) 464-2367
NMLS 304353 - DRE 01380701
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