Q: Why would the listing agent accept an offer that is $10,000 more than I offered, when I am a cash buyer?
A: Because itâ€™s $10,000 more in the sellerâ€™s pocket when the deal is done. Thatâ€™s a lot of money and, as pointed out below, even if the buyer is getting a loan, it translates to cash at the end of the transaction. Thereâ€™s a misconception out there that if you offer cash, you can automatically get the property for less. It might work if you are buying a foreclosure AND if your offering price is marginally better than those with financing, however, normal sellers want as much as they can get. And it doesnâ€™t matter if you offered more than asking â€“ clearly someone offered more than you.
Additionally, as stated below, itâ€™s not the listing agent who makes the decision â€“ itâ€™s the seller. Iâ€™m not going to second guess the listing agent, but if it had been me, I would have recommended to the seller that they counter the top offers to try to get you â€“ the cash buyer â€“ up to the same amount being offered by the highest bidder with a loan. Donâ€™t know if that happened or not, but if you dug your heals in and wouldnâ€™t go any higher, then Iâ€™d recommend to the seller that they accept the offer with the highest bottom line.
Keep in mind as well that if the transaction doesnâ€™t appraise for the buyer with the loan, it may become available again. Have your agent talk to the listing agent to make sure you are in a back-up position â€¦ just in case.