What type of discount off asking price can an all-cash buyer expect to receive in Southern Arizona (Oro Valley, for example)?

Asked by dcamrob, Oro Valley, AZ Sun Apr 1, 2012

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Sun Apr 1, 2012
It truely depends on price band and the property. If the seller is priced right at the outset, there are many instances of multiple offers, and even offers in excess of listing price over the last 2 to 3 months. Competition amongst buyers is heating up. To expect a blanket # for cash discount is unrealistic. Last year cash might have brought more of a discount. Today, not so much so.
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I asked because the headlines in today's Business Section said real estate deals were falling apart in the waning days of escrow at much faster rate according to people in the industry. The number one reason deals fell apart were low appraisals, then problems at the last minute obtaining financing. Therefore, I think a smart agent would explain to a seller that even if you think the price is right, a cash offer offers many benefits to a closed sale. There has to be value in that, for the motivated seller.
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Jerimiah Tay…, Agent, Tucson, AZ
Sun Apr 1, 2012
Depends on price point. The market wide stat is 98.5% list to sale ratio. However; if you're buying in the top 10% of the market (over 275k) you can typically negotiate more. The unknown here is how the home is priced relative to the market, if it's already priced under market don't expect much of a discount, and possibly expect to pay over asking price if multiple offers exist. If you have a specific property in mind I'll be happy to research it for you.
Web Reference:  http://Jtaylorrealtor.com
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Steffy Hrist…, Agent, Scottsdale, AZ
Sun Apr 1, 2012
If you are making offers in an area with low inventory, you may not want to ask the sellers for any discounts, even if buying cash. Otherwise, you may have more negotiating power with respect to price and terms compared to financed offers.
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